By McCall                                             H.B. No. 1816
         77R1066 DWS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to continuation and functions of the Office of Consumer
 1-3     Credit Commissioner and the regulation of certain financial
 1-4     businesses.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 14.056, Finance Code, is amended to read
 1-7     as follows:
 1-8           Sec. 14.056.  CONFLICT OF INTEREST. (a)  In this section,
 1-9     "Texas trade association" means a cooperative and voluntarily
1-10     joined association of business or professional competitors in this
1-11     state designed to assist its members and its industry or profession
1-12     in dealing with mutual business or professional problems and in
1-13     promoting their common interest.
1-14           (b)  A person may not be an  employee of the office employed
1-15     in a "bona fide executive, administrative, or professional
1-16     capacity," as that phrase is used for purposes of establishing an
1-17     exemption to the overtime provisions of the federal Fair Labor
1-18     Standards Act of 1938 (29 U.S.C. Section 201 et seq.), and its
1-19     subsequent amendments, if:
1-20                 (1)  the person is an officer, employee, or paid
1-21     consultant of a Texas trade association in an industry regulated by
1-22     the office; or
1-23                 (2)  the person's spouse is an officer, manager, or
1-24     paid consultant of a Texas trade association in an industry
 2-1     regulated by the office.
 2-2           (c)  A person may not act as the general counsel to the
 2-3     office if the person is required to register as a lobbyist under
 2-4     Chapter 305, Government Code, because of the person's activities
 2-5     for compensation on behalf of a profession related to the operation
 2-6     of [The commissioner or an assistant commissioner, examiner, or
 2-7     other employee of the office may not be an officer, employee, or
 2-8     paid consultant of a trade association in an industry regulated by]
 2-9     the office.
2-10           SECTION 2. Section 14.058, Finance Code, is amended to read
2-11     as follows:
2-12           Sec. 14.058.  EQUAL EMPLOYMENT OPPORTUNITY. (a)  The
2-13     commissioner or the commissioner's designee shall prepare and
2-14     maintain a written policy statement that implements a program of
2-15     equal employment opportunity to ensure that all personnel decisions
2-16     are made without regard to race, color, disability, sex, religion,
2-17     age, or national origin.
2-18           (b)  The policy statement must include:
2-19                 (1)  personnel policies, including policies relating to
2-20     recruitment, evaluation, selection, training, and promotion of
2-21     personnel, that show the intent of the office to avoid the unlawful
2-22     employment practices described by Chapter 21, Labor Code; and
2-23                 (2)  an analysis of the extent to which the composition
2-24     of the office's personnel is in accordance with state and federal
2-25     law and a description of reasonable methods to achieve compliance
2-26     with state and federal law.
2-27           (c)  The policy statement must:
 3-1                 (1)  be updated annually;
 3-2                 (2)  be reviewed by the state Commission on Human
 3-3     Rights for compliance with Subsection (b)(1); and
 3-4                 (3)  be filed with the governor's office [plan to
 3-5     ensure implementation of a program of equal employment opportunity
 3-6     under which all personnel transactions are made without regard to
 3-7     race, color, disability, sex, religion, age, or national origin.
 3-8     The plan must include:]
 3-9                 [(1)  a comprehensive analysis of the office's
3-10     workforce by race, sex, ethnic origin, class of position, and
3-11     salary or wage;]
3-12                 [(2)  plans for recruitment, evaluation, selection,
3-13     appointment, training, promotion, and other personnel policies;]
3-14                 [(3)  steps reasonably designed to overcome any
3-15     identified underutilization of minorities and women in the office's
3-16     workforce; and]
3-17                 [(4)  objectives and goals, timetables for achieving
3-18     those objectives and goals, and assignment of responsibility for
3-19     their achievement.]
3-20           [(b)  The plan must cover an annual period and the
3-21     commissioner shall update it at least annually.]
3-22           [(c)  The office shall submit a plan progress report to the
3-23     governor's office not later than the 30th day after November 1 and
3-24     April 1 of each year and shall include in the report steps the
3-25     office has taken during the reporting period to comply with
3-26     requirements of this section].
3-27           SECTION 3. Section 14.062, Finance Code, is amended to read
 4-1     as follows:
 4-2           Sec. 14.062.  CONSUMER INFORMATION AND COMPLAINTS. (a)  The
 4-3     office shall maintain a file on each written complaint filed with
 4-4     the office.  The file must include:
 4-5                 (1)  the name of the person who filed the complaint;
 4-6                 (2)  the date the complaint is received by the office;
 4-7                 (3)  the subject matter of the complaint;
 4-8                 (4)  the name of each person contacted in relation to
 4-9     the complaint;
4-10                 (5)  a summary of the results of the review or
4-11     investigation of the complaint; and
4-12                 (6)  an explanation of the reason the file was closed,
4-13     if the office closed the file without taking action other than to
4-14     investigate the complaint.
4-15           (b)  The office shall provide to the person filing the
4-16     complaint and to each person who is a subject of the complaint a
4-17     copy of the office's policies and procedures relating to complaint
4-18     investigation and resolution.
4-19           (c)  The office, at least quarterly until final disposition
4-20     of the complaint, shall notify the person filing the complaint and
4-21     each person who is a subject of the complaint of the status of the
4-22     investigation [commissioner shall keep an information file about
4-23     each complaint filed with the office relating to a license holder
4-24     or other lender regulated by the office under this chapter or Title
4-25     4 or 5.]
4-26           [(b)  At least quarterly until final disposition of any
4-27     written complaint filed with the office relating to a license
 5-1     holder or other lender regulated by the office, the commissioner
 5-2     shall notify the parties to the complaint of the status of the
 5-3     complaint] unless the notice would jeopardize an undercover
 5-4     investigation.
 5-5           SECTION 4. Section 14.066, Finance Code, is amended to read
 5-6     as follows:
 5-7           Sec. 14.066.  SUNSET PROVISION. The office is subject to
 5-8     Chapter 325, Government Code (Texas Sunset Act). Unless continued
 5-9     in existence as provided by that chapter, the office is abolished
5-10     September 1, 2013 [2001].
5-11           SECTION 5. Subchapter B, Chapter 14, Finance Code, is amended
5-12     by adding Section 14.067 to read as follows:
5-13           Sec. 14.067.  EMPLOYEE INCENTIVE PROGRAM. The commissioner or
5-14     the commissioner's designee shall provide to agency employees
5-15     information and training on the benefits and methods of
5-16     participation in the state employee incentive program.
5-17           SECTION 6. Section 14.106, Finance Code, is amended to read
5-18     as follows:
5-19           Sec. 14.106.  INFORMATION [PROCEDURES] REGARDING EMPLOYMENT
5-20     REQUIREMENTS [STANDARDS OF CONDUCT]. The commissioner or the
5-21     commissioner's designee shall provide to agency employees, as often
5-22     as necessary, information regarding the requirements for employment
5-23     under this chapter, including information regarding a person's
5-24     responsibilities under applicable laws relating to standards of
5-25     conduct for state employees [shall develop a procedure to ensure
5-26     that a person holding the position of commissioner and each
5-27     assistant commissioner, examiner, and other employee of the office
 6-1     is informed of the standards of conduct required by law for a state
 6-2     official or employee].
 6-3           SECTION 7. Section 14.107, Finance Code, is amended to read
 6-4     as follows:
 6-5           Sec. 14.107.  FEES. (a)  The finance commission
 6-6     [commissioner] shall establish reasonable and necessary fees for
 6-7     carrying out the commissioner's powers and duties under this
 6-8     chapter, Title 4, and Chapters 371, 392, and 394 and under Chapters
 6-9     38-41, Business & Commerce Code.
6-10           (b)  The finance commission by rule shall set the fees for
6-11     licensing and examination under Chapter 342, 348, or 371 at amounts
6-12     or rates necessary to recover the costs of administering those
6-13     chapters.  The rules may provide that the amount of a fee charged
6-14     to a license holder is based on the volume of the license holder's
6-15     regulated business and other key factors.  The commissioner may
6-16     provide for collection of a single annual fee from a person
6-17     licensed under Chapter 342, 348, or 371 to include amounts due for
6-18     both licensing and examination.
6-19           SECTION 8. Section 341.001, Finance Code, is amended to read
6-20     as follows:
6-21           Sec. 341.001.  DEFINITIONS. In this subtitle:
6-22                 (1)  "Authorized lender" means a person who holds a
6-23     license issued under Chapter 342, a bank, or a savings association.
6-24                 (2)  "Bank" means a person:
6-25                       (A)  organized as a state bank under Subtitle A,
6-26     Title 3, or under similar laws of another state if the deposits of
6-27     a bank from another state are insured by the Federal Deposit
 7-1     Insurance Corporation; or
 7-2                       (B)  organized as a national bank under 12 U.S.C.
 7-3     Section 21 et seq., as subsequently amended.
 7-4                 (3)  "Cash advance" means the total of the amount of
 7-5     cash or its equivalent that the borrower receives and the amount
 7-6     that is paid at the borrower's direction or request, on the
 7-7     borrower's behalf, or for the borrower's benefit.
 7-8                 (4)  "Commissioner" means the consumer credit
 7-9     commissioner.
7-10                 (5)  "Credit union" means a person:
7-11                       (A)  doing business under Subtitle D, Title 3; or
7-12                       (B)  organized under the Federal Credit Union Act
7-13     (12 U.S.C. Section 1751 et seq.), as subsequently amended.
7-14                 (6)  "Deferred presentment transaction" means a
7-15     transaction in which:
7-16                       (A)  a cash advance is made in exchange for a
7-17     personal check or authorization to debit a deposit account;
7-18                       (B)  the amount of the check or authorized debit
7-19     equals the amount of the advance plus a fee; and
7-20                       (C)  the person making the advance agrees that
7-21     the check will not be cashed or deposited or the authorized debit
7-22     will not be made until a designated future date.
7-23                 (7)  "Finance commission" means the Finance Commission
7-24     of Texas or a subcommittee created by rule of the Finance
7-25     Commission of Texas.
7-26                 (8) [(7)]  "Interest" has the meaning assigned by
7-27     Section 301.002 [301.001].
 8-1                 (9)  "Loan" has the meaning assigned by Section 301.002
 8-2     and includes a sale-leaseback transaction and a deferred
 8-3     presentment transaction.
 8-4                 (10)  "Sale-leaseback transaction" means a transaction
 8-5     in which a person sells personal property used primarily for
 8-6     personal, family, or household use and the buyer of the property
 8-7     agrees to lease the property back to the seller.  In a
 8-8     sale-leaseback transaction:
 8-9                       (A)  the buyer is a creditor and the seller is an
8-10     obligor;
8-11                       (B)  an agreement to defer payment of a debt and
8-12     an obligation to pay the debt are established; and
8-13                       (C)  any amount received by the buyer in excess
8-14     of the price paid for the property by the buyer is interest subject
8-15     to this subtitle.
8-16                 (11) [(8)]  "Savings association" means a person:
8-17                       (A)  organized as a state savings and loan
8-18     association or savings bank under Subtitle B or C, Title 3, or
8-19     under similar laws of another state if the deposits of the savings
8-20     association from another state are insured by the Federal Deposit
8-21     Insurance Corporation; or
8-22                       (B)  organized as a federal savings and loan
8-23     association or savings bank under the Home Owners' Loan Act (12
8-24     U.S.C. Section 1461 et seq.), as subsequently amended.
8-25           SECTION 9. Section 341.403, Finance Code, is amended by
8-26     adding Subsections (c) and (d) to read as follows:
8-27           (c)  The finance commission may not adopt rules restricting
 9-1     advertising or competitive bidding by a license holder regulated by
 9-2     the Office of Consumer Credit Commissioner except to prohibit
 9-3     false, misleading, or deceptive practices.
 9-4           (d)  In its rules to prohibit false, misleading, or deceptive
 9-5     practices, the finance commission may not include a rule that:
 9-6                 (1)  restricts the use of any medium for advertising;
 9-7                 (2)  restricts the use of a license holder's personal
 9-8     appearance or voice in an advertisement;
 9-9                 (3)  relates to the size or duration of an
9-10     advertisement by the license holder; or
9-11                 (4)  restricts the license holder's advertisement under
9-12     a trade name, unless the trade name is deceptive.
9-13           SECTION 10. Chapter 341, Finance Code, is amended by adding
9-14     Subchapter F to read as follows:
9-15              SUBCHAPTER F. LICENSING AND REGULATION IN GENERAL
9-16           Sec. 341.501.  STAGGERED RENEWAL. The finance commission by
9-17     rule may adopt a system under which licenses under this subtitle
9-18     expire on various dates during the year.  For the year in which the
9-19     license expiration date is changed, the Office of Consumer Credit
9-20     Commissioner shall prorate license fees on a monthly basis so that
9-21     each license holder pays only that portion of the license fee that
9-22     is allocable to the number of months during which the license is
9-23     valid.  On renewal of the license on the new expiration date, the
9-24     total license renewal fee is payable.
9-25           Sec. 341.502.  FORM OF LOAN CONTRACT. (a)  A contract for a
9-26     loan under Chapter 342, a retail installment transaction under
9-27     Chapter 348, or a home equity loan regulated by the Office of
 10-1    Consumer Credit Commissioner, whether in English or Spanish, must
 10-2    be written in plain language designed to be easily  understood by
 10-3    the average consumer. The contract must be printed in an easily
 10-4    readable font and type size.
 10-5          (b)  The finance commission shall adopt rules governing the
 10-6    form of contracts to which this section applies.  The rules must
 10-7    include model contracts complying with the rules and this section.
 10-8          (c)  A person governed by this section is not required to use
 10-9    a model contract.  The person, however, may not use a contract
10-10    other than a model contract unless the person has submitted the
10-11    contract to the commissioner. The commissioner shall issue an order
10-12    disapproving the contract if the commissioner determines that the
10-13    contract does not comply with this section or rules adopted under
10-14    this section.
10-15          (d)  The person may begin using a contract submitted under
10-16    Subsection (c) on the date it is submitted for approval. If the
10-17    commissioner issues an order disapproving the contract, the person
10-18    may not use the contract after the order takes effect.
10-19          (e)  A person may not represent that the commissioner's
10-20    approval or failure to disapprove a contract constitutes an
10-21    endorsement of the contract by the commissioner, the Office of
10-22    Consumer Credit Commissioner, or the finance commission.
10-23          SECTION 11. Subchapter A, Chapter 342, Finance Code, is
10-24    amended by adding Sections 342.007 and 342.008 to read as follows:
10-25          Sec. 342.007.  DEFERRED PRESENTMENT TRANSACTION. The finance
10-26    commission shall adopt rules providing for the regulation of
10-27    deferred presentment transactions.
 11-1          Sec. 342.008.  ATTEMPT TO EVADE LAW. A person who is a party
 11-2    to a sale-leaseback transaction or a deferred presentment
 11-3    transaction may not evade the application of this subtitle or a
 11-4    rule adopted under this section by use of any device, subterfuge,
 11-5    or pretense.
 11-6          SECTION 12. Section 342.101(c), Finance Code, is amended to
 11-7    read as follows:
 11-8          (c)  On the filing of each license application, the applicant
 11-9    shall pay to the commissioner for the license's year of issuance a
11-10    license fee in an amount determined as provided by Section 14.107
11-11    [of:]
11-12                [(1)  $100 if the license is granted not later than
11-13    June 30; or]
11-14                [(2)  $50 if the license is granted after June 30].
11-15          SECTION 13. Section 342.154, Finance Code, is amended to read
11-16    as follows:
11-17          Sec. 342.154.  ANNUAL LICENSE FEE. [(a)] Not later than
11-18    December 1, a license holder shall pay to the commissioner for each
11-19    license held an annual fee for the year beginning the next January
11-20    1, in an amount determined as provided by Section 14.107.
11-21          [(b)  The annual fee for a license under this chapter is $200
11-22    except that if, on September 30 preceding the date on which the
11-23    annual fee is due, the gross unpaid balance of loans regulated
11-24    under this chapter in the office for which the license is issued is
11-25    $100,000 or less, the annual fee is $100.]
11-26          SECTION 14. Chapter 348, Finance Code, is amended by adding
11-27    Subchapter F to read as follows:
 12-1            SUBCHAPTER F. LICENSING; ADMINISTRATION OF CHAPTER
 12-2          Sec. 348.501.  LICENSE REQUIRED. (a)  A person may not act as
 12-3    a holder under this chapter unless the person:
 12-4                (1)  is an authorized lender or a credit union; or
 12-5                (2)  holds a license issued under this chapter.
 12-6          (b)  A person may not use any device, subterfuge, or pretense
 12-7    to evade the application of this section.
 12-8          Sec. 348.502.  APPLICATION REQUIREMENTS. (a)  The application
 12-9    for a license under this chapter must:
12-10                (1)  be under oath;
12-11                (2)  identify the applicant's principal parties in
12-12    interest; and
12-13                (3)  contain other relevant information that the
12-14    commissioner requires.
12-15          (b)  On the filing of a license application, the applicant
12-16    shall pay to the commissioner:
12-17                (1)  an investigation fee of $200; and
12-18                (2)  for the license's year of issuance, a license fee
12-19    in an amount determined as provided by Section 14.107.
12-20          Sec. 348.503.  INVESTIGATION OF APPLICATION. On the filing of
12-21    an application and payment of the required fees, the commissioner
12-22    shall conduct an investigation to determine whether to issue the
12-23    license.
12-24          Sec. 348.504.  APPROVAL OR DENIAL OF APPLICATION. (a)  The
12-25    commissioner shall approve the application and issue to the
12-26    applicant a license  under this chapter if the commissioner finds
12-27    that:
 13-1                (1)  the financial responsibility, experience,
 13-2    character, and general fitness of the applicant are sufficient to:
 13-3                      (A)  command the confidence of the public; and
 13-4                      (B)  warrant the belief that the business will be
 13-5    operated lawfully and fairly, within the purposes of this chapter;
 13-6    and
 13-7                (2)  the forms and contracts to be used by the
 13-8    applicant are appropriate and adequate to protect the interests of
 13-9    retail buyers.
13-10          (b)  If the commissioner does not find the eligibility
13-11    requirements of Subsection (a), the commissioner shall notify the
13-12    applicant.
13-13          (c)  If an applicant requests a hearing on the application
13-14    not later than the 30th day after the date of notification under
13-15    Subsection (b), the applicant is entitled to a hearing not later
13-16    than the 60th day after the date of the request.
13-17          (d)  The commissioner shall approve or deny the application
13-18    not later than the 60th day after the date of the filing of a
13-19    completed application with payment of the required fees, or if a
13-20    hearing is held, after the date of the completion of the hearing on
13-21    the application.  The commissioner and the applicant may agree to a
13-22    later date in writing.
13-23          Sec. 348.505.  DISPOSITION OF FEES ON DENIAL OF APPLICATION.
13-24    If the commissioner denies the application, the commissioner shall
13-25    retain the investigation fee and shall return to the applicant the
13-26    license fee submitted with the application.
13-27          Sec. 348.506.  ANNUAL LICENSE FEE. Not later than December 1,
 14-1    a license holder shall pay to the commissioner for each license
 14-2    held an annual fee for the year beginning the next January 1, in an
 14-3    amount determined as provided by Section 14.107.
 14-4          Sec. 348.507.  EXPIRATION OF LICENSE ON FAILURE TO PAY ANNUAL
 14-5    FEE. If the annual fee for a license is not paid before the 16th
 14-6    day after the date on which the written notice of delinquency of
 14-7    payment has been given to the license holder, the license expires
 14-8    on the later of:
 14-9                (1)  that day; or
14-10                (2)  December 31 of the last year for which an annual
14-11    fee was paid.
14-12          Sec. 348.508.  LICENSE SUSPENSION OR REVOCATION. After notice
14-13    and a hearing the commissioner may suspend or revoke a license if
14-14    the commissioner finds that:
14-15                (1)  the license holder failed to pay the annual
14-16    license fee, an examination fee, an investigation fee, or another
14-17    charge imposed by the commissioner;
14-18                (2)  the license holder, knowingly or without the
14-19    exercise of due care, violated this chapter or a rule adopted or
14-20    order issued under this chapter; or
14-21                (3)  a fact or condition exists that, if it had existed
14-22    or had been known to exist at the time of the original application
14-23    for the license, clearly would have justified the commissioner's
14-24    denial of the application.
14-25          Sec. 348.509.  REINSTATEMENT OF SUSPENDED LICENSE;  ISSUANCE
14-26    OF NEW LICENSE AFTER REVOCATION. The commissioner may reinstate a
14-27    suspended license or issue a new license on application to a person
 15-1    whose license has been revoked if at the time of the reinstatement
 15-2    or issuance no fact or condition exists that clearly would have
 15-3    justified the commissioner's denial of an original application for
 15-4    the license.
 15-5          Sec. 348.510.  SURRENDER OF LICENSE. A license holder may
 15-6    surrender a license issued under this chapter by delivering to the
 15-7    commissioner:
 15-8                (1)  the license; and
 15-9                (2)  a written notice of the license's surrender.
15-10          Sec. 348.511.  EFFECT OF LICENSE SUSPENSION, REVOCATION, OR
15-11    SURRENDER. (a)  The suspension, revocation, or surrender of a
15-12    license issued under this chapter does not affect the obligation of
15-13    a contract between the license holder and a retail buyer entered
15-14    into before the suspension, revocation, or surrender.
15-15          (b)  Surrender of a license does not affect the license
15-16    holder's civil or criminal liability for an act committed before
15-17    surrender.
15-18          Sec. 348.512.  TRANSFER OR ASSIGNMENT OF LICENSE. A license
15-19    may be transferred or assigned only with the approval of the
15-20    commissioner.
15-21          Sec. 348.513.  ADOPTION OF RULES. (a)  The finance commission
15-22    may adopt rules to enforce this chapter.
15-23          (b)  The commissioner shall recommend proposed rules to the
15-24    finance commission.
15-25          Sec. 348.514.  EXAMINATION;  ACCESS TO RECORDS. (a)  At the
15-26    times the commissioner considers necessary, the commissioner or the
15-27    commissioner's representative shall:
 16-1                (1)  examine each place of business of each license
 16-2    holder; and
 16-3                (2)  investigate the license holder's transactions and
 16-4    records, including books, accounts, papers, and correspondence, to
 16-5    the extent the transactions and records pertain to the business
 16-6    regulated under this chapter.
 16-7          (b)  The license holder shall:
 16-8                (1)  give the commissioner or the commissioner's
 16-9    representative free access to the license holder's office, place of
16-10    business, files, safes, and vaults; and
16-11                (2)  allow the commissioner or the commissioner's
16-12    representative to make a copy of an item that may be investigated
16-13    under Subsection (a)(2).
16-14          (c)  During an examination the commissioner or the
16-15    commissioner's representative may administer oaths and examine any
16-16    person under oath on any subject pertinent to a matter that the
16-17    commissioner is authorized or required to consider, investigate, or
16-18    secure information about under this chapter.
16-19          (d)  Information obtained under this section is confidential.
16-20          (e)  A license holder's violation of Subsection (b) is a
16-21    ground for the suspension or revocation of the license.
16-22          (f)  An examination of a license holder's place of business
16-23    may be made only:
16-24                (1)  after advance notice; and
16-25                (2)  during normal business hours.
16-26          Sec. 348.515.  GENERAL INVESTIGATION. To discover a violation
16-27    of this chapter or to obtain information required under this
 17-1    chapter, the commissioner or the commissioner's representative may
 17-2    investigate the records, including books, accounts, papers, and
 17-3    correspondence, of a person, including a license holder, who the
 17-4    commissioner has reasonable cause to believe is violating this
 17-5    chapter, regardless of whether the person claims to not be subject
 17-6    to this chapter.
 17-7          Sec. 348.516.  PAYMENT OF EXAMINATION COSTS AND
 17-8    ADMINISTRATION EXPENSES. A license holder shall pay to the
 17-9    commissioner an amount determined as provided by Section 14.107 and
17-10    assessed by the commissioner to cover the direct and indirect costs
17-11    of an examination and a proportionate share of general
17-12    administrative expenses.
17-13          Sec. 348.517.  LICENSE HOLDER'S RECORDS. (a)  A license
17-14    holder shall maintain a record of each retail installment
17-15    transaction made under this chapter as is necessary to enable the
17-16    commissioner to determine whether the license holder is complying
17-17    with this chapter.
17-18          (b)  A license holder shall keep the record until the later
17-19    of:
17-20                (1)  the third anniversary of the date the last payment
17-21    was made on the retail installment transaction; or
17-22                (2)  the second anniversary of the date on which the
17-23    final entry is made in the record.
17-24          (c)  A record described by Subsection (a)  must be prepared
17-25    in accordance with accepted accounting practices.
17-26          (d)  The commissioner shall accept a license holder's system
17-27    of records if the system discloses the information reasonably
 18-1    required under Subsection (a).
 18-2          (e)  A license holder shall keep each obligation signed by a
 18-3    retail buyer at an office in this state designated by the license
 18-4    holder unless the obligation is transferred under an agreement that
 18-5    gives the commissioner access to the obligation.
 18-6          Sec. 348.518.  SHARING OF INFORMATION. To ensure consistent
 18-7    enforcement of law and minimization of regulatory burdens, the
 18-8    commissioner and the Texas Department of Transportation may share
 18-9    information, including criminal history information, relating to a
18-10    person licensed under this chapter. Information otherwise
18-11    confidential remains confidential after it is shared under this
18-12    section.
18-13          SECTION 15. Section 371.055, Finance Code, is amended to read
18-14    as follows:
18-15          Sec. 371.055.  FEES; PROOF OF INSURANCE. An applicant must
18-16    submit with the application:
18-17                (1)  an investigation fee of:
18-18                      (A)  $500 if the applicant does not hold a
18-19    license; or
18-20                      (B)  $250 if the application:
18-21                            (i)  is for an additional license for a
18-22    separate location; or
18-23                            (ii)  involves substantially identical
18-24    principals and owners of a licensed pawnshop at a separate
18-25    location;
18-26                (2)  an annual fee in an amount determined as provided
18-27    by Section 14.107 [of $100]; and
 19-1                (3)  proof of general liability and fire insurance in a
 19-2    reasonable amount and form required by the commissioner.
 19-3          SECTION 16. Section 371.064(a), Finance Code, is amended to
 19-4    read as follows:
 19-5          (a)  Not later than December 1, a pawnbroker shall pay to the
 19-6    commissioner for each license held an annual fee in an amount
 19-7    determined as provided by Section 14.107 [of $125] for the year
 19-8    beginning the next January 1.
 19-9          SECTION 17.  Section 411.095(a), Government Code, is amended
19-10    to read as follows:
19-11          (a)  The consumer credit commissioner is entitled to obtain
19-12    from the department criminal history record information that
19-13    relates to a person who is[:]
19-14                [(1)]  an applicant for or holder of a license under
19-15    Chapter 348 or 371, Finance Code[; or]
19-16                [(2)  the holder of a license under that Act].
19-17          SECTION 18. Section 371.065, Finance Code, is repealed.
19-18          SECTION 19. Sections 348.401 and 348.402, Finance Code, are
19-19    repealed.
19-20          SECTION 20. This Act takes effect September 1, 2001, except:
19-21                (1)  Section 19 of this Act takes effect September 1,
19-22    2002; and
19-23                (2)  the requirement that a person hold a license under
19-24    Subchapter F, Chapter 348, Finance Code, as added by this Act,
19-25    applies only on and after September 1, 2002.