By: Sibley S.B. No. 317
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
1-25 regulated by the office.
2-1 (c) A person may not act as the general counsel to the
2-2 office if the person is required to register as a lobbyist under
2-3 Chapter 305, Government Code, because of the person's activities
2-4 for compensation on behalf of a profession related to the operation
2-5 of [The commissioner or an assistant commissioner, examiner, or
2-6 other employee of the office may not be an officer, employee, or
2-7 paid consultant of a trade association in an industry regulated by]
2-8 the office.
2-9 SECTION 2. Section 14.058, Finance Code, is amended to read
2-10 as follows:
2-11 Sec. 14.058. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
2-12 commissioner or the commissioner's designee shall prepare and
2-13 maintain a written policy statement that implements a program of
2-14 equal employment opportunity to ensure that all personnel decisions
2-15 are made without regard to race, color, disability, sex, religion,
2-16 age, or national origin.
2-17 (b) The policy statement must include:
2-18 (1) personnel policies, including policies relating to
2-19 recruitment, evaluation, selection, training, and promotion of
2-20 personnel, that show the intent of the office to avoid the unlawful
2-21 employment practices described by Chapter 21, Labor Code; and
2-22 (2) an analysis of the extent to which the composition
2-23 of the office's personnel is in accordance with state and federal
2-24 law and a description of reasonable methods to achieve compliance
2-25 with state and federal law.
2-26 (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].
4-1 SECTION 3. Section 14.062, Finance Code, is amended to read
4-2 as follows:
4-3 Sec. 14.062. CONSUMER INFORMATION AND COMPLAINTS. (a) The
4-4 office shall maintain a file on each written complaint filed with
4-5 the office. The file must include:
4-6 (1) the name of the person who filed the complaint;
4-7 (2) the date the complaint is received by the office;
4-8 (3) the subject matter of the complaint;
4-9 (4) the name of each person contacted in relation to
4-10 the complaint;
4-11 (5) a summary of the results of the review or
4-12 investigation of the complaint; and
4-13 (6) an explanation of the reason the file was closed,
4-14 if the office closed the file without taking action other than to
4-15 investigate the complaint.
4-16 (b) The office shall provide to the person filing the
4-17 complaint and to each person who is a subject of the complaint a
4-18 copy of the office's policies and procedures relating to complaint
4-19 investigation and resolution.
4-20 (c) The office, at least quarterly until final disposition
4-21 of the complaint, shall notify the person filing the complaint and
4-22 each person who is a subject of the complaint of the status of the
4-23 investigation [commissioner shall keep an information file about
4-24 each complaint filed with the office relating to a license holder
4-25 or other lender regulated by the office under this chapter or Title
4-26 4 or 5.]
5-1 [(b) At least quarterly until final disposition of any
5-2 written complaint filed with the office relating to a license
5-3 holder or other lender regulated by the office, the commissioner
5-4 shall notify the parties to the complaint of the status of the
5-5 complaint] unless the notice would jeopardize an undercover
5-6 investigation.
5-7 SECTION 4. Section 14.066, Finance Code, is amended to read
5-8 as follows:
5-9 Sec. 14.066. SUNSET PROVISION. The office is subject to
5-10 Chapter 325, Government Code (Texas Sunset Act). Unless continued
5-11 in existence as provided by that chapter, the office is abolished
5-12 September 1, 2013 [2001].
5-13 SECTION 5. Subchapter B, Chapter 14, Finance Code, is
5-14 amended by adding Section 14.067 to read as follows:
5-15 Sec. 14.067. EMPLOYEE INCENTIVE PROGRAM. The commissioner
5-16 or the commissioner's designee shall provide to agency employees
5-17 information and training on the benefits and methods of
5-18 participation in the state employee incentive program.
5-19 SECTION 6. Section 14.106, Finance Code, is amended to read
5-20 as follows:
5-21 Sec. 14.106. INFORMATION [PROCEDURES] REGARDING EMPLOYMENT
5-22 REQUIREMENTS [STANDARDS OF CONDUCT]. The commissioner or the
5-23 commissioner's designee shall provide to agency employees, as often
5-24 as necessary, information regarding the requirements for employment
5-25 under this chapter, including information regarding a person's
5-26 responsibilities under applicable laws relating to standards of
6-1 conduct for state employees [shall develop a procedure to ensure
6-2 that a person holding the position of commissioner and each
6-3 assistant commissioner, examiner, and other employee of the office
6-4 is informed of the standards of conduct required by law for a state
6-5 official or employee].
6-6 SECTION 7. Section 14.107, Finance Code, is amended to read
6-7 as follows:
6-8 Sec. 14.107. FEES. (a) The finance commission
6-9 [commissioner] shall establish reasonable and necessary fees for
6-10 carrying out the commissioner's powers and duties under this
6-11 chapter, Title 4, and Chapters 371, 392, and 394 and under Chapters
6-12 38-41, Business & Commerce Code.
6-13 (b) The finance commission by rule shall set the fees for
6-14 licensing and examination under Chapter 342, 348, or 371 at amounts
6-15 or rates necessary to recover the costs of administering those
6-16 chapters. The rules may provide that the amount of a fee charged
6-17 to a license holder is based on the volume of the license holder's
6-18 regulated business and other key factors. The commissioner may
6-19 provide for collection of a single annual fee from a person
6-20 licensed under Chapter 342, 348, or 371 to include amounts due for
6-21 both licensing and examination.
6-22 SECTION 8. Section 341.001, Finance Code, is amended to read
6-23 as follows:
6-24 Sec. 341.001. DEFINITIONS. In this subtitle:
6-25 (1) "Authorized lender" means a person who holds a
6-26 license issued under Chapter 342, a bank, or a savings association.
7-1 (2) "Bank" means a person:
7-2 (A) organized as a state bank under Subtitle A,
7-3 Title 3, or under similar laws of another state if the deposits of
7-4 a bank from another state are insured by the Federal Deposit
7-5 Insurance Corporation; or
7-6 (B) organized as a national bank under 12 U.S.C.
7-7 Section 21 et seq., as subsequently amended.
7-8 (3) "Cash advance" means the total of the amount of
7-9 cash or its equivalent that the borrower receives and the amount
7-10 that is paid at the borrower's direction or request, on the
7-11 borrower's behalf, or for the borrower's benefit.
7-12 (4) "Commissioner" means the consumer credit
7-13 commissioner.
7-14 (5) "Credit union" means a person:
7-15 (A) doing business under Subtitle D, Title 3; or
7-16 (B) organized under the Federal Credit Union Act
7-17 (12 U.S.C. Section 1751 et seq.), as subsequently amended.
7-18 (6) "Deferred presentment transaction" means a
7-19 transaction in which:
7-20 (A) a cash advance is made in exchange for a
7-21 personal check or authorization to debit a deposit account;
7-22 (B) the amount of the check or authorized debit
7-23 equals the amount of the advance plus a fee; and
7-24 (C) the person making the advance agrees that
7-25 the check will not be cashed or deposited or the authorized debit
7-26 will not be made until a designated future date.
8-1 (7) "Finance commission" means the Finance Commission
8-2 of Texas or a subcommittee created by rule of the Finance
8-3 Commission of Texas.
8-4 (8) [(7)] "Interest" has the meaning assigned by
8-5 Section 301.002 [301.001].
8-6 (9) "Loan" has the meaning assigned by Section 301.002
8-7 and includes a sale-leaseback transaction and a deferred
8-8 presentment transaction.
8-9 (10) "Sale-leaseback transaction" means a transaction
8-10 in which a person sells personal property used primarily for
8-11 personal, family, or household use and the buyer of the property
8-12 agrees to lease the property back to the seller. In a
8-13 sale-leaseback transaction:
8-14 (A) the buyer is a creditor and the seller is an
8-15 obligor;
8-16 (B) an agreement to defer payment of a debt and
8-17 an obligation to pay the debt are established; and
8-18 (C) any amount received by the buyer in excess
8-19 of the price paid for the property by the buyer is interest subject
8-20 to this subtitle.
8-21 (11) [(8)] "Savings association" means a person:
8-22 (A) organized as a state savings and loan
8-23 association or savings bank under Subtitle B or C, Title 3, or
8-24 under similar laws of another state if the deposits of the savings
8-25 association from another state are insured by the Federal Deposit
8-26 Insurance Corporation; or
9-1 (B) organized as a federal savings and loan
9-2 association or savings bank under the Home Owners' Loan Act (12
9-3 U.S.C. Section 1461 et seq.), as subsequently amended.
9-4 SECTION 9. Section 341.403, Finance Code, is amended by
9-5 adding Subsections (c) and (d) to read as follows:
9-6 (c) The finance commission may not adopt rules restricting
9-7 advertising or competitive bidding by a license holder regulated by
9-8 the Office of Consumer Credit Commissioner except to prohibit
9-9 false, misleading, or deceptive practices.
9-10 (d) In its rules to prohibit false, misleading, or deceptive
9-11 practices, the finance commission may not include a rule that:
9-12 (1) restricts the use of any medium for advertising;
9-13 (2) restricts the use of a license holder's personal
9-14 appearance or voice in an advertisement;
9-15 (3) relates to the size or duration of an
9-16 advertisement by the license holder; or
9-17 (4) restricts the license holder's advertisement under
9-18 a trade name, unless the trade name is deceptive.
9-19 SECTION 10. Chapter 341, Finance Code, is amended by adding
9-20 Subchapter F to read as follows:
9-21 SUBCHAPTER F. LICENSING AND REGULATION IN GENERAL
9-22 Sec. 341.501. STAGGERED RENEWAL. The finance commission by
9-23 rule may adopt a system under which licenses under this subtitle
9-24 expire on various dates during the year. For the year in which the
9-25 license expiration date is changed, the Office of Consumer Credit
9-26 Commissioner shall prorate license fees on a monthly basis so that
10-1 each license holder pays only that portion of the license fee that
10-2 is allocable to the number of months during which the license is
10-3 valid. On renewal of the license on the new expiration date, the
10-4 total license renewal fee is payable.
10-5 Sec. 341.502. FORM OF LOAN CONTRACT. (a) A contract for a
10-6 loan under Chapter 342, a retail installment transaction under
10-7 Chapter 348, or a home equity loan regulated by the Office of
10-8 Consumer Credit Commissioner, whether in English or Spanish, must
10-9 be written in plain language designed to be easily understood by
10-10 the average consumer. The contract must be printed in an easily
10-11 readable font and type size.
10-12 (b) The finance commission shall adopt rules governing the
10-13 form of contracts to which this section applies. The rules must
10-14 include model contracts complying with the rules and this section.
10-15 (c) A person governed by this section is not required to use
10-16 a model contract. The person, however, may not use a contract
10-17 other than a model contract unless the person has submitted the
10-18 contract to the commissioner. The commissioner shall issue an
10-19 order disapproving the contract if the commissioner determines that
10-20 the contract does not comply with this section or rules adopted
10-21 under this section.
10-22 (d) The person may begin using a contract submitted under
10-23 Subsection (c) on the date it is submitted for approval. If the
10-24 commissioner issues an order disapproving the contract, the person
10-25 may not use the contract after the order takes effect.
10-26 (e) A person may not represent that the commissioner's
11-1 approval or failure to disapprove a contract constitutes an
11-2 endorsement of the contract by the commissioner, the Office of
11-3 Consumer Credit Commissioner, or the finance commission.
11-4 SECTION 11. Subchapter A, Chapter 342, Finance Code, is
11-5 amended by adding Sections 342.007 and 342.008 to read as follows:
11-6 Sec. 342.007. DEFERRED PRESENTMENT TRANSACTION. The finance
11-7 commission shall adopt rules providing for the regulation of
11-8 deferred presentment transactions.
11-9 Sec. 342.008. ATTEMPT TO EVADE LAW. A person who is a party
11-10 to a deferred presentment transaction may not evade the application
11-11 of this subtitle or a rule adopted under this section by use of any
11-12 device, subterfuge, or pretense.
11-13 SECTION 12. Subsection (c), Section 342.101, Finance Code,
11-14 is amended to read as follows:
11-15 (c) On the filing of each license application, the applicant
11-16 shall pay to the commissioner for the license's year of issuance a
11-17 license fee in an amount determined as provided by Section 14.107
11-18 [of:]
11-19 [(1) $100 if the license is granted not later than
11-20 June 30; or]
11-21 [(2) $50 if the license is granted after June 30].
11-22 SECTION 13. Section 342.154, Finance Code, is amended to
11-23 read as follows:
11-24 Sec. 342.154. ANNUAL LICENSE FEE. [(a)] Not later than
11-25 December 1, a license holder shall pay to the commissioner for each
11-26 license held an annual fee for the year beginning the next January
12-1 1, in an amount determined as provided by Section 14.107.
12-2 [(b) The annual fee for a license under this chapter is $200
12-3 except that if, on September 30 preceding the date on which the
12-4 annual fee is due, the gross unpaid balance of loans regulated
12-5 under this chapter in the office for which the license is issued is
12-6 $100,000 or less, the annual fee is $100.]
12-7 SECTION 14. Chapter 348, Finance Code, is amended by adding
12-8 Subchapter F to read as follows:
12-9 SUBCHAPTER F. LICENSING; ADMINISTRATION OF CHAPTER
12-10 Sec. 348.501. LICENSE REQUIRED. (a) A person may not act
12-11 as a holder under this chapter unless the person:
12-12 (1) is an authorized lender or a credit union; or
12-13 (2) holds a license issued under this chapter.
12-14 (b) A person may not use any device, subterfuge, or pretense
12-15 to evade the application of this section.
12-16 Sec. 348.502. APPLICATION REQUIREMENTS. (a) The
12-17 application for a license under this chapter must:
12-18 (1) be under oath;
12-19 (2) identify the applicant's principal parties in
12-20 interest; and
12-21 (3) contain other relevant information that the
12-22 commissioner requires.
12-23 (b) On the filing of a license application, the applicant
12-24 shall pay to the commissioner:
12-25 (1) an investigation fee of $200; and
12-26 (2) for the license's year of issuance, a license fee
13-1 in an amount determined as provided by Section 14.107.
13-2 Sec. 348.503. INVESTIGATION OF APPLICATION. On the filing
13-3 of an application and payment of the required fees, the
13-4 commissioner shall conduct an investigation to determine whether to
13-5 issue the license.
13-6 Sec. 348.504. APPROVAL OR DENIAL OF APPLICATION. (a) The
13-7 commissioner shall approve the application and issue to the
13-8 applicant a license under this chapter if the commissioner finds
13-9 that:
13-10 (1) the financial responsibility, experience,
13-11 character, and general fitness of the applicant are sufficient to:
13-12 (A) command the confidence of the public; and
13-13 (B) warrant the belief that the business will be
13-14 operated lawfully and fairly, within the purposes of this chapter;
13-15 and
13-16 (2) the forms and contracts to be used by the
13-17 applicant are appropriate and adequate to protect the interests of
13-18 retail buyers.
13-19 (b) If the commissioner does not find the eligibility
13-20 requirements of Subsection (a), the commissioner shall notify the
13-21 applicant.
13-22 (c) If an applicant requests a hearing on the application
13-23 not later than the 30th day after the date of notification under
13-24 Subsection (b), the applicant is entitled to a hearing not later
13-25 than the 60th day after the date of the request.
13-26 (d) The commissioner shall approve or deny the application
14-1 not later than the 60th day after the date of the filing of a
14-2 completed application with payment of the required fees, or if a
14-3 hearing is held, after the date of the completion of the hearing on
14-4 the application. The commissioner and the applicant may agree to a
14-5 later date in writing.
14-6 Sec. 348.505. DISPOSITION OF FEES ON DENIAL OF APPLICATION.
14-7 If the commissioner denies the application, the commissioner shall
14-8 retain the investigation fee and shall return to the applicant the
14-9 license fee submitted with the application.
14-10 Sec. 348.506. ANNUAL LICENSE FEE. Not later than December
14-11 1, a license holder shall pay to the commissioner for each license
14-12 held an annual fee for the year beginning the next January 1, in an
14-13 amount determined as provided by Section 14.107.
14-14 Sec. 348.507. EXPIRATION OF LICENSE ON FAILURE TO PAY ANNUAL
14-15 FEE. If the annual fee for a license is not paid before the 16th
14-16 day after the date on which the written notice of delinquency of
14-17 payment has been given to the license holder, the license expires
14-18 on the later of:
14-19 (1) that day; or
14-20 (2) December 31 of the last year for which an annual
14-21 fee was paid.
14-22 Sec. 348.508. LICENSE SUSPENSION OR REVOCATION. After
14-23 notice and a hearing the commissioner may suspend or revoke a
14-24 license if the commissioner finds that:
14-25 (1) the license holder failed to pay the annual
14-26 license fee, an examination fee, an investigation fee, or another
15-1 charge imposed by the commissioner;
15-2 (2) the license holder, knowingly or without the
15-3 exercise of due care, violated this chapter or a rule adopted or
15-4 order issued under this chapter; or
15-5 (3) a fact or condition exists that, if it had existed
15-6 or had been known to exist at the time of the original application
15-7 for the license, clearly would have justified the commissioner's
15-8 denial of the application.
15-9 Sec. 348.509. REINSTATEMENT OF SUSPENDED LICENSE; ISSUANCE
15-10 OF NEW LICENSE AFTER REVOCATION. The commissioner may reinstate a
15-11 suspended license or issue a new license on application to a person
15-12 whose license has been revoked if at the time of the reinstatement
15-13 or issuance no fact or condition exists that clearly would have
15-14 justified the commissioner's denial of an original application for
15-15 the license.
15-16 Sec. 348.510. SURRENDER OF LICENSE. A license holder may
15-17 surrender a license issued under this chapter by delivering to the
15-18 commissioner:
15-19 (1) the license; and
15-20 (2) a written notice of the license's surrender.
15-21 Sec. 348.511. EFFECT OF LICENSE SUSPENSION, REVOCATION, OR
15-22 SURRENDER. (a) The suspension, revocation, or surrender of a
15-23 license issued under this chapter does not affect the obligation of
15-24 a contract between the license holder and a retail buyer entered
15-25 into before the suspension, revocation, or surrender.
15-26 (b) Surrender of a license does not affect the license
16-1 holder's civil or criminal liability for an act committed before
16-2 surrender.
16-3 Sec. 348.512. TRANSFER OR ASSIGNMENT OF LICENSE. A license
16-4 may be transferred or assigned only with the approval of the
16-5 commissioner.
16-6 Sec. 348.513. ADOPTION OF RULES. (a) The finance
16-7 commission may adopt rules to enforce this chapter.
16-8 (b) The commissioner shall recommend proposed rules to the
16-9 finance commission.
16-10 Sec. 348.514. EXAMINATION; ACCESS TO RECORDS. (a) At the
16-11 times the commissioner considers necessary, the commissioner or the
16-12 commissioner's representative shall:
16-13 (1) examine each place of business of each license
16-14 holder; and
16-15 (2) investigate the license holder's transactions and
16-16 records, including books, accounts, papers, and correspondence, to
16-17 the extent the transactions and records pertain to the business
16-18 regulated under this chapter.
16-19 (b) The license holder shall:
16-20 (1) give the commissioner or the commissioner's
16-21 representative free access to the license holder's office, place of
16-22 business, files, safes, and vaults; and
16-23 (2) allow the commissioner or the commissioner's
16-24 representative to make a copy of an item that may be investigated
16-25 under Subsection (a)(2).
16-26 (c) During an examination the commissioner or the
17-1 commissioner's representative may administer oaths and examine any
17-2 person under oath on any subject pertinent to a matter that the
17-3 commissioner is authorized or required to consider, investigate, or
17-4 secure information about under this chapter.
17-5 (d) Information obtained under this section is confidential.
17-6 (e) A license holder's violation of Subsection (b) is a
17-7 ground for the suspension or revocation of the license.
17-8 (f) An examination of a license holder's place of business
17-9 may be made only:
17-10 (1) after advance notice; and
17-11 (2) during normal business hours.
17-12 Sec. 348.515. GENERAL INVESTIGATION. To discover a
17-13 violation of this chapter or to obtain information required under
17-14 this chapter, the commissioner or the commissioner's representative
17-15 may investigate the records, including books, accounts, papers, and
17-16 correspondence, of a person, including a license holder, who the
17-17 commissioner has reasonable cause to believe is violating this
17-18 chapter, regardless of whether the person claims to not be subject
17-19 to this chapter.
17-20 Sec. 348.516. PAYMENT OF EXAMINATION COSTS AND
17-21 ADMINISTRATION EXPENSES. A license holder shall pay to the
17-22 commissioner an amount determined as provided by Section 14.107 and
17-23 assessed by the commissioner to cover the direct and indirect costs
17-24 of an examination and a proportionate share of general
17-25 administrative expenses.
17-26 Sec. 348.517. LICENSE HOLDER'S RECORDS. (a) A license
18-1 holder shall maintain a record of each retail installment
18-2 transaction made under this chapter as is necessary to enable the
18-3 commissioner to determine whether the license holder is complying
18-4 with this chapter.
18-5 (b) A license holder shall keep the record until the later
18-6 of:
18-7 (1) the third anniversary of the date the last payment
18-8 was made on the retail installment transaction; or
18-9 (2) the second anniversary of the date on which the
18-10 final entry is made in the record.
18-11 (c) A record described by Subsection (a) must be prepared
18-12 in accordance with accepted accounting practices.
18-13 (d) The commissioner shall accept a license holder's system
18-14 of records if the system discloses the information reasonably
18-15 required under Subsection (a).
18-16 (e) A license holder shall keep each obligation signed by a
18-17 retail buyer at an office in this state designated by the license
18-18 holder unless the obligation is transferred under an agreement that
18-19 gives the commissioner access to the obligation.
18-20 Sec. 348.518. SHARING OF INFORMATION. To ensure consistent
18-21 enforcement of law and minimization of regulatory burdens, the
18-22 commissioner and the Texas Department of Transportation may share
18-23 information, including criminal history information, relating to a
18-24 person licensed under this chapter. Information otherwise
18-25 confidential remains confidential after it is shared under this
18-26 section.
19-1 SECTION 15. Section 371.055, Finance Code, is amended to
19-2 read as follows:
19-3 Sec. 371.055. FEES; PROOF OF INSURANCE. An applicant must
19-4 submit with the application:
19-5 (1) an investigation fee of:
19-6 (A) $500 if the applicant does not hold a
19-7 license; or
19-8 (B) $250 if the application:
19-9 (i) is for an additional license for a
19-10 separate location; or
19-11 (ii) involves substantially identical
19-12 principals and owners of a licensed pawnshop at a separate
19-13 location;
19-14 (2) an annual fee in an amount determined as provided
19-15 by Section 14.107 [of $100]; and
19-16 (3) proof of general liability and fire insurance in a
19-17 reasonable amount and form required by the commissioner.
19-18 SECTION 16. Subsection (a), Section 371.064, Finance Code,
19-19 is amended to read as follows:
19-20 (a) Not later than December 1, a pawnbroker shall pay to the
19-21 commissioner for each license held an annual fee in an amount
19-22 determined as provided by Section 14.107 [of $125] for the year
19-23 beginning the next January 1.
19-24 SECTION 17. Subsection (c), Section 371.159, Finance Code,
19-25 is amended to read as follows:
19-26 (c) A pawn service charge may not exceed an amount equal to:
20-1 (1) 20 percent of the total amount financed for one
20-2 month if that amount is less than or equal to the amount computed
20-3 under Subchapter C, Chapter 341, using the reference amount of $30;
20-4 (2) 15 percent of the total amount financed for one
20-5 month if that amount is more than the amount computed for
20-6 Subdivision (1) but less than or equal to the amount computed under
20-7 Subchapter C, Chapter 341, using the reference amount of $200
20-8 [$100];
20-9 (3) 2 1/2 percent of the total amount financed for one
20-10 month if that amount is more than the amount computed for
20-11 Subdivision (2) but less than or equal to the amount computed under
20-12 Subchapter C, Chapter 341, using the reference amount of $300; or
20-13 (4) 1 percent of the total amount financed for one
20-14 month if that amount is more than the amount computed for
20-15 Subdivision (3).
20-16 SECTION 18. Section 371.169, Finance Code, is amended to
20-17 read as follows:
20-18 Sec. 371.169. UNREDEEMED PLEDGED GOODS; FORFEITURE. (a) A
20-19 pawnbroker shall hold pledged goods not redeemed by the pledgor on
20-20 or before the maturity date stated in the pawn ticket issued in
20-21 connection with a pawn transaction for at least 30 [60] days after
20-22 that date.
20-23 (b) On or before the 30th [60th] day after the original
20-24 maturity date, the pledgor may redeem the pledged goods by paying:
20-25 (1) the originally agreed redemption price; and
20-26 (2) an additional pawn service charge equal to
21-1 one-thirtieth of the original monthly pawn service charge for each
21-2 day after the original maturity date, including the day on which
21-3 the pledged goods are finally redeemed.
21-4 (c) Pledged goods not redeemed on or before the 30th [60th]
21-5 day after the original maturity date may, at the option of the
21-6 pawnbroker, be forfeited to the pawnbroker.
21-7 SECTION 19. Subsection (a), Section 411.095, Government
21-8 Code, is amended to read as follows:
21-9 (a) The consumer credit commissioner is entitled to obtain
21-10 from the department criminal history record information that
21-11 relates to a person who is[:]
21-12 [(1)] an applicant for or holder of a license under
21-13 Chapter 348 or 371, Finance Code[; or]
21-14 [(2) the holder of a license under that Act].
21-15 SECTION 20. Section 371.065, Finance Code, is repealed.
21-16 SECTION 21. Sections 348.401 and 348.402, Finance Code, are
21-17 repealed.
21-18 SECTION 22. The Finance Commission of Texas and the consumer
21-19 credit commissioner shall conduct a study of mortgage lending
21-20 practices with emphasis on identifying possible predatory and
21-21 discriminating lending patterns or practices. In conducting the
21-22 study, the agencies shall collect data from entities making
21-23 mortgage loans about mortgage loans using the data formats of the
21-24 Home Mortgage Disclosure Act of 1975 (12 U.S.C. Section 2801 et
21-25 seq.) and other data fields necessary to identify possible
21-26 predatory practices. In conducting the study, the agencies shall
22-1 also study and consider parameters that could be used to
22-2 consistently classify credit risk among mortgage loans for the
22-3 purpose of assessing possible predatory or discriminatory lending
22-4 practices. The agencies shall prepare a report detailing the
22-5 findings and recommendations resulting from the study and deliver
22-6 the report to the lieutenant governor, the speaker of the house of
22-7 representatives, and legislative committees dealing with lending
22-8 entities before December 1, 2002.
22-9 SECTION 23. This Act takes effect September 1, 2001, except:
22-10 (1) Section 21 of this Act takes effect September 1,
22-11 2002; and
22-12 (2) the requirement that a person hold a license under
22-13 Subchapter F, Chapter 348, Finance Code, as added by this Act,
22-14 applies only on and after September 1, 2002.