By:  Shapleigh                                                    S.B. No. 1479
	(In the Senate - Filed March 10, 2005; March 21, 2005, read 
first time and referred to Committee on Veteran Affairs and 
Military Installations; April 4, 2005, reported favorably by the 
following vote:  Yeas 4, Nays 0; April 4, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to deferred presentment transactions of certain military 
personnel or their spouses.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 342, Finance Code, is amended by adding 
Subchapter M to read as follows:

SUBCHAPTER M.  DEFERRED PRESENTMENT TRANSACTIONS
	Sec. 342.601.  DEFINITIONS.  In this subchapter:                        
		(1)  "Lender" means a lender licensed under this 
chapter.            
		(2)  "Member of the United States military" means:                     
			(A)  a member of the armed forces of the United 
States; or          
			(B)  a member of the Texas National Guard who is 
called to federal active duty.
	Sec. 342.602.  DISCLOSURES TO MILITARY BORROWERS.  Before 
engaging in a deferred presentment transaction, a lender shall 
provide to a customer who is a member of the United States military 
or the member's spouse a written statement that clearly and 
conspicuously states that:
		(1)  the lender is prohibited by law from:                             
			(A)  garnishing the wages of any borrower, 
including a borrower who is a member of the United States military;
			(B)  conducting any collection activity against a 
borrower who is:  
				(i)  a member of the armed forces of the 
United States who is deployed to combat or a combat support posting, 
for the duration of the posting;
				(ii)  a member of the Texas National Guard 
who is called to federal active duty, for the duration of the duty;
				(iii)  the spouse of a person described by 
Paragraph (i), for the duration of the posting; or
				(iv)  the spouse of a person described by 
Paragraph (ii), for the duration of the duty; or
			(C)  from contacting the employer of a member of 
the United States military about a deferred presentment debt of the 
member or the member's spouse;
		(2)  the lender shall honor the terms of a repayment 
agreement entered into with a member of the United States military 
or the member's spouse, including a repayment agreement negotiated 
through military counselors or third-party credit counselors; and
		(3)  the lender shall honor any statement made by a 
commanding officer of a member of the United States military 
declaring any location where deferred presentment transaction 
business is to be conducted by the lender to be a place at which a 
member of the United States military or the member's spouse is 
prohibited from transacting business.
	Sec. 342.603.  PROHIBITED PRACTICES.  A lender may not 
contact the employer of a member of the United States military about 
a deferred presentment debt of the member or the member's spouse.
	Sec. 342.604.  MILITARY BORROWER.  (a)  A lender may not 
engage in collection activity against a borrower who is:
		(1)  a member of the armed forces of the United States 
who is deployed to combat or a combat support posting, for the 
duration of the posting;
		(2)  a member of the Texas National Guard who is called 
to federal active duty, for the duration of the duty;
		(3)  the spouse of a person described by Subdivision 
(1), for the duration of the posting; or
		(4)  the spouse of a person described by Subdivision 
(2), for the duration of the duty.
	(b)  A lender may not garnish the wages of a borrower who is a 
member of the United States military or the member's spouse.
	Sec. 342.605.  REPAYMENT AGREEMENT.  With respect to a 
deferred presentment transaction, a lender shall honor a repayment 
agreement entered into with a borrower who is a member of the United 
States military or the member's spouse, including a repayment 
agreement negotiated through a military counselor or a third-party 
credit counselor.
	SECTION 2.  This Act takes effect September 1, 2005.                           



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