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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of credit reporting bureaus; providing |
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penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle E, Title 3, Finance Code, is amended by |
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adding Chapter 158 to read as follows: |
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CHAPTER 158. CREDIT REPORTING BUREAUS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 158.001. DEFINITIONS. In this chapter: |
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(1) "Commissioner" means the banking commissioner of |
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Texas. |
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(2) "Credit reporting bureau" means a person who |
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engages in the practice of assembling or reporting credit |
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information about individuals for the purpose of furnishing the |
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information to a third party. |
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(3) "Department" means the Texas Department of |
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Banking. |
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(4) "Principal," in connection with management of a |
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license holder or applicant, means a person who performs executive |
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functions or otherwise controls the executive affairs of a license |
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holder, including an owner, officer, director, partner, trustee, or |
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manager of the license holder. |
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[Sections 158.002-158.100 reserved for expansion] |
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SUBCHAPTER B. POWERS AND DUTIES OF DEPARTMENT AND COMMISSION |
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Sec. 158.101. ADMINISTRATION. The department shall |
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administer this chapter. |
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Sec. 158.102. RULES. (a) The Finance Commission of Texas |
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may: |
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(1) adopt rules necessary to enforce and administer |
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this chapter, including rules relating to an application for a |
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license; and |
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(2) adopt rules to accomplish the purposes of Chapter |
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20, Business & Commerce Code, and any other law applicable to a |
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credit reporting bureau, including rules reasonable or necessary |
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to: |
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(A) implement and clarify Chapter 20, Business & |
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Commerce Code; and |
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(B) defray the cost of enforcing Chapter 20, |
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Business & Commerce Code, and any other law applicable to a credit |
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reporting bureau. |
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(b) In adopting rules under this section, the Finance |
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Commission of Texas shall consider the necessity to: |
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(1) promote a stable consumer reporting environment; |
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and |
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(2) provide adequate protection to consumers and their |
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personal identifying information. |
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[Sections 158.103-158.200 reserved for expansion] |
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SUBCHAPTER C. APPLICATION FOR AND ISSUANCE OF LICENSE |
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Sec. 158.201. LICENSE REQUIREMENT. A credit reporting |
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bureau may not engage in the practice of assembling or reporting |
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credit information about individuals in this state for the purpose |
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of furnishing the information to a third party, as a service or for |
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consideration, unless the credit reporting bureau holds a license |
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issued under this chapter. |
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Sec. 158.202. APPLICATION. (a) An application for a |
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license must be in writing, sworn to, and filed with the |
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commissioner in the form the commissioner prescribes. |
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(b) The application must: |
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(1) state the full legal name, federal taxpayer |
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identification number or social security number, and business |
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address of: |
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(A) the applicant; |
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(B) each individual who is a principal of the |
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applicant; and |
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(C) each individual who is a principal of any |
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person that is a principal of the applicant; and |
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(2) disclose any other information that may be |
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required by rule or reasonably requested by the commissioner. |
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Sec. 158.203. ACCOMPANYING FEE, STATEMENTS, AND BOND. An |
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application for a license must be accompanied by: |
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(1) a nonrefundable application fee in an amount |
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established by rule that is sufficient to administer this chapter; |
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(2) audited financial statements of the applicant that |
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are reasonably satisfactory to the commissioner; |
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(3) the location of the home office of the applicant |
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and of the main office of the applicant in this state; and |
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(4) a surety bond in the amount of $100,000 that is: |
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(A) in a form satisfactory to the commissioner; |
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and |
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(B) issued by a bonding company or insurance |
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company authorized to do business in this state. |
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Sec. 158.204. ISSUANCE OF LICENSE. On the filing of an |
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application that meets the requirements of Sections 158.202 and |
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158.203, the commissioner shall issue a license to the applicant if |
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the commissioner: |
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(1) approves the documents; and |
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(2) finds that the bond is in the prescribed amount. |
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Sec. 158.205. DENIAL OF LICENSE; HEARING. (a) A hearing |
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must be held before a license may be denied. |
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(b) The commissioner shall give the applicant notice of the |
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hearing. |
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[Sections 158.206-158.300 reserved for expansion] |
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SUBCHAPTER D. REQUIREMENTS TO MAINTAIN LICENSE |
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Sec. 158.301. INSUFFICIENT BOND. (a) If the commissioner |
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at any time reasonably determines that the bond required by this |
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chapter is insecure or deficient in amount, the commissioner by |
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written order may require the license holder to file a new or |
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supplemental bond to secure compliance with this chapter. |
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(b) The license holder shall comply with the order not later |
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than the 30th day after the date on which the order is served. |
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Sec. 158.302. ANNUAL LICENSE FEE. (a) Not later than June |
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30 of each year, a license holder shall pay to the commissioner a |
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license renewal fee in an amount established by rule. |
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(b) The fee required by Section 158.203(1) satisfies the |
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license fee requirement for the first license year or part of that |
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year. |
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Sec. 158.303. REVOCATION OF LICENSE. (a) The commissioner |
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may revoke a license: |
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(1) on a ground on which the commissioner may refuse to |
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grant a license; or |
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(2) for a violation of this chapter. |
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(b) The commissioner may investigate the business and |
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records of a license holder if the commissioner has reasonable |
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cause to believe that grounds for revocation exist. |
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Sec. 158.304. HEARING ON LICENSE REVOCATION. (a) The |
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commissioner shall give a license holder an opportunity for a |
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hearing before a license may be revoked. |
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(b) The commissioner shall give the license holder notice of |
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the hearing. |
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[Sections 158.305-158.400 reserved for expansion] |
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SUBCHAPTER E. CRIMINAL PENALTIES AND CIVIL REMEDIES |
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Sec. 158.401. CRIMINAL PENALTY. (a) A person commits an |
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offense if the person intentionally: |
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(1) makes an untrue statement of a material fact in an |
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application or report required to be filed with the commissioner |
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under this chapter; or |
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(2) violates Section 158.201. |
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(b) An offense under this section is a third degree felony. |
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Sec. 158.402. ADMINISTRATIVE PENALTY. (a) The |
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commissioner may impose an administrative penalty on a person in an |
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amount specified by the commissioner if, after notice and hearing, |
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the commissioner finds the person has violated: |
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(1) this chapter; |
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(2) a rule adopted under this chapter; or |
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(3) an order of the commissioner issued under this |
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chapter. |
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(b) The amount of the penalty may not exceed: |
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(1) $1,000 for each violation; or |
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(2) $1,000 for each day the violation continues. |
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Sec. 158.403. SUIT BY ATTORNEY GENERAL. The attorney |
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general may sue on behalf of claimants on the bond required by |
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Section 158.203(4) in a district court in Travis County, either in |
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one action or successive actions. |
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SECTION 2. This Act takes effect September 1, 2007. |