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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of property tax lenders and the |
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confidentiality of certain information obtained or compiled by the |
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consumer credit commissioner on examination of property tax lenders |
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and certain other license holders or registrants. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 14, Finance Code, is |
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amended by adding Section 14.2015 to read as follows: |
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Sec. 14.2015. CONFIDENTIALITY OF CERTAIN INFORMATION. (a) |
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Except as provided by Subsection (b), information or material |
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obtained or compiled by the commissioner in relation to an |
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examination by the commissioner or the commissioner's |
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representative of a license holder or registrant under Subtitle B |
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or C, Title 4, or Chapter 394 is confidential and may not be |
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disclosed by the commissioner or an officer or employee of the |
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Office of Consumer Credit Commissioner, including: |
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(1) information obtained from a license holder or |
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registrant under Subtitle B or C, Title 4, or Chapter 394; |
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(2) work performed by the commissioner or the |
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commissioner's representative on information obtained from a |
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license holder or registrant for the purposes of an examination |
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conducted under Subtitle B or C, Title 4, or Chapter 394; |
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(3) a report on an examination of a license holder or |
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registrant conducted under Subtitle B or C, Title 4, or Chapter 394; |
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and |
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(4) any written communications between the license |
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holder or registrant, as applicable, and the commissioner or the |
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commissioner's representative relating to or referencing an |
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examination conducted under Subtitle B or C, Title 4, or Chapter |
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394. |
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(b) The commissioner or the commissioner's representative |
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may disclose the confidential information or material described by |
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Subsection (a): |
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(1) to a department, agency, or instrumentality of |
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this state or the United States if the commissioner considers |
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disclosure to be necessary or proper to the enforcement of the laws |
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of this state or the United States and in the best interest of the |
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public; |
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(2) if the license holder or registrant consents to |
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the release of the information or has published the information |
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contained in the release; or |
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(3) if the commissioner determines that release of the |
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information is required for an administrative hearing. |
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SECTION 2. Section 351.004, Finance Code, as added by |
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Chapter 1220 (H.B. 2138), Acts of the 80th Legislature, Regular |
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Session, 2007, is amended to read as follows: |
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Sec. 351.004. AFFILIATED BUSINESS ARRANGEMENTS. A property |
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tax lender may conduct business under this chapter in an office, |
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office suite, room, or place of business in which any other business |
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is conducted or in combination with any other business unless the |
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commissioner: |
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(1) determines after a hearing that the conduct of the |
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other business in that office, office suite, room, or place of |
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business has concealed an evasion of this chapter; and |
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(2) orders the lender in writing to desist from the |
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conduct of the other business in that office, office suite, room, or |
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place of business. [This chapter may not be construed to prevent
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affiliated or controlled business arrangements or loan origination
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services by or between a property tax lender and other
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professionals.] |
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SECTION 3. Subchapter A, Chapter 351, Finance Code, as |
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added by Chapter 1220 (H.B. 2138), Acts of the 80th Legislature, |
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Regular Session, 2007, is amended by adding Sections 351.008 |
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through 351.011 to read as follows: |
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Sec. 351.008. EXAMINATION OF LENDERS; ACCESS TO RECORDS. |
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(a) The commissioner or the commissioner's representative shall, |
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at the times the commissioner or the representative considers |
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necessary: |
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(1) examine each place of business of each property |
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tax lender; and |
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(2) investigate the lender's transactions, including |
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loans, and records, including books, accounts, papers, and |
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correspondence, to the extent the transactions and records pertain |
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to the business regulated under this chapter and Sections 32.06 and |
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32.065, Tax Code. |
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(b) The property tax lender shall: |
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(1) give the commissioner or the commissioner's |
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representative free access to the lender's office, place of |
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business, files, safes, and vaults; and |
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(2) allow the commissioner or the representative to |
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make a copy of an item that may be investigated under Subsection |
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(a)(2). |
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(c) During an examination, the commissioner or the |
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commissioner's representative may administer oaths and examine any |
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person under oath on any subject pertinent to a matter that the |
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commissioner or the representative is authorized or required to |
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consider, investigate, or secure information about under this |
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chapter or Section 32.06 or 32.065, Tax Code. |
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(d) Information obtained under this section is |
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confidential. |
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(e) A property tax lender's violation of Subsection (b) is a |
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ground for the suspension or revocation of the lender's license. |
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Sec. 351.009. GENERAL INVESTIGATION. (a) To discover a |
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violation of this chapter or Section 32.06 or 32.065, Tax Code, or |
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to obtain information required under this chapter or Section 32.06 |
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or 32.065, Tax Code, the commissioner or the commissioner's |
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representative may investigate the records, including books, |
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accounts, papers, and correspondence, of a person, including a |
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property tax lender, who the commissioner or the representative has |
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reasonable cause to believe is violating this chapter or Section |
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32.06 or 32.065, Tax Code, regardless of whether the person claims |
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to not be subject to this chapter or Section 32.06 or 32.065, Tax |
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Code. |
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(b) For the purposes of this section, a person who |
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advertises, solicits, or otherwise represents that the person is |
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willing to make a property tax loan is presumed to be engaged in the |
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business described by Section 351.051. |
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Sec. 351.010. REFUSAL TO ALLOW EXAMINATION OR INSPECTION. |
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A property tax lender who fails or refuses to permit an examination |
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or investigation authorized by this subchapter violates this |
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chapter. The failure or refusal is grounds for the suspension or |
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revocation of the lender's license. |
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Sec. 351.011. VERIFICATION OF NET ASSETS. If the |
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commissioner questions the amount of a property tax lender's net |
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assets, the commissioner may require certification by an |
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independent certified public accountant that: |
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(1) the accountant has reviewed the property tax |
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lender's books, other records, and transactions during the |
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reporting year; |
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(2) the books and other records are maintained using |
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generally accepted accounting principles; and |
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(3) the property tax lender meets the net assets |
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requirement of Section 351.153. |
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SECTION 4. Section 32.06(a-4), Tax Code, is amended to read |
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as follows: |
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(a-4) The Finance Commission of Texas shall: |
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(1) prescribe the form and content of an appropriate |
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disclosure statement to be provided to a property owner before the |
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execution of a tax lien transfer; [and] |
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(2) adopt rules relating to the reasonableness of |
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closing costs, fees, and other charges permitted under this |
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section; and |
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(3) by rule prescribe the form and content of the sworn |
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document under Subsection (a-1) and the certified statement under |
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Subsection (b). |
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SECTION 5. This Act takes effect September 1, 2009. |
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