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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of the consumer credit education |
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grant program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 393.104, Finance Code, is amended to |
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read as follows: |
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Sec. 393.104. FEES [FILING FEE]. (a) The secretary of |
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state may charge a credit services organization a reasonable fee to |
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cover the cost of filing a registration statement or renewal |
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application in an amount not to exceed $100. |
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(b) In addition to the fee under Subsection (a), the |
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secretary of state shall charge a credit services organization a |
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fee of $100 to be deposited to the credit of the consumer credit |
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education grant fund established under Subchapter C-1, Chapter 14. |
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SECTION 2. Chapter 14, Finance Code, is amended by adding |
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Subchapter C-1 to read as follows: |
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SUBCHAPTER C-1. CONSUMER CREDIT EDUCATION GRANT PROGRAM |
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Sec. 14.131. CONSUMER CREDIT EDUCATION GRANT PROGRAM. The |
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office shall establish and administer the consumer credit education |
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grant program to provide grants to eligible nonprofit entities that |
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apply to the office in the manner prescribed by the office. The |
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purpose of the program is to provide grants to enable eligible |
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nonprofit entities to provide financial education and low-cost, |
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small-dollar loans to consumers. |
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Sec. 14.132. ELIGIBILITY FOR GRANT. To be eligible for a |
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grant under the program established under Section 14.131, a |
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nonprofit entity must: |
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(1) be performing its activities primarily in this |
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state; |
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(2) be in good standing under the laws of the state in |
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which the entity was formed or organized, as evidenced by a |
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certificate issued by the secretary of state or the state official |
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having custody of the records pertaining to entities or other |
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organizations formed under the laws of that state; and |
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(3) maintain or plan to establish a loan program that |
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the office certifies contains the following components: |
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(A) an automatic savings feature; |
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(B) access to financial education; |
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(C) loan amounts up to $1,000; |
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(D) affordable pricing, including an annual |
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percentage rate of 36 percent or less and fees; |
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(E) minimal, if any, charges, including an annual |
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fee, membership fee, advance fee, or prepayment penalty; and |
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(F) for repayment: |
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(i) a 90-day or longer term; |
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(ii) multiple installments with payment |
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periods extending beyond 31 days; and |
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(iii) no balloon payment. |
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Sec. 14.133. LIMIT ON AMOUNT OF GRANT. The office may not |
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award a grant under this subchapter that is greater than an amount |
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equal to 10 percent of the amount of the consumer credit education |
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grant fund. |
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Sec. 14.134. RULES. The finance commission shall adopt |
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rules as necessary for the administration of this subchapter. |
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Sec. 14.135. CONSUMER CREDIT EDUCATION GRANT FUND. (a) The |
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consumer credit education grant fund is a dedicated account in the |
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general revenue fund. |
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(b) The following amounts shall be deposited in the fund: |
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(1) the fee collected under Section 393.104; |
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(2) interest earned on the investment of money in the |
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fund; and |
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(3) gifts, grants, and other donations received for |
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the grant program established under Section 14.131. |
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(c) The fund may be used only to award grants to eligible |
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entities as provided by this subchapter and to cover the costs of |
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administering the grant program. |
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SECTION 3. As soon as practicable after the effective date |
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of this Act, the Finance Commission of Texas shall adopt rules for |
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the administration of the consumer credit education grant program |
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under Subchapter C-1, Chapter 14, Finance Code, as added by this |
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Act. |
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SECTION 4. Section 393.104(b), Finance Code, as added by |
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this Act, applies only to a registration statement filed or renewed |
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on or after the effective date of this Act. |
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SECTION 5. This Act takes effect September 1, 2009. |