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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 services organizations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 393.001, Finance Code, is amended by |
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adding Subdivision (5) to read as follows: |
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(5) "Office" means the Office of Consumer Credit |
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Commissioner. |
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SECTION 2. Sections 393.101(a) and (c), Finance Code, are |
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amended to read as follows: |
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(a) Before conducting business in this state, a credit |
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services organization shall register with the office [secretary of
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state] by filing a statement that: |
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(1) contains the name and address of: |
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(A) the organization; and |
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(B) each person who directly or indirectly owns |
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or controls at least 10 percent of the outstanding shares of stock |
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in the organization; and |
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(2) fully discloses any litigation or unresolved |
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complaint relating to the operation of the organization filed with |
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a governmental authority of this state or contains a notarized |
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statement that there has been no litigation or unresolved complaint |
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of that type. |
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(c) The office [secretary of state] may not require an |
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organization to provide information other than information |
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contained in the registration statement. |
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SECTION 3. Section 393.104, Finance Code, is amended to |
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read as follows: |
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Sec. 393.104. FILING FEE. The office [secretary of state] |
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may charge a credit services organization a reasonable fee to cover |
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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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SECTION 4. Section 393.401(b), Finance Code, is amended to |
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read as follows: |
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(b) A copy of the bond shall be filed with the office |
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[secretary of state]. |
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SECTION 5. Section 393.402(b), Finance Code, is amended to |
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read as follows: |
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(b) The name of the depository and the trustee and the |
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account number of the surety account must be filed with the office |
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[secretary of state]. |
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SECTION 6. Section 393.407, Finance Code, is amended to |
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read as follows: |
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Sec. 393.407. PAYMENT OF MONEY IN SURETY ACCOUNT TO CREDIT |
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SERVICES ORGANIZATION. (a) A depository may not pay money in a |
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surety account to the credit services organization that established |
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the account or a representative of the organization unless the |
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organization or representative presents a statement issued by the |
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office [secretary of state] indicating that the requirement of |
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Section 393.406 has been satisfied in relation to the account. |
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(b) The office [secretary of state] may conduct an |
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investigation and require information to be submitted as necessary |
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to enforce this section. |
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SECTION 7. Section 393.101(d), Finance Code, is repealed. |
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SECTION 8. (a) On the effective date of this Act: |
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(1) all functions and activities performed by the |
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secretary of state that relate to the registration of credit |
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services organizations under Chapter 393, Finance Code, |
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immediately before that date are transferred to the Office of |
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Consumer Credit Commissioner; |
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(2) a rule or form adopted by the secretary of state |
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that relates to the registration of credit services organizations |
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under Chapter 393, Finance Code, is a rule or form of the Office of |
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Consumer Credit Commissioner and remains in effect until altered by |
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the Office of Consumer Credit Commissioner; |
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(3) a reference in law to the secretary of state that |
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relates to the registration of credit services organizations under |
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Chapter 393, Finance Code, means the Office of Consumer Credit |
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Commissioner; |
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(4) a proceeding involving the secretary of state that |
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relates to the registration of credit services organizations under |
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Chapter 393, Finance Code, is transferred without change in status |
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to the Office of Consumer Credit Commissioner, and the office |
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assumes without a change in status the position of the secretary of |
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state in a proceeding relating to the registration of credit |
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services organizations to which the secretary of state is a party; |
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(5) all money, contracts, leases, rights, and |
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obligations of the secretary of state that relate to the |
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registration of credit services organizations under Chapter 393, |
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Finance Code, are transferred to the Office of Consumer Credit |
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Commissioner; |
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(6) all property, including records, in the custody of |
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the secretary of state that relates to the registration of credit |
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services organizations under Chapter 393, Finance Code, becomes |
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property of the Office of Consumer Credit Commissioner; and |
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(7) all funds appropriated by the legislature to the |
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secretary of state that relate to the registration of credit |
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services organizations under Chapter 393, Finance Code, are |
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transferred to the Office of Consumer Credit Commissioner. |
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(b) Money collected by the secretary of state for fees |
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related to registration statements and renewal applications |
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pending before the secretary of state on the effective date of this |
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Act are transferred to the Office of Consumer Credit Commissioner |
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on that date. The fees may not be assessed again for the same |
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statement. |
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SECTION 9. This Act takes effect September 1, 2009. |