81R10472 KFF-D

By: Farias H.B. No. 3772

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of credit services organizations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 393.001, Finance Code, is amended by adding Subdivision (5) to read as follows:

(5) "Office" means the Office of Consumer Credit Commissioner.

SECTION 2. Sections 393.101(a) and (c), Finance Code, are amended to read as follows:

(a) Before conducting business in this state, a credit services organization shall register with the office [secretary of state] by filing a statement that:

(1) contains the name and address of:

(A) the organization; and

(B) each person who directly or indirectly owns or controls at least 10 percent of the outstanding shares of stock in the organization; and

(2) fully discloses any litigation or unresolved complaint relating to the operation of the organization filed with a governmental authority of this state or contains a notarized statement that there has been no litigation or unresolved complaint of that type.

(c) The office [secretary of state] may not require an organization to provide information other than information contained in the registration statement.

SECTION 3. Section 393.104, Finance Code, is amended to read as follows:

Sec. 393.104. FILING FEE. The office [secretary of state] may charge a credit services organization a reasonable fee to cover the cost of filing a registration statement [or renewal application] in an amount not to exceed $100.

SECTION 4. Section 393.401(b), Finance Code, is amended to read as follows:

(b) A copy of the bond shall be filed with the office [secretary of state].

SECTION 5. Section 393.402(b), Finance Code, is amended to read as follows:

(b) The name of the depository and the trustee and the account number of the surety account must be filed with the office [secretary of state].

SECTION 6. Section 393.407, Finance Code, is amended to read as follows:

Sec. 393.407. PAYMENT OF MONEY IN SURETY ACCOUNT TO CREDIT SERVICES ORGANIZATION. (a) A depository may not pay money in a surety account to the credit services organization that established the account or a representative of the organization unless the organization or representative presents a statement issued by the office [secretary of state] indicating that the requirement of Section 393.406 has been satisfied in relation to the account.

(b) The office [secretary of state] may conduct an investigation and require information to be submitted as necessary to enforce this section.

SECTION 7. Section 393.101(d), Finance Code, is repealed.

SECTION 8. (a) On the effective date of this Act:

(1) all functions and activities performed by the secretary of state that relate to the registration of credit services organizations under Chapter 393, Finance Code, immediately before that date are transferred to the Office of Consumer Credit Commissioner;

(2) a rule or form adopted by the secretary of state that relates to the registration of credit services organizations under Chapter 393, Finance Code, is a rule or form of the Office of Consumer Credit Commissioner and remains in effect until altered by the Office of Consumer Credit Commissioner;

(3) a reference in law to the secretary of state that relates to the registration of credit services organizations under Chapter 393, Finance Code, means the Office of Consumer Credit Commissioner;

(4) a proceeding involving the secretary of state that relates to the registration of credit services organizations under Chapter 393, Finance Code, is transferred without change in status to the Office of Consumer Credit Commissioner, and the office assumes without a change in status the position of the secretary of state in a proceeding relating to the registration of credit services organizations to which the secretary of state is a party;

(5) all money, contracts, leases, rights, and obligations of the secretary of state that relate to the registration of credit services organizations under Chapter 393, Finance Code, are transferred to the Office of Consumer Credit Commissioner;

(6) all property, including records, in the custody of the secretary of state that relates to the registration of credit services organizations under Chapter 393, Finance Code, becomes property of the Office of Consumer Credit Commissioner; and

(7) all funds appropriated by the legislature to the secretary of state that relate to the registration of credit services organizations under Chapter 393, Finance Code, are transferred to the Office of Consumer Credit Commissioner.

(b) Money collected by the secretary of state for fees related to registration statements and renewal applications pending before the secretary of state on the effective date of this Act are transferred to the Office of Consumer Credit Commissioner on that date. The fees may not be assessed again for the same statement.

SECTION 9. This Act takes effect September 1, 2009.