| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the regulation of credit services organizations; |
|
|
providing a civil penalty. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 393.101, Finance Code, is amended by |
|
|
amending Subsection (a) and adding Subsection (a-1) to read as |
|
|
follows: |
|
|
(a) Before conducting business in this state, a credit |
|
|
services organization shall register with the 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; and |
|
|
(3) contains the address of each location in this |
|
|
state at which the organization will conduct business. |
|
|
(a-1) A separate registration certificate is required for |
|
|
each location in this state from which a credit services |
|
|
organization conducts business. |
|
|
SECTION 2. Section 393.104, Finance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 393.104. FEES [FILING FEE]. (a) The 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. |
|
|
(b) In addition to charging a fee for filing a registration |
|
|
statement, the secretary of state may charge a credit services |
|
|
organization a reasonable fee in an amount not to exceed $100 to |
|
|
issue a registration certificate for multiple business locations as |
|
|
required by Section 393.101(a-1). |
|
|
SECTION 3. Subchapter F, Chapter 393, Finance Code, is |
|
|
amended by adding Section 393.506 to read as follows: |
|
|
Sec. 393.506. CIVIL PENALTY. (a) A credit services |
|
|
organization that fails to register as required by Section 393.101 |
|
|
is subject to a civil penalty of $5,000 for each violation. Each |
|
|
business location that an organization fails to register under |
|
|
Section 393.101(a-1) constitutes a separate violation for purposes |
|
|
of this subsection. |
|
|
(b) The attorney general or a district or county attorney of |
|
|
a jurisdiction in which an unregistered business location of a |
|
|
credit services organization is located may file an action on |
|
|
behalf of the state to collect a civil penalty under this section. |
|
|
SECTION 4. The changes in law made by this Act to Chapter |
|
|
393, Finance Code, apply only to an original registration issued or |
|
|
a registration renewed on or after the effective date of this Act. |
|
|
An original registration issued or a registration renewed before |
|
|
the effective date of this Act is governed by the law in effect on |
|
|
the date the registration was issued or renewed, and the former law |
|
|
is continued in effect for that purpose. |
|
|
SECTION 5. This Act takes effect September 1, 2009. |