S.B. No. 1620 |
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relating to examinations by the consumer credit commissioner with | ||
regard to the regulation of property tax lenders and certain other | ||
lenders and debt management counselors. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 351.004, Finance Code, as added by | ||
Chapter 1220 (H.B. 2138), Acts of the 80th Legislature, Regular | ||
Session, 2007, is amended to read as follows: | ||
Sec. 351.004. AFFILIATED BUSINESS ARRANGEMENTS. A property | ||
tax lender may conduct business under this chapter in an office, | ||
office suite, room, or place of business in which any other business | ||
is conducted or in combination with any other business unless the | ||
commissioner: | ||
(1) determines after a hearing that the conduct of the | ||
other business in that office, office suite, room, or place of | ||
business has concealed an evasion of this chapter; and | ||
(2) orders the lender in writing to desist from the | ||
conduct of the other business in that office, office suite, room, or | ||
place of business [ |
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SECTION 2. Subchapter A, Chapter 351, Finance Code, as | ||
added by Chapter 1220 (H.B. 2138), Acts of the 80th Legislature, | ||
Regular Session, 2007, is amended by adding Sections 351.008 | ||
through 351.011 to read as follows: | ||
Sec. 351.008. EXAMINATION OF LENDERS; ACCESS TO RECORDS. | ||
(a) The commissioner or the commissioner's representative shall, | ||
at the times the commissioner or the representative considers | ||
necessary: | ||
(1) examine each place of business of each property | ||
tax lender; and | ||
(2) investigate the lender's transactions, including | ||
loans, and records, including books, accounts, papers, and | ||
correspondence, to the extent the transactions and records pertain | ||
to the business regulated under this chapter and Sections 32.06 and | ||
32.065, Tax Code. | ||
(b) The property tax lender shall: | ||
(1) give the commissioner or the commissioner's | ||
representative free access to the lender's office, place of | ||
business, files, safes, and vaults; and | ||
(2) allow the commissioner or the representative to | ||
make a copy of an item that may be investigated under Subsection | ||
(a)(2). | ||
(c) During an examination, the commissioner or the | ||
commissioner's representative may administer oaths and examine any | ||
person under oath on any subject pertinent to a matter that the | ||
commissioner or the representative is authorized or required to | ||
consider, investigate, or secure information about under this | ||
chapter or Section 32.06 or 32.065, Tax Code. | ||
(d) Information obtained under this section is | ||
confidential. | ||
(e) A property tax lender's violation of Subsection (b) is a | ||
ground for the suspension or revocation of the lender's license. | ||
Sec. 351.009. GENERAL INVESTIGATION. (a) To discover a | ||
violation of this chapter or Section 32.06 or 32.065, Tax Code, or | ||
to obtain information required under this chapter or Section 32.06 | ||
or 32.065, Tax Code, the commissioner or the commissioner's | ||
representative may investigate the records, including books, | ||
accounts, papers, and correspondence, of a person, including a | ||
property tax lender, who the commissioner or the representative has | ||
reasonable cause to believe is violating this chapter or Section | ||
32.06 or 32.065, Tax Code, regardless of whether the person claims | ||
to not be subject to this chapter or Section 32.06 or 32.065, Tax | ||
Code. | ||
(b) For the purposes of this section, a person who | ||
advertises, solicits, or otherwise represents that the person is | ||
willing to make a property tax loan is presumed to be engaged in the | ||
business described by Section 351.051. | ||
Sec. 351.010. REFUSAL TO ALLOW EXAMINATION OR INSPECTION. | ||
A property tax lender who fails or refuses to permit an examination | ||
or investigation authorized by this subchapter violates this | ||
chapter. The failure or refusal is grounds for the suspension or | ||
revocation of the lender's license. | ||
Sec. 351.011. VERIFICATION OF NET ASSETS. If the | ||
commissioner questions the amount of a property tax lender's net | ||
assets, the commissioner may require certification by an | ||
independent certified public accountant that: | ||
(1) the accountant has reviewed the property tax | ||
lender's books, other records, and transactions during the | ||
reporting year; | ||
(2) the books and other records are maintained using | ||
generally accepted accounting principles; and | ||
(3) the property tax lender meets the net assets | ||
requirement of Section 351.153. | ||
SECTION 3. Subchapter E, Chapter 14, Finance Code, is | ||
amended by adding Section 14.2015 to read as follows: | ||
Sec. 14.2015. CONFIDENTIALITY OF CERTAIN INFORMATION. | ||
(a) Except as provided by Subsection (b), information or material | ||
obtained or compiled by the commissioner in relation to an | ||
examination by the commissioner or the commissioner's | ||
representative of a license holder or registrant under Subtitle B | ||
or C, Title 4, or Chapter 394 is confidential and may not be | ||
disclosed by the commissioner or an officer or employee of the | ||
Office of Consumer Credit Commissioner, including: | ||
(1) information obtained from a license holder or | ||
registrant under Subtitle B or C, Title 4, or Chapter 394; | ||
(2) work performed by the commissioner or the | ||
commissioner's representative on information obtained from a | ||
license holder or registrant for the purposes of an examination | ||
conducted under Subtitle B or C, Title 4, or Chapter 394; | ||
(3) a report on an examination of a license holder or | ||
registrant conducted under Subtitle B or C, Title 4, or Chapter 394; | ||
and | ||
(4) any written communications between the license | ||
holder or registrant, as applicable, and the commissioner or the | ||
commissioner's representative relating to or referencing an | ||
examination conducted under Subtitle B or C, Title 4, or Chapter | ||
394. | ||
(b) The commissioner or the commissioner's representative | ||
may disclose the confidential information or material described by | ||
Subsection (a): | ||
(1) to a department, agency, or instrumentality of | ||
this state or the United States if the commissioner considers | ||
disclosure to be necessary or proper to the enforcement of the laws | ||
of this state or the United States and in the best interest of the | ||
public; | ||
(2) if the license holder or registrant consents to | ||
the release of the information or has published the information | ||
contained in the release; or | ||
(3) if the commissioner determines that release of the | ||
information is required for an administrative hearing. | ||
SECTION 4. Subsection (a-4), Section 32.06, Tax Code, is | ||
amended to read as follows: | ||
(a-4) The Finance Commission of Texas shall: | ||
(1) prescribe the form and content of an appropriate | ||
disclosure statement to be provided to a property owner before the | ||
execution of a tax lien transfer; [ |
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(2) adopt rules relating to the reasonableness of | ||
closing costs, fees, and other charges permitted under this | ||
section; and | ||
(3) by rule prescribe the form and content of the sworn | ||
document under Subsection (a-1) and the certified statement under | ||
Subsection (b). | ||
SECTION 5. This Act takes effect September 1, 2009. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1620 passed the Senate on | ||
April 23, 2009, by the following vote: Yeas 30, Nays 0; and that | ||
the Senate concurred in House amendment on June 1, 2009, by the | ||
following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1620 passed the House, with | ||
amendment, on May 26, 2009, by the following vote: Yeas 140, | ||
Nays 0, one present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |