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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of persons who facilitate the issuance |
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of tax refund anticipation checks. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 352, Finance Code, is |
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amended to read as follows: |
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CHAPTER 352. TAX REFUND ANTICIPATION LOANS AND TAX REFUND |
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ANTICIPATION CHECKS |
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SECTION 2. Section 352.001, Finance Code, is amended by |
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adding Subdivisions (1-a) and (3-a) and amending Subdivision (2) to |
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read as follows: |
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(1-a) "Consumer" means an individual who applies for or |
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receives the proceeds of a refund anticipation check. |
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(2) "Facilitator" means a person who processes, |
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receives, or accepts for delivery an application for a refund |
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anticipation loan or a refund anticipation check, delivers a check |
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in payment of refund anticipation loan proceeds, or in any other |
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manner acts to allow the making of a refund anticipation loan or the |
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issuance of a refund anticipation check. |
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(3-a) "Refund anticipation check" means a check, stored |
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value card, or other payment mechanism: |
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(A) that represents the proceeds of the |
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consumer's tax refund; |
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(B) that is issued by a depository institution or |
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other person who receives a direct deposit of the consumer's tax |
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refund or tax credits; and |
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(C) for which the consumer pays a fee or other |
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consideration. |
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SECTION 3. Section 352.002(b), Finance Code, is amended to |
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read as follows: |
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(b) This section does not apply to: |
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(1) a bank, thrift, savings association, industrial |
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bank, or credit union operating under the laws of the United States |
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or this state; |
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(2) an affiliate that is a servicer of a person |
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described by Subdivision (1) operating under the name of that |
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person; or |
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(3) any person who acts solely as an intermediary and |
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does not interact directly with a taxpayer in the making of the |
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refund anticipation loan or issuance of a refund anticipation |
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check. |
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SECTION 4. Section 352.003(a), Finance Code, is amended to |
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read as follows: |
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(a) To register as a facilitator, a person must provide to |
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the commissioner, on or before December 31 preceding each calendar |
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year in which the person seeks to act as a facilitator: |
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(1) a list of each location in this state at which |
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e-file providers authorized by the Internal Revenue Service file |
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tax returns on behalf of borrowers for whom the facilitator acts to |
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allow the making of a refund anticipation loan or acts to facilitate |
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the issuance of a refund anticipation check; and |
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(2) a processing fee for each location included on the |
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list furnished under Subdivision (1). |
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SECTION 5. The heading to Section 352.004, Finance Code, is |
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amended to read as follows: |
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Sec. 352.004. DISCLOSURE REQUIREMENTS FOR REFUND |
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ANTICIPATION LOANS. |
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SECTION 6. Chapter 352, Finance Code, is amended by adding |
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Section 352.0041 to read as follows: |
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Sec. 352.0041. DISCLOSURE REQUIREMENTS FOR REFUND |
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ANTICIPATION CHECKS. (a) A facilitator to which Section 352.002 |
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applies shall discuss with and clearly disclose to a consumer: |
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(1) the refund anticipation check fee schedule; |
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(2) a written statement disclosing: |
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(A) that the taxpayer may file an income tax |
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return electronically without applying for a refund anticipation |
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check; |
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(B) the average time, as published by the |
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Internal Revenue Service, within which a taxpayer can expect to |
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receive a refund for an income tax return filed electronically and |
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within which the refund is: |
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(i) deposited directly into the taxpayer's |
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bank account; or |
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(ii) mailed to the taxpayer; and |
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(C) that the Internal Revenue Service does not |
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guarantee payment of the full amount of the anticipated refund; |
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and |
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(3) the estimated total fees for the check. |
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(b) A refund anticipation check fee schedule required by |
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Subsection (a)(1) must be a listing or table of fees charged for the |
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issuance of a refund anticipation check. The schedule shall: |
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(1) list separately each fee imposed related to the |
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issuance of a refund anticipation check; and |
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(2) list the total amount of fees imposed related to |
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the issuance of a refund anticipation check. |
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(c) A facilitator who advertises or markets refund |
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anticipation checks in Spanish shall offer any consumer the option |
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of receiving a Spanish-language printed disclosure and |
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contract. A facilitator who negotiates a refund anticipation |
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check with a consumer in Spanish shall offer that consumer the |
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option of receiving a Spanish-language printed disclosure and |
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contract. |
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SECTION 7. Section 352.008, Finance Code, is amended to |
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read as follows: |
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Sec. 352.008. PREEMPTION OF LOCAL ORDINANCE. This chapter |
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preempts a local ordinance or rule regulating refund anticipation |
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loans or refund anticipation checks. |
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SECTION 8. This Act takes effect January 1, 2014. |