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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 access businesses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 393.604(a), Finance Code, is amended to |
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read as follows: |
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(a) An application for a license under this subchapter must: |
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(1) be under oath; |
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(2) give the approximate location from which the |
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business is to be conducted; |
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(3) contain [identify] the names, physical addresses, |
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mailing addresses, and telephone numbers of the business's |
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principal parties in interest, and the nature and extent of their |
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interests in the business; |
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(4) contain the name, physical address, and telephone |
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number of all third-party lender organizations with which the |
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business contracts to provide services described by Section |
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393.602(a) or from which the business arranges extensions of |
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consumer credit described by Section 393.602(a); and |
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(5) contain other relevant information that the |
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commissioner requires for the findings required under Section |
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393.607. |
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SECTION 2. Section 393.620, Finance Code, is amended to |
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read as follows: |
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Sec. 393.620. TRANSFER OR ASSIGNMENT OF LICENSE |
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PROHIBITED. A license may not be transferred or assigned [only
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with the approval of the commissioner]. |
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SECTION 3. Subchapter G, Chapter 393, Finance Code, is |
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amended by adding Sections 393.629 and 393.630 to read as follows: |
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Sec. 393.629. MAINTENANCE OF RECORDS. A credit access |
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business shall maintain a complete set of records of all extensions |
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of consumer credit obtained for consumers by the business or that |
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the business assisted consumers in obtaining. The records must |
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include: |
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(1) the name and address of each consumer; and |
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(2) the principal amount of the advance or loan. |
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Sec. 393.630. ROLLOVER FEES PROHIBITED. (a) A credit |
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access business may not charge a fee or other valuable |
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consideration to obtain for a consumer or assist a consumer in |
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obtaining an extension of consumer credit in which a deferred |
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presentment transaction or motor vehicle title loan is being |
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renewed, rolled over, or otherwise consolidated by a lender. |
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(b) For purposes of this section, "roll over" means: |
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(1) to refinance or pay all or part of the finance |
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charges and cash advance of a deferred presentment transaction with |
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a new deferred presentment transaction; or |
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(2) to refinance or pay all or part of the principal |
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amount and finance charges of a motor vehicle title loan with a new |
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motor vehicle title loan. |
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SECTION 4. This Act takes effect September 1, 2013. |