|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the regulation of consumer credit transactions and the |
|
regulatory authority of the Office of Consumer Credit Commissioner. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 14.2015, Finance Code, is amended 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 or investigation by the commissioner or the |
|
commissioner's representative of a license holder, registrant, |
|
applicant, or other person under a provision listed in Section |
|
14.201 [Section 339.001, Subtitle B or C, Title 4, Subchapter G of
|
|
Chapter 393, 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 the [a] license holder, |
|
registrant, applicant, or other person examined or investigated |
|
[under Section 339.001, Subtitle B or C, Title 4, Subchapter G of
|
|
Chapter 393, or Chapter 394]; |
|
(2) work performed by the commissioner or the |
|
commissioner's representative on information obtained from the [a] |
|
license holder, registrant, applicant, or other person for the |
|
purposes of an examination or investigation [conducted under
|
|
Section 339.001,
Subtitle B or C, Title 4, Chapter 393 with
|
|
respect to a credit access business, or Chapter 394]; |
|
(3) a report on an examination or investigation of the |
|
[a] license holder, registrant, applicant, or other person |
|
[conducted under Section 339.001, Subtitle B or C, Title 4, Chapter
|
|
393 with respect to a credit access business, or Chapter 394]; and |
|
(4) any written communications between the license |
|
holder, registrant, applicant, or other person, as applicable, and |
|
the commissioner or the commissioner's representative relating to |
|
or referencing the [an] examination or investigation [conducted
|
|
under Section 339.001, Subtitle B or C, Title 4, Chapter 393 with
|
|
respect to a credit access business, 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 information was provided to or provided by |
|
the license holder, registrant, applicant, or other person, and the |
|
person 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 2. Section 14.253, Finance Code, is amended to read |
|
as follows: |
|
Sec. 14.253. REPORT ON VIOLATION. If the commissioner |
|
determines that a violation occurred, the commissioner may issue a |
|
report that states: |
|
(1) the facts on which the determination is based; and |
|
(2) the commissioner's recommendation on imposition of |
|
a penalty, restitution, or both, including a recommendation on the |
|
amount of the penalty or restitution. |
|
SECTION 3. Section 14.254(b), Finance Code, is amended to |
|
read as follows: |
|
(b) The notice must: |
|
(1) include a brief summary of the alleged violation; |
|
(2) include a statement of the amount of the |
|
recommended penalty or restitution; and |
|
(3) inform the person that the person has a right to a |
|
hearing on the occurrence of the violation, the amount of the |
|
penalty or restitution, or both. |
|
SECTION 4. Sections 14.255 and 14.256, Finance Code, are |
|
amended to read as follows: |
|
Sec. 14.255. RESPONSE OF PERSON RECEIVING NOTICE. Not |
|
later than the 20th day after the date on which a person receives |
|
notice under Section 14.254, the person may: |
|
(1) accept in writing the determination and |
|
recommended penalty or restitution of the commissioner; or |
|
(2) make a written request for a hearing on the |
|
occurrence of the violation, the amount of the penalty or |
|
restitution, or both. |
|
Sec. 14.256. ACCEPTANCE OF PENALTY OR RESTITUTION; DEFAULT. |
|
If a person accepts the determination and recommended penalty or |
|
restitution of the commissioner or fails to make a timely written |
|
request for a hearing, the commissioner by order shall approve the |
|
determination and impose the recommended penalty, restitution, or |
|
both. |
|
SECTION 5. The heading to Section 14.257, Finance Code, is |
|
amended to read as follows: |
|
Sec. 14.257. HEARING ON PENALTY OR RESTITUTION; ORDER. |
|
SECTION 6. Sections 14.257(a), (b), and (c), Finance Code, |
|
are amended to read as follows: |
|
(a) If a person makes a timely written request for |
|
[requests] a hearing [or fails to give a timely response to the
|
|
notice], the commissioner shall set a hearing and give notice of the |
|
hearing to the person by certified mail. |
|
(b) The hearing shall be held by a hearings officer who |
|
shall make findings of fact and conclusions of law and promptly |
|
issue a proposal for a decision about the occurrence of the |
|
violation and the amount of the [a] proposed penalty or |
|
restitution. |
|
(c) According to the findings of fact, conclusions of law, |
|
and proposal for a decision, the commissioner by order may find: |
|
(1) that a violation has occurred and impose a |
|
penalty, restitution, or both; or |
|
(2) a violation has not occurred. |
|
SECTION 7. The heading to Section 14.258, Finance Code, is |
|
amended to read as follows: |
|
Sec. 14.258. STAY OF PENALTY OR RESTITUTION; SUIT BY |
|
ATTORNEY GENERAL. |
|
SECTION 8. Sections 14.258(a), (b), (c), and (d), Finance |
|
Code, are amended to read as follows: |
|
(a) The enforcement of the penalty or restitution may be |
|
stayed during the time the order is under judicial review if the |
|
person pays the penalty or restitution to the clerk of the court or |
|
files a supersedeas bond with the court in the amount of the penalty |
|
or restitution. A person who cannot afford to pay the penalty or |
|
restitution or file the bond may stay the enforcement by filing an |
|
affidavit in the manner required by the Texas Rules of Civil |
|
Procedure for a party who cannot afford to file security for costs, |
|
subject to the right of the commissioner to contest the affidavit as |
|
provided by those rules. |
|
(b) The attorney general may sue to collect the penalty or |
|
to enforce an order of restitution. |
|
(c) A court that sustains the occurrence of a violation may |
|
uphold or reduce the amount of the administrative penalty or |
|
restitution and order the person to pay that amount. |
|
(d) A court that does not sustain the occurrence of a |
|
violation shall order that no penalty or restitution is owed. |
|
SECTION 9. Section 180.002(5), Finance Code, is amended to |
|
read as follows: |
|
(5) "Dwelling" has the meaning assigned by Section |
|
103(w) [103(v)] of the Truth in Lending Act (15 U.S.C. Section |
|
1602(w) [1602(v)]). |
|
SECTION 10. Section 303.015(c), Finance Code, is amended to |
|
read as follows: |
|
(c) A variable rate agreement for credit extended primarily |
|
for personal, family, or household use must include the disclosures |
|
identified for variable rate contracts required by regulations |
|
issued by the Federal Reserve Board and the Bureau of Consumer |
|
Financial Protection under the Truth in Lending Act (15 U.S.C. |
|
Section 1601 et seq.), as amended, except that if that Act does not |
|
apply because of the amount of the transaction, the following |
|
disclosure must be included in a size equal to at least 10-point |
|
type that is boldface, capitalized, underlined, or otherwise set |
|
out from surrounding material so as to be conspicuous: |
|
"NOTICE TO CONSUMER: UNDER TEXAS LAW, IF YOU CONSENT TO THIS |
|
AGREEMENT, YOU MAY BE SUBJECT TO A FUTURE RATE AS HIGH AS 24 PERCENT |
|
PER YEAR." |
|
SECTION 11. Section 303.402(a), Finance Code, is amended to |
|
read as follows: |
|
(a) A person who contracts for, charges, or receives under a |
|
contract subject to Chapter 342, 345, 346, 347, 348, or 353, |
|
including a contract for an open-end account, interest [a rate] or |
|
[amount of] time price differential that exceeds the maximum |
|
applicable [rate or] amount authorized by the applicable chapter or |
|
this chapter is subject to a penalty for that violation determined |
|
under Chapter 349. |
|
SECTION 12. Sections 308.002(c) and (e), Finance Code, are |
|
amended to read as follows: |
|
(c) In interpreting this section, an administrative agency |
|
or a court shall be guided by the applicable advertising provisions |
|
of: |
|
(1) Part C of the Truth in Lending Act [15 U.S.C.
|
|
Chapter 41, Subchapter I] (15 U.S.C. Section 1661 [1601] et seq.); |
|
(2) Regulation Z (12 C.F.R. Parts 226 and 1026) [12
|
|
C.F.R. Part 226] adopted by the Board of Governors of the Federal |
|
Reserve System and the Bureau of Consumer Financial Protection; and |
|
(3) the Official Staff Commentary and other |
|
interpretations of that statute and regulation by the Board of |
|
Governors of the Federal Reserve System, the Bureau of Consumer |
|
Financial Protection, and the staff of those agencies [its staff]. |
|
(e) A creditor who complies with the Truth in Lending Act |
|
(15 U.S.C. Section 1601 et seq.) and [Federal Reserve] Regulation Z |
|
(12 C.F.R. Parts [Part] 226 and 1026) in advertising a credit |
|
transaction is considered to have fully complied with this section. |
|
SECTION 13. Section 341.301(a), Finance Code, is amended to |
|
read as follows: |
|
(a) In each advertisement that purports to offer credit |
|
regulated by this subtitle, Subtitle C, or Chapter 394, the |
|
advertiser shall disclose the legal or registered name of the |
|
advertiser and: |
|
(1) shall disclose the street address of the |
|
advertiser's place of business unless the advertisement: |
|
(A) is located on the premises of the |
|
advertiser's place of business; or |
|
(B) is broadcast by radio or television; or |
|
(2) if the advertisement is broadcast by radio or |
|
television, shall: |
|
(A) disclose the telephone number of the |
|
advertiser; and |
|
(B) comply with the applicable disclosure |
|
requirements of Regulation Z (12 C.F.R. Parts 226 and 1026) [12
|
|
C.F.R. Section 226.1 et seq. (Regulation Z)]. |
|
SECTION 14. Section 341.401(b), Finance Code, is amended to |
|
read as follows: |
|
(b) In interpreting this section, a court or administrative |
|
agency shall be guided by the Equal Credit Opportunity Act (15 |
|
U.S.C. Section 1691 et seq.) and regulations under and |
|
interpretations of that Act by the Federal Reserve Board and the |
|
Bureau of Consumer Financial Protection to the extent that Act and |
|
those regulations and interpretations can be made applicable to |
|
conduct prohibited by this section. |
|
SECTION 15. Section 341.402(b), Finance Code, is amended to |
|
read as follows: |
|
(b) The liability of a person under this section is instead |
|
of and not in addition to that person's liability under the Equal |
|
Credit Opportunity [Title VII of the Consumer Credit Protection] |
|
Act (15 U.S.C. Section 1691 et seq.). If the same act or omission |
|
violates Section 341.401 and applicable federal law, the person |
|
aggrieved by that conduct may bring a legal action to recover |
|
monetary damages either under this section or under that federal |
|
law, but not both. |
|
SECTION 16. Section 341.502(a-1), Finance Code, is amended |
|
to read as follows: |
|
(a-1) If the terms of the agreement for a loan under |
|
Subsection (a) were negotiated in Spanish, a copy of a summary of |
|
those terms and other pertinent information shall be provided to |
|
the debtor in Spanish in a form identical to disclosures required |
|
for a closed-end transaction under 12 C.F.R. Sections [Section] |
|
226.18 and 1026.18. |
|
SECTION 17. Section 342.156, Finance Code, is amended to |
|
read as follows: |
|
Sec. 342.156. LICENSE SUSPENSION OR REVOCATION. After |
|
notice and an opportunity for a hearing the commissioner may |
|
suspend or revoke a license if the commissioner finds that: |
|
(1) the license holder failed to pay the annual |
|
license fee, an examination fee, an investigation fee, or another |
|
charge imposed by the commissioner under this chapter; |
|
(2) the license holder, knowingly or without the |
|
exercise of due care, violated this chapter or a rule adopted or |
|
order issued under this chapter; |
|
(3) a fact or condition exists that, if it had existed |
|
or had been known to exist at the time of the original application |
|
for the license, clearly would have justified the commissioner's |
|
denial of the application; or |
|
(4) the license holder has failed to ensure that an |
|
individual acting as a residential mortgage loan originator, as |
|
defined by Section 180.002, in the making, transacting, or |
|
negotiating of a loan subject to this chapter is licensed under this |
|
chapter in accordance with Section 342.0515. |
|
SECTION 18. Section 342.201, Finance Code, is amended by |
|
adding Subsection (e-1) to read as follows: |
|
(e-1) The interest charge under Subsection (e) must be |
|
contracted for, charged, or received using the scheduled |
|
installment earnings method or the true daily earnings method under |
|
one of the following methods: |
|
(1) applying the applicable daily rate to each part of |
|
the unpaid principal balance corresponding to the brackets |
|
described by Subsection (e) for the actual or scheduled number of |
|
days during a payment period; or |
|
(2) applying a single equivalent daily rate to the |
|
unpaid principal balance for the actual or scheduled number of days |
|
during a payment period, where the single equivalent daily rate is |
|
determined at the inception of the loan using the scheduled |
|
installment earnings method, and would earn an amount of interest |
|
authorized under Subsection (e) if the debt were paid to maturity |
|
according to the schedule of payments. |
|
SECTION 19. Section 343.201, Finance Code, is amended to |
|
read as follows: |
|
Sec. 343.201. DEFINITIONS. In this subchapter: |
|
(1) "High-cost home loan" means a loan that: |
|
(A) is made to one or more individuals for |
|
personal, family, or household purposes; |
|
(B) is secured in whole or part by: |
|
(i) a manufactured home, as defined by |
|
Section 347.002, used or to be used as the borrower's principal |
|
residence; or |
|
(ii) real property improved by a dwelling |
|
designed for occupancy by four or fewer families and used or to be |
|
used as the borrower's principal residence; |
|
(C) has a principal amount equal to or less than |
|
one-half of the maximum conventional loan amount for first |
|
mortgages as established and adjusted by the Federal National |
|
Mortgage Association; |
|
(D) is not: |
|
(i) a reverse mortgage; or |
|
(ii) an open-end account, as defined by |
|
Section 301.002; and |
|
(E) is a credit transaction described by 12 |
|
C.F.R. Section 1026.32 [226.32], as amended, except that the term |
|
includes a residential mortgage transaction, as defined by 12 |
|
C.F.R. Section 1026.2 [226.2], as amended, if the total loan amount |
|
is $20,000 or more and: |
|
(i) the annual percentage rate exceeds the |
|
rate indicated in 12 C.F.R. Section 1026.32(a)(1)(i) |
|
[226.32(a)(1)(i)], as amended; or |
|
(ii) the total points and fees payable by |
|
the consumer at or before loan closing will exceed the amount |
|
indicated in 12 C.F.R. Section 1026.32(a)(1)(ii) |
|
[226.32(a)(1)(ii)], as amended. |
|
(2) "Points and fees" has the meaning assigned by 12 |
|
C.F.R. Section 1026.32(b) [226.32(b)], as amended. |
|
SECTION 20. Section 345.106, Finance Code, is amended to |
|
read as follows: |
|
Sec. 345.106. PROCESSING FEE FOR RETURNED CHECK. A retail |
|
charge agreement may provide that the holder of the agreement may: |
|
(1) charge the retail buyer, on return of a dishonored |
|
check given in payment under the agreement, a reasonable processing |
|
fee that does not exceed the amount prescribed by Section 3.506, |
|
Business & Commerce Code [is not more than $15]; and |
|
(2) add the fee to the unpaid balance under the |
|
agreement. |
|
SECTION 21. Section 347.002(b), Finance Code, is amended to |
|
read as follows: |
|
(b) To the extent possible, a word or phrase used in this |
|
chapter, other than a term defined by this section, has the meaning |
|
assigned by the Truth in Lending [Part I, Consumer Credit
|
|
Protection] Act (15 U.S.C. Section 1601 et seq.) and its subsequent |
|
amendments, as implemented by Regulation Z (12 C.F.R. Part 1026) |
|
[12 C.F.R. 226.1 et seq]. |
|
SECTION 22. Section 347.004(a), Finance Code, is amended to |
|
read as follows: |
|
(a) A creditor shall comply with all applicable |
|
requirements, including required disclosures, under the Truth in |
|
Lending [Part I, Consumer Credit Protection] Act (15 U.S.C. Section |
|
1601 et seq.) and its subsequent amendments, as implemented by |
|
Regulation Z (12 C.F.R. Part 1026) [12 C.F.R. 226.1 et seq.
|
|
(Regulation Z)] adopted under that Act. |
|
SECTION 23. Section 347.155(b), Finance Code, is amended to |
|
read as follows: |
|
(b) On prepayment, after deduction of an acquisition charge |
|
that does not exceed $50, the consumer is entitled to a refund |
|
credit of the time price differential or interest. The amount of |
|
the credit is computed on an actuarial basis in accordance with |
|
regulations of the Office of Thrift Supervision or the Office of the |
|
Comptroller of the Currency adopted under the Depository |
|
Institutions Deregulation and Monetary Control Act of 1980 (12 |
|
U.S.C. Section 4a et seq.) for the prepayment of a mortgage loan |
|
that is secured by a first lien on a residential manufactured home. |
|
SECTION 24. Section 348.005, Finance Code, as amended by |
|
Chapters 355 (H.B. 2462), 1135 (H.B. 2741), and 1287 (H.B. 2202), |
|
Acts of the 83rd Legislature, Regular Session, 2013, is reenacted |
|
and amended to read as follows: |
|
Sec. 348.005. ITEMIZED CHARGE. An amount in a retail |
|
installment contract is an itemized charge if the amount is not |
|
included in the cash price and is the amount of: |
|
(1) the price of accessories; |
|
(1-a) the price of services related to the sale; |
|
(1-b) fees for registration, certificate of title, and |
|
license and any additional registration fees charged by a deputy as |
|
authorized by rules adopted under Section 520.0071 [520.008], |
|
Transportation Code; |
|
(2) any taxes; |
|
(3) fees or charges prescribed by law and connected |
|
with the sale or inspection of the motor vehicle; and |
|
(4) charges authorized for insurance, service |
|
contracts, warranties, automobile club memberships, or a debt |
|
cancellation agreement by this chapter [Subchapter C]. |
|
SECTION 25. Section 348.009(a), Finance Code, is amended to |
|
read as follows: |
|
(a) The disclosure requirements of Regulation Z (12 C.F.R. |
|
Parts 226 and 1026) [12 C.F.R. Part 226 (Regulation Z)] adopted |
|
under the Truth in Lending Act (15 U.S.C. Section 1601 et seq.) and |
|
specifically 12 C.F.R. Sections [Section] 226.18(f) and |
|
1026.18(f), regarding variable rate disclosures, apply according |
|
to their terms to retail installment transactions. |
|
SECTION 26. Section 348.208(b), Finance Code, is amended to |
|
read as follows: |
|
(b) A retail installment contract may include as a separate |
|
charge an amount for: |
|
(1) motor vehicle property damage or bodily injury |
|
liability insurance; |
|
(2) mechanical breakdown insurance; |
|
(3) participation in a [motor] vehicle [theft] |
|
protection product warranty authorized under Chapter 2306, |
|
Occupations Code [plan]; |
|
(4) insurance to reimburse the retail buyer for the |
|
amount computed by subtracting the proceeds of the buyer's basic |
|
collision policy on the motor vehicle from the amount owed on the |
|
vehicle if the vehicle has been rendered a total loss; |
|
(5) a warranty or service contract relating to the |
|
motor vehicle; |
|
(6) an identity recovery service contract; or |
|
(7) a debt cancellation agreement if the agreement is |
|
included as a term of a retail installment contract under Section |
|
348.124. |
|
SECTION 27. Section 348.404(d), Finance Code, is amended to |
|
read as follows: |
|
(d) A retail seller may include money advanced under |
|
Subsection (b) in the retail installment contract only if it is |
|
included as an itemized charge and may disclose money advanced |
|
under Subsection (b) in any manner permitted by Regulation Z (12 |
|
C.F.R. Parts 226 and 1026) [12 C.F.R. Part 226 (Regulation Z)] |
|
adopted under the Truth in Lending Act (15 U.S.C. Section 1601 et |
|
seq.). Section 349.003 does not apply to this subsection. This |
|
subsection does not create a private right of action. The |
|
commissioner has exclusive jurisdiction to enforce this |
|
subsection. |
|
SECTION 28. Section 348.508, Finance Code, is amended to |
|
read as follows: |
|
Sec. 348.508. LICENSE SUSPENSION OR REVOCATION. After |
|
notice and an opportunity for a hearing the commissioner may |
|
suspend or revoke a license if the commissioner finds that: |
|
(1) the license holder failed to pay the annual |
|
license fee, an examination fee, an investigation fee, or another |
|
charge imposed by the commissioner; |
|
(2) the license holder, knowingly or without the |
|
exercise of due care, violated this chapter or a rule adopted or |
|
order issued under this chapter; or |
|
(3) a fact or condition exists that, if it had existed |
|
or had been known to exist at the time of the original application |
|
for the license, clearly would have justified the commissioner's |
|
denial of the application. |
|
SECTION 29. Section 351.0022, Finance Code, is amended to |
|
read as follows: |
|
Sec. 351.0022. WAIVER PROHIBITED. Except as specifically |
|
permitted by this chapter or Chapter 32, Tax Code, a property owner |
|
may not waive or limit a requirement imposed on a property tax |
|
lender by this chapter or Chapter 32, Tax Code. |
|
SECTION 30. Subchapter A, Chapter 351, Finance Code, is |
|
amended by adding Section 351.0081 to read as follows: |
|
Sec. 351.0081. LENDER'S RECORDS; DOCUMENT RETENTION |
|
REQUIREMENTS. (a) A property tax lender shall maintain a record of |
|
each property tax loan made under this chapter as necessary to |
|
enable the commissioner to determine whether the lender is |
|
complying with this chapter. |
|
(b) A property tax lender shall keep the record until the |
|
later of: |
|
(1) the fourth anniversary of the date of the property |
|
tax loan; or |
|
(2) the second anniversary of the date on which the |
|
final entry is made in the record. |
|
(c) A record described by Subsection (a) must be prepared in |
|
accordance with accepted accounting practices. |
|
(d) The commissioner shall accept a lender's system of |
|
records if the system discloses the information reasonably required |
|
under Subsection (a). |
|
(e) A property tax lender shall keep each obligation signed |
|
by a property owner at an office in this state designated by the |
|
lender unless the obligation is transferred under an agreement that |
|
gives the commissioner access to the obligation. |
|
SECTION 31. Section 351.156, Finance Code, is amended to |
|
read as follows: |
|
Sec. 351.156. LICENSE SUSPENSION OR REVOCATION. After |
|
notice and an opportunity for a hearing the commissioner may |
|
suspend or revoke a license if the commissioner finds that: |
|
(1) the license holder failed to pay the annual |
|
license fee, an examination fee, an investigation fee, or another |
|
charge imposed by the commissioner under this chapter; |
|
(2) the license holder, knowingly or without the |
|
exercise of due care, violated this chapter or Section 32.06 or |
|
32.065, Tax Code, or a rule adopted or an order issued under this |
|
chapter or Section 32.06 or 32.065, Tax Code; |
|
(3) a fact or condition exists that, if it had existed |
|
or had been known to exist at the time of the original application |
|
for the license, clearly would have justified the commissioner's |
|
denial of the application; or |
|
(4) the license holder has failed to ensure that an |
|
individual acting as a residential mortgage loan originator, as |
|
defined by Section 180.002, in the making, transacting, or |
|
negotiating of a property tax loan for a principal dwelling is |
|
licensed under this chapter in accordance with Section 351.0515. |
|
SECTION 32. Section 352.006(b), Finance Code, is amended to |
|
read as follows: |
|
(b) If the commissioner proposes to revoke a registration, |
|
the facilitator is entitled to notice and an opportunity for a |
|
hearing before the commissioner or a hearings officer, who shall |
|
propose a decision to the commissioner. The commissioner or |
|
hearings officer shall prescribe the time and place of the hearing |
|
if the facilitator makes a written request for a hearing not later |
|
than the 20th day after the date the facilitator receives the notice |
|
of hearing. The hearing is governed by Chapter 2001, Government |
|
Code. |
|
SECTION 33. Section 353.508, Finance Code, is amended to |
|
read as follows: |
|
Sec. 353.508. LICENSE SUSPENSION OR REVOCATION. After |
|
notice and an opportunity for a hearing the commissioner may |
|
suspend or revoke a license if the commissioner finds that: |
|
(1) the license holder failed to pay the annual |
|
license fee, an investigation fee, or another charge imposed by the |
|
commissioner; |
|
(2) the license holder, knowingly or without the |
|
exercise of due care, violated this chapter or a rule adopted or |
|
order issued under this chapter; or |
|
(3) a fact or condition exists that, if it had existed |
|
or had been known to exist at the time of the original application |
|
for the license, clearly would have justified the commissioner's |
|
denial of the application. |
|
SECTION 34. Section 371.157, Finance Code, is amended to |
|
read as follows: |
|
Sec. 371.157. PAWN TICKET. A pawnbroker, at the time a pawn |
|
transaction is entered, shall deliver to the pledgor a pawn ticket |
|
or other memorandum that clearly shows: |
|
(1) the name and address of the pawnshop; |
|
(2) the pledgor's name, address, and physical |
|
description and a driver's license number, military identification |
|
number, identification certificate number, or other official |
|
number that can identify the pledgor; |
|
(3) the date of the transaction; |
|
(4) an identification and description of the pledged |
|
goods, including serial numbers if reasonably available; |
|
(5) the amount of cash advanced or credit extended to |
|
the pledgor, designated as "Amount Financed"; |
|
(6) the amount of the pawn service charge, designated |
|
as "Finance Charge"; |
|
(7) the total amount, consisting of the amount |
|
financed plus the finance charge, that must be paid to redeem the |
|
pledged goods on the maturity date, designated as "Total of |
|
Payments"; |
|
(8) the "Annual Percentage Rate," computed according |
|
to Regulation Z (12 C.F.R. Part 1026) adopted [regulations issued] |
|
by the Bureau of Consumer Financial Protection [Federal Reserve
|
|
Board] under the Truth in Lending Act (15 U.S.C. Section 1601 et |
|
seq.), as amended; |
|
(9) the maturity date of the pawn transaction; and |
|
(10) a statement that: |
|
(A) the pledgor is not obligated to redeem the |
|
pledged goods; and |
|
(B) the pledged goods may be forfeited to the |
|
pawnbroker on the 31st day after the maturity date. |
|
SECTION 35. Section 371.251(a), Finance Code, is amended to |
|
read as follows: |
|
(a) After notice and an opportunity for a hearing, the |
|
commissioner may revoke or suspend a pawnshop license if the |
|
commissioner finds that: |
|
(1) the pawnbroker has not paid a fee or charge imposed |
|
by the commissioner under this chapter; |
|
(2) the pawnbroker, knowingly or without exercising |
|
due care to prevent the violation, has violated this chapter or a |
|
rule adopted or an order issued under this chapter; |
|
(3) a fact or condition exists that, if it had existed |
|
or had been known to exist at the time of the original license |
|
application, clearly would have justified refusal to issue the |
|
license; |
|
(4) the pawnbroker has established an association with |
|
an unlicensed person who, with the knowledge of the pawnbroker, has |
|
violated this chapter; |
|
(5) the pawnbroker has aided or conspired with a |
|
person to circumvent this chapter; |
|
(6) the pawnbroker or a legal or beneficial owner of |
|
the pawnbroker is not of good moral character or has been convicted |
|
of a crime that the commissioner finds directly relates to the |
|
duties and responsibilities of the occupation of pawnbroker or |
|
would otherwise make the person unfit for a pawnshop license under |
|
Section 371.052; |
|
(7) the financial responsibility, experience, |
|
character, or general fitness of the pawnbroker or its owners and |
|
managers do not command the confidence of the public or warrant the |
|
belief that the business will be operated lawfully, fairly, and |
|
within the purposes of this chapter; or |
|
(8) the pawnbroker has not maintained the minimum net |
|
assets required by Section 371.072. |
|
SECTION 36. Section 371.255, Finance Code, is amended to |
|
read as follows: |
|
Sec. 371.255. REVOCATION OR SUSPENSION OF PAWNSHOP EMPLOYEE |
|
LICENSE. After notice and an opportunity for a hearing, the |
|
commissioner may revoke or suspend a pawnshop employee license if |
|
the commissioner finds that: |
|
(1) the license holder knowingly or recklessly |
|
violated this chapter or a rule adopted or order issued under this |
|
chapter; |
|
(2) a fact or condition exists that, if it had existed |
|
or had been known to exist at the time of the original license |
|
application, clearly would have justified refusal to issue the |
|
license; or |
|
(3) the moral character, business repute, and general |
|
fitness of the license holder do not warrant belief that the license |
|
holder will operate the business lawfully and fairly within the |
|
provisions of this chapter. |
|
SECTION 37. Section 393.614(a), Finance Code, is amended to |
|
read as follows: |
|
(a) After notice and an opportunity for a hearing the |
|
commissioner may suspend or revoke a license if the commissioner |
|
finds that: |
|
(1) the license holder failed to pay the annual |
|
license fee, an examination fee, an investigation fee, or another |
|
charge imposed by the commissioner under this subchapter; |
|
(2) the license holder, knowingly or without the |
|
exercise of due care, violated this chapter or a rule adopted or |
|
order issued under this chapter; or |
|
(3) a fact or condition exists that, if it had existed |
|
or had been known to exist at the time of the original application |
|
for the license, clearly would have justified the commissioner's |
|
denial of the application. |
|
SECTION 38. Section 394.204(k), Finance Code, is amended to |
|
read as follows: |
|
(k) In addition to the power to refuse an initial |
|
application as specified in this section, the commissioner may |
|
suspend or revoke a provider's registration after notice and an |
|
opportunity for a hearing if the commissioner finds that any of the |
|
following conditions are met: |
|
(1) a fact or condition exists that if it had existed |
|
when the provider applied for registration would have been grounds |
|
for denying registration; |
|
(2) a fact or condition exists that the commissioner |
|
was not aware of when the provider applied for registration and |
|
would have been grounds for denying registration; |
|
(3) the provider violates this subchapter or rule or |
|
order of the commissioner under this subchapter; |
|
(4) the provider is insolvent; |
|
(5) the provider refuses to permit the commissioner to |
|
make an examination authorized by this subchapter; |
|
(6) the provider fails to respond within a reasonable |
|
time and in an appropriate manner to communications from the |
|
commissioner; |
|
(7) the provider has received money from or on behalf |
|
of a consumer for disbursement to a creditor under a debt management |
|
plan that provides for regular periodic payments to creditors in |
|
full repayment of the principal amount of the debts and the provider |
|
has failed to disburse money to the creditor on behalf of the |
|
consumer within a reasonable time, normally 30 days; |
|
(8) the commissioner determines that the provider's |
|
trust account is not materially in balance with and reconciled to |
|
the consumer's account; or |
|
(9) the provider fails to warrant the belief that the |
|
business will be operated lawfully and fairly and within the |
|
provisions and purposes of this subchapter. |
|
SECTION 39. Section 1956.0614(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) If the commissioner proposes to revoke a registration, |
|
the dealer is entitled to notice and an opportunity for a hearing |
|
before the commissioner or a hearings officer, who shall propose a |
|
decision to the commissioner. The commissioner or hearings |
|
officer shall prescribe the time and place of the hearing if the |
|
dealer makes a written request for a hearing not later than the 20th |
|
day after the date the dealer receives the notice of the |
|
hearing. The hearing is governed by Chapter 2001, Government Code. |
|
SECTION 40. Sections 32.06(d-1) and (f-3), Tax Code, are |
|
amended to read as follows: |
|
(d-1) A right of rescission described by the Truth in |
|
Lending Act (15 U.S.C. Section 1635) and Regulation Z (12 C.F.R. |
|
Section 1026.23) [12 C.F.R. Section 226.23] applies to a transfer |
|
under this section of a tax lien on residential property owned and |
|
used by the property owner for personal, family, or household |
|
purposes. |
|
(f-3) Notwithstanding any contractual agreement with the |
|
property owner, the transferee of a tax lien must provide the payoff |
|
information required by this section to the greatest extent |
|
permitted by the Gramm-Leach-Bliley Act (15 U.S.C. Section 6802) |
|
and Regulation P (12 C.F.R. Section 1016) [15 U.S.C. Section 6802
|
|
and 12 C.F.R. Part 216]. The payoff statement must meet the |
|
requirements of a payoff statement defined by Section 12.017, |
|
Property Code. A transferee may charge a reasonable fee for a |
|
payoff statement that is requested after an initial payoff |
|
statement is provided. However, a transferee is not required to |
|
release payoff information pursuant to a notice under Subsection |
|
(f-1) unless the notice contains the information prescribed by the |
|
Finance Commission of Texas. |
|
SECTION 41. Sections 11.305(a), (b), and (c), Finance Code, |
|
are repealed. |
|
SECTION 42. This Act takes effect September 1, 2015. |