Honorable Dan Patrick, Lieutenant Governor, Senate
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB1052 by Hughes (Relating to debt cancellation agreements offered in connection with certain retail installment contracts and leases for vehicles and deferred payments under motor vehicle retail installment contracts; providing for a civil penalty.), As Passed 2nd House
No significant fiscal implication to the State is anticipated.
The bill would amend the Finance Code relating to debt cancellation agreements offered in connection with certain retail installment contracts and leases for vehicles and deferred payments under motor vehicle retail installment contracts and providing for a civil penalty. The bill would permit the Office of Consumer Credit commissioner to agree in writing to extend the approval period for a debt cancellation agreement form. Under the provisions of the bill, the Attorney General would be permitted to bring action in the name of the state against a person to restrain the person from engaging in an act or practice that is in violation of Chapter 397 of the Finance Code. The bill would permit the action brought forth to commence in certain district court and would permit the court to issue a temporary restraining order or injunctive to restrain or prevent a violation of this chapter. Under the provisions of the bill, a civil penalty of up to $20,000 per violation may be paid to the state and the Office of the Attorney General could recover reasonable expenses relating to the violation.
The Office of the Attorney General, Office of Consumer Credit Commissioner, and the Office of Court Administration anticipate any additional work resulting from the passage of the bill could be reasonably absorbed within current resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 466 Office of Consumer Credit Commissioner