86R2054 GRM-D
 
  By: Paddie H.B. No. 1442
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the continuation and functions of the Office of
  Consumer Credit Commissioner and the licensing and registration of
  persons regulated by that state agency.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 14.062, Finance Code, is amended to read
  as follows:
         Sec. 14.062.  CONSUMER INFORMATION AND COMPLAINTS. (a)  The
  office shall maintain a system to promptly and efficiently act on
  complaints [file on each written complaint] filed with the office.
  The office shall maintain information about parties to the
  complaint, the subject matter of the complaint, a summary of the
  results of the review or investigation of the complaint, and its
  disposition  [The file must include:
               [(1)  the name of the person who filed the complaint;
               [(2)  the date the complaint is received by the office;
               [(3)  the subject matter of the complaint;
               [(4)     the name of each person contacted in relation to
  the complaint;
               [(5)     a summary of the results of the review or
  investigation of the complaint; and
               [(6)     an explanation of the reason the file was closed,
  if the office closed the file without taking action other than to
  investigate the complaint].
         (b)  The office shall make information available describing
  its procedures for [provide to the person filing the complaint and
  to each person who is a subject of the complaint a copy of the
  office's policies and procedures relating to] complaint
  investigation and resolution.
         (c)  The office[, at least quarterly until final disposition
  of the complaint,] shall periodically notify the complaint parties
  [person filing the complaint and each person who is a subject of the
  complaint] of the status of the complaint until final disposition
  [investigation unless the notice would jeopardize an undercover
  investigation].
         SECTION 2.  Section 14.066, Finance Code, is amended to read
  as follows:
         Sec. 14.066.  SUNSET PROVISION. The office is subject to
  Chapter 325, Government Code (Texas Sunset Act). Unless continued
  in existence as provided by that chapter, the office is abolished
  September 1, 2031 [2019].
         SECTION 3.  Section 14.107(b), Finance Code, is amended to
  read as follows:
         (b)  The finance commission by rule shall set the fees for
  licensing and examination, as applicable, under Chapter 393 with
  respect to a credit access business or Chapter 342, 347, 348, 351,
  353, or 371 at amounts or rates necessary to recover the costs of
  administering those chapters. The rules may provide that the amount
  of a fee charged to a license holder is based on the volume of the
  license holder's regulated business and other key factors. The
  commissioner may provide for collection of a single [annual] fee
  for the term of the license from a person licensed under Subchapter
  G of Chapter 393 or Chapter 342, 347, 348, 351, or 371.  The fee must
  [to] include amounts due for both licensing and examination.
         SECTION 4.  Subchapter C, Chapter 14, Finance Code, is
  amended by adding Sections 14.110, 14.111, and 14.112 to read as
  follows:
         Sec. 14.110.  ALTERNATIVE RULEMAKING AND DISPUTE
  RESOLUTION. (a) The finance commission by rule shall develop a
  policy to encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008, Government Code, for the adoption of rules by the finance
  commission applicable to the office; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009, Government Code, to assist in the
  resolution of internal and external disputes under the office's
  jurisdiction.
         (b)  The procedures applicable to the office relating to
  alternative dispute resolution must conform, to the extent
  possible, to any model guidelines issued by the State Office of
  Administrative Hearings for the use of alternative dispute
  resolution by state agencies.
         (c)  The office shall:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  provide training as needed to implement the
  procedures for negotiated rulemaking or alternative dispute
  resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures.
         Sec. 14.111.  ADVISORY COMMITTEES. (a) The commissioner may
  appoint advisory committees to assist the office and commissioner
  in performing their duties.
         (b)  The commissioner shall specify each committee's
  purpose, powers, and duties and shall require each committee to
  report to the commissioner or office in the manner specified by the
  commissioner concerning the committee's activities and the results
  of its work.
         Sec. 14.112.  LICENSING AND REGISTRATION TERMS. (a)  The
  finance commission by rule shall prescribe the licensing or
  registration period for licenses and registrations issued under
  Chapters 342, 345, 347, 348, 351, 352, 353, 371, 393, and 394 of
  this code and Chapter 1956, Occupations Code, not to exceed two
  years.
         (b)  In adopting rules under Subsection (a), the finance
  commission shall set terms for licenses that comply with Chapter
  180 and the federal Secure and Fair Enforcement for Mortgage
  Licensing Act of 2008 (Pub. L. No. 110-289).
         (c)  If the finance commission prescribes the term of a
  license or registration under Subsection (a) for a period other
  than one year, the commissioner shall prorate the applicable fee
  required under a chapter specified in Subsection (a) as necessary
  to reflect the term of the license or registration.
         SECTION 5.  Section 14.201, Finance Code, is amended to read
  as follows:
         Sec. 14.201.  INVESTIGATION AND ENFORCEMENT AUTHORITY.
  Investigative and enforcement authority under this subchapter
  applies only to:
               (1)  this chapter;
               (2)  [,] Subtitles B and C, [of] Title 4;
               (3)  [,] Chapter 393 with respect to a credit access
  business;
               (4)  [, and] Chapter 394; and
               (5)  Subchapter B, Chapter 1956, Occupations Code.
         SECTION 6.  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 Subtitle B or C, Title 4,
  Subchapter G of Chapter 393, or Chapter 394 of this code or
  Subchapter B, Chapter 1956, Occupations Code, is confidential and
  may not be disclosed by the commissioner or an officer or employee
  of the office [Office of Consumer Credit Commissioner], including:
               (1)  information obtained from a license holder,
  registrant, applicant, or other person examined or investigated
  under Subtitle B or C, Title 4, Subchapter G of Chapter 393, or
  Chapter 394 of this code or Subchapter B, Chapter 1956, Occupations
  Code;
               (2)  work performed by the commissioner or the
  commissioner's representative on information obtained from a
  license holder, registrant, applicant, or other person for the
  purposes of an examination or investigation conducted under
  Subtitle B or C, Title 4, Chapter 393 with respect to a credit
  access business, or Chapter 394 of this code or Subchapter B,
  Chapter 1956, Occupations Code;
               (3)  a report on an examination or investigation of a
  license holder, registrant, applicant, or other person conducted
  under Subtitle B or C, Title 4, Chapter 393 with respect to a credit
  access business, or Chapter 394 of this code or Subchapter B,
  Chapter 1956, Occupations Code; 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 an examination or investigation conducted under
  Subtitle B or C, Title 4, Chapter 393 with respect to a credit
  access business, or Chapter 394 of this code or Subchapter B,
  Chapter 1956, Occupations Code.
         (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, registrant, applicant, or
  other 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; or
               (4)  to provide a summary of investigation information
  to the person who filed the complaint with the office.
         SECTION 7.  Section 14.202, Finance Code, is amended to read
  as follows:
         Sec. 14.202.  REQUEST FOR INFORMATION; INVESTIGATION
  AUTHORITY [FAILURE TO COMPLY]. [(a)] On receipt of a written
  complaint or other reasonable cause to believe that a person is
  violating a statute listed by Section 14.201, the commissioner may:
               (1)  require the person to furnish information
  regarding a specific loan, retail transaction, or business practice
  to which the violation relates; and[.]
               (2)  [(b) If a person fails to furnish the information
  requested by the commissioner, the commissioner may] conduct an
  investigation to determine whether a violation exists.
         SECTION 8.  Section 14.208(a), Finance Code, is amended to
  read as follows:
         (a)  If the commissioner has reasonable cause to believe that
  a person is violating a statute to which this chapter applies, the
  commissioner, in addition to any other authorized action, may issue
  an order to cease and desist from the violation or an order to take
  affirmative action, or both, to enforce compliance. After the
  opportunity for a hearing under Chapter 2001, Government Code, a
  [A] person may appeal the order [to the finance commission as
  provided by Subsection (d) or directly] to district court in
  accordance with that chapter [Chapter 2001, Government Code].
         SECTION 9.  Section 14.251, Finance Code, is amended to read
  as follows:
         Sec. 14.251.  ASSESSMENT OF PENALTY; RESTITUTION ORDER.  (a)  
  The commissioner may assess an administrative penalty against a
  person who [knowingly and wilfully] violates or causes a violation
  of this chapter, Chapter 394, or Subtitle B, Title 4, or a rule
  adopted under this chapter, Chapter 394, or Subtitle B, Title 4.
         (a-1)  The commissioner shall assess an administrative
  penalty against a credit access business who [knowingly and
  wilfully] violates or causes a violation of Chapter 393, or a rule
  adopted under Chapter 393.
         (b)  The commissioner may order the following businesses or
  other persons [a person who violates or causes a violation of this
  chapter, Chapter 394, or Subtitle B, Title 4, or a rule adopted
  under this chapter, Chapter 394, or Subtitle B, Title 4, or a credit
  access business who violates or causes a violation of Chapter 393 or
  a rule adopted under Chapter 393,] to pay [make] restitution to an
  identifiable person:
               (1)  a person who violates or causes a violation of this
  chapter, Chapter 394, or Subtitle B, Title 4, or a rule adopted
  under this chapter, Chapter 394, or Subtitle B, Title 4;
               (2)  a credit access business who violates or causes a
  violation of Chapter 393 or a rule adopted under Chapter 393; or
               (3)  a person who violates or causes a violation of
  Subchapter B, Chapter 1956, Occupations Code, or a rule adopted
  under that subchapter [injured by the violation].
         SECTION 10.  Section 342.0515(c), Finance Code, is amended
  to read as follows:
         (c)  Subject to Section 14.112, the [The] finance commission
  shall adopt rules establishing procedures for issuing, renewing,
  and enforcing an individual license under this section. In adopting
  rules under this subsection, the finance commission shall ensure
  that:
               (1)  the minimum eligibility requirements for issuance
  of an individual license are the same as the requirements of Section
  180.055;
               (2)  the minimum eligibility requirements for renewal
  of an individual license are the same as the requirements of Section
  180.059; and
               (3)  the applicant pays:
                     (A)  an investigation fee in a reasonable amount
  determined by the commissioner; and
                     (B)  a [an annual] license fee in an amount
  determined as provided by Section 14.107.
         SECTION 11.  Section 342.101(c), Finance Code, is amended to
  read as follows:
         (c)  On the filing of each license application, the applicant
  shall pay to the commissioner [for the license's year of issuance] a
  license fee in an amount determined as provided by Section 14.107.
         SECTION 12.  Section 342.102(c), Finance Code, is amended to
  read as follows:
         (c)  The bond must be conditioned on:
               (1)  the license holder's faithful performance under
  this chapter and rules adopted under this chapter; and
               (2)  the payment of all amounts that become due to the
  state or another person under this chapter during the period
  [calendar year] for which the bond is given.
         SECTION 13.  Subchapter C, Chapter 342, Finance Code, is
  amended by adding Section 342.106 to read as follows:
         Sec. 342.106.  LICENSE TERM. A license issued under this
  chapter is valid for the period prescribed by finance commission
  rule adopted under Section 14.112.
         SECTION 14.  Section 342.154, Finance Code, is amended to
  read as follows:
         Sec. 342.154.  [ANNUAL] LICENSE FEE. Not later than 30 days
  before the date the license expires [December 1], a license holder
  shall pay to the commissioner for each license held a [an annual]
  fee [for the year beginning the next January 1,] in an amount
  determined as provided by Section 14.107.
         SECTION 15.  Section 342.155, Finance Code, is amended to
  read as follows:
         Sec. 342.155.  EXPIRATION OF LICENSE ON FAILURE TO PAY
  [ANNUAL] FEE. If the [annual] fee for a license is not paid before
  the 16th day after the date on which the written notice of
  delinquency of payment has been given to the license holder, the
  license expires on [the later of:
               [(1)]  that day[; or
               [(2)     December 31 of the last year for which an annual
  fee was paid].
         SECTION 16.  Subchapter D, Chapter 342, Finance Code, is
  amended by adding Section 342.1555 to read as follows:
         Sec. 342.1555.  GROUNDS FOR REFUSING RENEWAL. The
  commissioner may refuse to renew the license of a person who fails
  to comply with an order issued by the commissioner to enforce this
  chapter.
         SECTION 17.  Section 342.156, Finance Code, is amended to
  read as follows:
         Sec. 342.156.  LICENSE SUSPENSION OR REVOCATION. After
  notice and 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 345.351, Finance Code, is amended to
  read as follows:
         Sec. 345.351.  REGISTRATION OF HOLDER.  (a)  A holder who is
  not an authorized lender under Chapter 342 or a credit union shall:
               (1)  register with the Office of Consumer Credit
  Commissioner; and
               (2)  pay a [an annual] fee of $10 for each location at
  which a retail installment transaction is originated, serviced, or
  collected.
         (b)  Subject to Section 14.112, the [The] finance commission
  by rule may establish procedures to facilitate the registration and
  collection of fees under this section[, including rules staggering
  throughout the year the dates on which fees are due].
         (c)  A registration issued under this section is valid for
  the period prescribed by finance commission rule adopted under
  Section 14.112.
         (d)  The commissioner may refuse to renew the registration of
  a holder who fails to comply with an order issued by the
  commissioner to enforce this chapter.
         SECTION 19.  Section 347.451, Finance Code, is amended by
  amending Subsections (a), (b), and (d) and adding Subsections (a-1)
  and (e) to read as follows:
         (a)  A creditor who is not an authorized lender under Chapter
  342 or a credit union shall:
               (1)  register with the Office of Consumer Credit
  Commissioner; and
               (2)  pay a [an annual] fee of $15 for each location at
  which a credit transaction is originated, serviced, or collected.
         (a-1)  A registration issued under this section is valid for
  the period prescribed by finance commission rule adopted under
  Section 14.112.
         (b)  Subject to Section 14.112, the [The] finance commission
  by rule may establish procedures to facilitate the registration and
  collection of fees under this section[, including rules staggering
  the due dates of the fees throughout the year].
         (d)  A creditor shall file the registration renewal and pay
  the [annual] registration fee to the commissioner not later than
  the 30th day after the date on which the creditor receives the
  notice under Subsection (c).
         (e)  The commissioner may refuse to renew the registration of
  a creditor who fails to comply with an order issued by the
  commissioner to enforce this chapter.
         SECTION 20.  Section 347.4515, Finance Code, is amended by
  adding Subsections (a-1) and (e) and amending Subsection (c) to
  read as follows:
         (a-1)  A license issued under this section is valid for the
  period prescribed by finance commission rule adopted under Section
  14.112.
         (c)  Subject to Section 14.112, the [The] finance commission
  shall adopt rules establishing procedures for issuing, renewing,
  and enforcing an individual license under this section. In adopting
  rules under this subsection, the finance commission shall ensure
  that:
               (1)  the minimum eligibility requirements for issuance
  of an individual license are the same as the requirements of Section
  180.055;
               (2)  the minimum eligibility requirements for renewal
  of an individual license are the same as the requirements of Section
  180.059; and
               (3)  the applicant pays:
                     (A)  an investigation fee in a reasonable amount
  determined by the commissioner; and
                     (B)  a [an annual] license fee in an amount
  determined as provided by Section 14.107.
         (e)  The commissioner may refuse to renew the license of an
  individual described by Subsection (b) who fails to comply with an
  order issued by the commissioner to enforce this chapter.
         SECTION 21.  Section 348.5015(c), Finance Code, is amended
  to read as follows:
         (c)  Subject to Section 14.112, the [The] finance commission
  shall adopt rules establishing procedures for applying for issuing,
  renewing, and enforcing a license under this section. In adopting
  rules under this subsection, the finance commission shall ensure
  that:
               (1)  the minimum eligibility requirements for issuance
  of a license are the same as the requirements of Section 180.055;
               (2)  the minimum eligibility requirements for renewal
  of a license are the same as the requirements of Section 180.059;
  and
               (3)  the applicant pays:
                     (A)  an investigation fee in a reasonable amount
  determined by the commissioner; and
                     (B)  a [an annual] license fee in an amount
  determined as provided by Section 14.107.
         SECTION 22.  Section 348.502(b), Finance Code, is amended to
  read as follows:
         (b)  On the filing of a license application, the applicant
  shall pay to the commissioner:
               (1)  an investigation fee not to exceed $200; and
               (2)  [for the license's year of issuance,] a license fee
  in an amount determined as provided by Section 14.107.
         SECTION 23.  Subchapter F, Chapter 348, Finance Code, is
  amended by adding Section 348.5055 to read as follows:
         Sec. 348.5055.  LICENSE TERM. A license issued under this
  chapter is valid for the period prescribed by finance commission
  rule adopted under Section 14.112.
         SECTION 24.  Section 348.506, Finance Code, is amended to
  read as follows:
         Sec. 348.506.  [ANNUAL] LICENSE FEE.  Not later than the 30th
  day before the date the license expires [December 1], a license
  holder shall pay to the commissioner for each license held a [an
  annual] fee [for the year beginning the next January 1,] in an
  amount determined as provided by Section 14.107.
         SECTION 25.  Subchapter F, Chapter 348, Finance Code, is
  amended by adding Section 348.5065 to read as follows:
         Sec. 348.5065.  GROUNDS FOR REFUSAL TO RENEW. The
  commissioner may refuse to renew the license of a person who fails
  to comply with an order issued by the commissioner to enforce this
  chapter.
         SECTION 26.  Section 348.507, Finance Code, is amended to
  read as follows:
         Sec. 348.507.  EXPIRATION OF LICENSE ON FAILURE TO PAY
  [ANNUAL] FEE.  If the [annual] fee for a license is not paid before
  the 16th day after the date on which the written notice of
  delinquency of payment has been given to the license holder, the
  license expires on [the later of:
               [(1)]  that day[; or
               [(2)     December 31 of the last year for which an annual
  fee was paid].
         SECTION 27.  Section 348.508, Finance Code, is amended to
  read as follows:
         Sec. 348.508.  LICENSE SUSPENSION OR REVOCATION. After
  notice and 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 28.  Section 349.301, Finance Code, is amended to
  read as follows:
         Sec. 349.301.  PAYMENT OF FEES. A person who registers or
  obtains or renews a license under this title after the date on which
  the person was required to register or to obtain or renew the
  license may limit the person's liability as provided by this
  subchapter by paying to the commissioner:
               (1)  all prior registration or license fees that the
  person should have paid under this title [for prior years]; and
               (2)  except as provided by Section 349.302(a), a late
  filing fee as provided by this subchapter.
         SECTION 29.  Section 351.006(b), Finance Code, is amended to
  read as follows:
         (b)  The [Notwithstanding Section 14.251, the] commissioner
  may assess an administrative penalty under Subchapter F, Chapter
  14, against a person who violates Section 32.06(b-1), Tax Code,
  regardless of whether the violation is knowing or wilful.
         SECTION 30.  Section 351.0515(c), Finance Code, is amended
  to read as follows:
         (c)  Subject to Section 14.112, the [The] finance commission
  shall adopt rules establishing procedures for issuing, renewing,
  and enforcing an individual license under this section. In adopting
  rules under this subsection, the finance commission shall ensure
  that:
               (1)  the minimum eligibility requirements for issuance
  of an individual license are the same as the requirements of Section
  180.055;
               (2)  the minimum eligibility requirements for renewal
  of an individual license are the same as the requirements of Section
  180.059; and
               (3)  the applicant pays:
                     (A)  an investigation fee in a reasonable amount
  determined by the commissioner; and
                     (B)  a [an annual] license fee in an amount
  determined as provided by Section 14.107.
         SECTION 31.  Section 351.101(c), Finance Code, is amended to
  read as follows:
         (c)  On the filing of each license application, the applicant
  shall pay to the commissioner [for the license's year of issuance] a
  license fee in an amount determined as provided by Section 14.107.
         SECTION 32.  Section 351.102(c), Finance Code, is amended to
  read as follows:
         (c)  The bond must be conditioned on:
               (1)  the license holder's faithful performance under
  this chapter and rules adopted under this chapter; and
               (2)  the payment of all amounts that become due to the
  state or another person under this chapter during the period
  [calendar year] for which the bond is given.
         SECTION 33.  Subchapter C, Chapter 351, Finance Code, is
  amended by adding Section 351.106 to read as follows:
         Sec. 351.106.  LICENSE TERM. A license issued under this
  chapter is valid for the period prescribed by finance commission
  rule adopted under Section 14.112.
         SECTION 34.  Subchapter D, Chapter 351, Finance Code, is
  amended by adding Section 351.1535 to read as follows:
         Sec. 351.1535.  GROUNDS FOR REFUSAL TO RENEW. The
  commissioner may refuse to renew the license of a person who fails
  to comply with an order issued by the commissioner to enforce this
  chapter.
         SECTION 35.  Section 351.154, Finance Code, is amended to
  read as follows:
         Sec. 351.154.  [ANNUAL] LICENSE FEE.  Not later than the 30th
  day before the date the license expires [December 1], a license
  holder shall pay to the commissioner for each license held a [an
  annual] fee [for the year beginning the next January 1,] in an
  amount determined as provided by Section 14.107.
         SECTION 36.  Section 351.155, Finance Code, is amended to
  read as follows:
         Sec. 351.155.  EXPIRATION OF LICENSE ON FAILURE TO PAY
  [ANNUAL] FEE.  If the [annual] fee for a license is not paid before
  the 16th day after the date on which the written notice of
  delinquency of payment has been given to the license holder, the
  license expires on [the later of:
               [(1)]  that day[; or
               [(2)     December 31 of the last year for which an annual
  fee was paid].
         SECTION 37.  Section 351.156, Finance Code, is amended to
  read as follows:
         Sec. 351.156.  LICENSE SUSPENSION OR REVOCATION. After
  notice and 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 38.  Section 352.003, Finance Code, is amended by
  amending Subsections (a) and (c) and adding Subsections (a-1),
  (c-1), and (f) to read as follows:
         (a)  To register as a facilitator, a person must provide to
  the commissioner[, on or before December 31 preceding each calendar
  year in which the person seeks to act as a facilitator]:
               (1)  a list of each location in this state at which
  e-file providers authorized by the Internal Revenue Service file
  tax returns on behalf of borrowers for whom the facilitator acts to
  allow the making of a refund anticipation loan; and
               (2)  a processing fee for each location included on the
  list furnished under Subdivision (1).
         (a-1)  A registration issued under this section is valid for
  the period prescribed by finance commission rule adopted under
  Section 14.112.
         (c)  The finance commission by rule shall establish a
  deadline for the submission of the information and fee required by
  Subsection (a) for initial issuance and renewal of registrations
  under this section.
         (c-1)  After the applicable [December 31] deadline for
  initial or renewal registrations, a facilitator may amend the
  registration required under Subsection (a) to reflect any change in
  the information provided by the registration.
         (f)  The commissioner may refuse to renew the registration of
  a person who fails to comply with an order issued by the
  commissioner to enforce this chapter.
         SECTION 39.  Section 352.007, Finance Code, is amended to
  read as follows:
         Sec. 352.007.  ADMINISTRATIVE PENALTY. The commissioner may
  assess an administrative penalty of $500 against a person for each
  [knowing and wilful] violation of this chapter.
         SECTION 40.  Section 353.502(b), Finance Code, is amended to
  read as follows:
         (b)  On the filing of a license application, the applicant
  shall pay to the commissioner:
               (1)  an investigation fee not to exceed $200; and
               (2)  [for the license's year of issuance,] a license fee
  in an amount determined as provided by Section 14.107.
         SECTION 41.  Subchapter F, Chapter 353, Finance Code, is
  amended by adding Section 353.5055 to read as follows:
         Sec. 353.5055.  LICENSE TERM. A license issued under this
  chapter is valid for the period prescribed by finance commission
  rule adopted under Section 14.112.
         SECTION 42.  Section 353.506, Finance Code, is amended to
  read as follows:
         Sec. 353.506.  [ANNUAL] LICENSE FEE. Not later than the 30th
  day before the date the license expires [December 1], a license
  holder shall pay to the commissioner for each license held a [an
  annual] fee [for the year beginning the next January 1,] in an
  amount determined as provided by Section 14.107.
         SECTION 43.  Subchapter F, Chapter 353, Finance Code, is
  amended by adding Section 353.5065 to read as follows:
         Sec. 353.5065.  GROUNDS FOR REFUSAL OF RENEWAL. The
  commissioner may refuse to renew the license of a person who fails
  to comply with an order issued by the commissioner to enforce this
  chapter.
         SECTION 44.  Section 353.507, Finance Code, is amended to
  read as follows:
         Sec. 353.507.  EXPIRATION OF LICENSE ON FAILURE TO PAY
  [ANNUAL] FEE. If the [annual] fee for a license is not paid before
  the 16th day after the date on which the written notice of
  delinquency of payment has been given to the license holder, the
  license expires on [the later of:
               [(1)]  that day[; or
               [(2)     December 31 of the last year for which an annual
  fee was paid].
         SECTION 45.  Section 353.508, Finance Code, is amended to
  read as follows:
         Sec. 353.508.  LICENSE SUSPENSION OR REVOCATION. After
  notice and 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 46.  Section 354.005(d), Finance Code, is amended to
  read as follows:
         (d)  The commissioner may deny approval of a form only if the
  form excludes the language required by Sections 354.003 and 354.004
  or contains any inconsistent or misleading provisions. All form
  denials, after an opportunity for a hearing under Chapter 2001,
  Government Code, may be appealed to a district court in accordance
  with that chapter [the finance commission].
         SECTION 47.  Section 371.002, Finance Code, is amended to
  read as follows:
         Sec. 371.002.  PURPOSES. The purposes of this chapter are
  to:
               (1)  prevent fraud, unfair practices, discrimination,
  imposition, and abuse of state residents;
               (2)  exercise the state's police power to ensure a sound
  system of making pawn loans and transfers of personal property by
  and through pawnshops;
               (3)  prevent transactions in stolen property and other
  unlawful property transactions by licensing and regulating
  pawnbrokers [and pawnshop employees];
               (4)  provide for licensing and investigation fees;
               (5)  provide minimum capital requirements for
  pawnbrokers;
               (6)  ensure financial responsibility to the state and
  its residents and compliance with federal, state, and local law,
  including rules and ordinances; and
               (7)  assist local governments in the exercise of their
  police power.
         SECTION 48.  Section 371.052(a), Finance Code, is amended to
  read as follows:
         (a)  To be eligible for a pawnshop license, an applicant
  must:
               (1)  [be of good moral character;
               [(2)]  meet the net assets requirement of Section
  371.072; and
               (2) [(3)]  show that:
                     (A)  the pawnshop will be operated lawfully and
  fairly under this chapter; and
                     (B)  the applicant or the applicant's owners and
  managers have the financial responsibility, experience, character,
  and general fitness to command the confidence of the public in the
  pawnshop's operations.
         SECTION 49.  Section 371.055, Finance Code, is amended to
  read as follows:
         Sec. 371.055.  FEES; PROOF OF INSURANCE. An applicant must
  submit with the application:
               (1)  an investigation fee of:
                     (A)  $500 if the applicant does not hold a
  license; or
                     (B)  $250 if the application:
                           (i)  is for an additional license for a
  separate location; or
                           (ii)  involves substantially identical
  principals and owners of a licensed pawnshop at a separate
  location;
               (2)  a [an annual] fee in an amount determined as
  provided by Section 14.107; and
               (3)  proof of general liability and fire insurance in a
  reasonable amount and form required by the commissioner.
         SECTION 50.  Section 371.062, Finance Code, is amended to
  read as follows:
         Sec. 371.062.  DISPOSITION OF FEES ON DENIAL OF APPLICATION.
  If the commissioner denies the application, the commissioner shall
  retain the investigation fee and shall return to the applicant the
  [annual] license fee submitted with the application.
         SECTION 51.  Subchapter B, Chapter 371, Finance Code, is
  amended by adding Section 371.0625 to read as follows:
         Sec. 371.0625.  LICENSE TERM. A license issued under this
  chapter is valid for the period prescribed by finance commission
  rule adopted under Section 14.112.
         SECTION 52.  Section 371.064, Finance Code, is amended to
  read as follows:
         Sec. 371.064.  [ANNUAL] LICENSE FEE; EXPIRATION. (a) Not
  later than the 30th day before the date the license expires
  [December 1], a pawnbroker shall pay to the commissioner for each
  license held a [an annual] fee in an amount determined as provided
  by Section 14.107 [for the year beginning the next January 1].
         (b)  If the [annual] fee for a license is not paid before the
  16th day after the date on which written notice of delinquency of
  payment has been given to the pawnbroker by the commissioner, the
  license expires on [the later of:
               [(1)]  that day[; or
               [(2)     December 31 of the last year for which an annual
  fee was paid].
         SECTION 53.  Subchapter B, Chapter 371, Finance Code, is
  amended by adding Section 371.0645 to read as follows:
         Sec. 371.0645.  GROUNDS FOR REFUSAL TO RENEW. The
  commissioner may refuse to renew the license of a person who fails
  to comply with an order issued by the commissioner to enforce this
  chapter.
         SECTION 54.  Subchapter B, Chapter 371, Finance Code, is
  amended by adding Section 371.074 to read as follows:
         Sec. 371.074.  PAWNBROKER RESPONSIBLE FOR EMPLOYEES AND
  AGENTS. A license holder under this subchapter is responsible for
  all acts of the license holder's officers, directors, employees,
  and agents acting on behalf of the pawnshop. 
         SECTION 55.  Section 371.251(a), Finance Code, is amended to
  read as follows:
         (a)  After notice and 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 56.  Section 371.257(a), Finance Code, is amended to
  read as follows:
         (a)  The holder of a pawnshop license [or a pawnshop employee
  license] may surrender the license by delivering it to the
  commissioner with written notice of surrender.
         SECTION 57.  Section 371.258, Finance Code, is amended to
  read as follows:
         Sec. 371.258.  REINSTATEMENT OF LICENSE. (a) This section
  applies to a pawnshop license [or a pawnshop employee license].
         (b)  The commissioner may reinstate a suspended pawnshop
  license [or pawnshop employee license] or issue a new license to the
  person whose license or licenses have been revoked if no fact or
  condition exists that clearly would have justified refusal to issue
  the license originally.
         (c)  The commissioner shall reinstate an expired pawnbroker
  license if, not later than the 180th day after the date on which the
  license expired, the pawnbroker pays the commissioner the
  delinquent $125 [annual] fee plus a reinstatement fee of $1,000.
  After a pawnbroker's license has expired, the commissioner shall
  promptly send notice of reinstatement rights to the delinquent
  pawnbroker by certified mail.
         SECTION 58.  Section 371.259, Finance Code, is amended to
  read as follows:
         Sec. 371.259.  CERTIFICATE OF STANDING; COPIES. The
  commissioner, under the commissioner's seal and signature, shall
  provide a certificate of good standing or a certified copy of a
  pawnshop license [or a pawnshop employee license] to a person who
  applies and pays for the certificate or copy.
         SECTION 59.  Section 393.224, Finance Code, is amended to
  read as follows:
         Sec. 393.224.  ADMINISTRATIVE PENALTY. The consumer credit
  commissioner, in accordance with rules adopted by the Finance
  Commission of Texas, may assess an administrative penalty against a
  credit access business that [knowingly and wilfully] violates this
  subchapter or a rule adopted under this subchapter in the manner
  provided by Subchapter F, Chapter 14.
         SECTION 60.  Section 393.604(c), Finance Code, is amended to
  read as follows:
         (c)  On the filing of each license application, the applicant
  shall pay to the commissioner [for the license's year of issuance] a
  license fee in an amount determined as provided by Section 14.107.
         SECTION 61.  Section 393.605(c), Finance Code, is amended to
  read as follows:
         (c)  The bond must be conditioned on:
               (1)  the license holder's faithful performance under
  this subchapter and rules adopted under this subchapter; and
               (2)  the payment of all amounts that become due to this
  state or another person under this subchapter during the period
  [calendar year] for which the bond is given.
         SECTION 62.  Subchapter G, Chapter 393, Finance Code, is
  amended by adding Sections 393.6085 and 393.6115 to read as
  follows:
         Sec. 393.6085.  LICENSE TERM. A license issued under this
  chapter is valid for the period prescribed by finance commission
  rule adopted under Section 14.112.
         Sec. 393.6115.  GROUNDS FOR REFUSAL TO RENEW. The
  commissioner may refuse to renew the license of a credit access
  business who fails to comply with an order issued by the
  commissioner to enforce this chapter.
         SECTION 63.  Section 393.612, Finance Code, is amended to
  read as follows:
         Sec. 393.612.  [ANNUAL] LICENSE FEE. Not later than the 30th
  day before the date the license expires [December 1], a license
  holder shall pay to the commissioner for each license held a [an
  annual] fee [for the year beginning the next January 1,] in an
  amount determined as provided by Section 14.107.
         SECTION 64.  Section 393.613, Finance Code, is amended to
  read as follows:
         Sec. 393.613.  EXPIRATION OF LICENSE ON FAILURE TO PAY
  [ANNUAL] FEE. If the [annual] fee for a license is not paid before
  the 16th day after the date on which the written notice of
  delinquency of payment has been given to the license holder, the
  license expires on [the later of:
               [(1)]  that day[; or
               [(2)     December 31 of the last year for which an annual
  fee was paid].
         SECTION 65.  Section 393.614(a), Finance Code, is amended to
  read as follows:
         (a)  After notice and 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 66.  Section 394.204, Finance Code, is amended by
  amending Subsections (b), (f), (g), and (k) and adding Subsection
  (j-1) to read as follows:
         (b)  A registration issued under this section is valid for
  the period prescribed by finance commission rule adopted under
  Section 14.112 [Registration expires on December 31 of the year in
  which the registration occurs and must be renewed annually].
         (f)  Subject to Subsection (j-1), a [A] person may renew a
  registration by paying the appropriate fee and completing all
  required documents.
         (g)  Subject to Section 14.112, the [The] finance commission
  by rule may establish procedures to facilitate the registration and
  collection of fees under this section[, including rules staggering
  throughout the year the dates on which fees are due].
         (j-1)  The commissioner may refuse to renew the registration
  of a person who fails to comply with an order issued by the
  commissioner to enforce this chapter.
         (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
  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 67.  Section 394.205(b), Finance Code, is amended to
  read as follows:
         (b)  Each provider shall file a report with the commissioner
  at each renewal of the provider's registration.  The report must at
  a minimum disclose in detail and under appropriate headings:
               (1)  the assets and liabilities of the provider at the
  beginning and end of the period, if the provider is a nonprofit or
  tax exempt organization;
               (2)  the total number of debt management plans the
  provider has initiated on behalf of consumers in this state during
  that period [year]; and
               (3)  records of total and average fees charged to
  consumers, including all voluntary contributions received from
  consumers.
         SECTION 68.  Section 394.214(e), Finance Code, is amended to
  read as follows:
         (e)  The commissioner may enforce this subchapter and rules
  adopted under this subchapter by:
               (1)  ordering the violator to cease and desist from the
  violation and any similar violations;
               (2)  ordering the violator to take affirmative action
  to correct the violation, including the restitution of money or
  property to a person aggrieved by the violation;
               (3)  imposing an administrative penalty not to exceed
  $1,000 for each violation as provided by Subchapter F, Chapter 14;
  or
               (4)  rejecting an initial application, refusing to
  renew a registration, or revoking or suspending a registration as
  provided by Section 394.204.
         SECTION 69.  Section 1956.0612, Occupations Code, is amended
  by amending Subsections (b) and (d) and adding Subsections (b-1),
  (d-1), and (h) to read as follows:
         (b)  To register as a dealer, a person must provide to the
  commissioner[, on or before December 31 preceding each calendar
  year in which the person seeks to act as a dealer]:
               (1)  a list of each location in this state at which the
  person will conduct business as a dealer; and
               (2)  a processing fee for each location included on the
  list furnished under Subdivision (1).
         (b-1)  A registration issued under this section is valid for
  the period prescribed by commission rule adopted under Section
  14.112, Finance Code.
         (d)  The commission by rule shall establish a deadline for
  the submission of the information and fee required by Subsection
  (b) for initial issuance and renewal of registrations under this
  section.
         (d-1)  After the applicable [December 31] deadline for
  initial or renewal registrations, a dealer may amend the
  registration required under Subsection (a) to reflect any change in
  the information provided by the registration.
         (h)  The commissioner may refuse to renew the registration of
  a person who fails to comply with an order issued by the
  commissioner to enforce this chapter.
         SECTION 70.  Section 1956.0614(a), Occupations Code, is
  amended to read as follows:
         (a)  The commissioner may revoke the registration of a dealer
  if the commissioner concludes that the dealer has violated this
  chapter or an order issued by the commissioner to enforce this
  chapter.  The commissioner shall recite the basis of the decision in
  an order revoking the registration.
         SECTION 71.  Section 1956.0615, Occupations Code, is amended
  to read as follows:
         Sec. 1956.0615.  ADMINISTRATIVE PENALTY. The commissioner
  may assess an administrative penalty not to exceed $500 against a
  person for each [knowing and wilful] violation of this chapter.
         SECTION 72.  The following provisions of the Finance Code
  are repealed:
               (1)  Section 14.208(d);
               (2)  Section 351.0023(g);
               (3)  Section 371.052(b);
               (4)  Subchapter C, Chapter 371;
               (5)  Sections 371.255 and 371.256; and
               (6)  Sections 371.304(b), (c), and (d).
         SECTION 73.  Section 14.112, Finance Code, as added by this
  Act, applies only to a license or registration issued or renewed on
  or after September 1, 2019. A license or registration issued or
  renewed before that date is governed by the law in effect
  immediately before the effective date of this Act, and the former
  law is continued in effect for that purpose.
         SECTION 74.  (a)  On the effective date of this Act, a
  license issued under former Section 371.104, Finance Code, expires.
         (b)  The repeal of a law by this Act does not entitle a person
  to a refund of an application, licensing, or other fee paid by the
  person before the effective date of this Act.
         SECTION 75.  The changes in law made by this Act do not
  affect the validity of a disciplinary action or other proceeding
  that was initiated before the effective date of this Act and that is
  pending before a court or other governmental entity on that date.
         SECTION 76.  (a)  A violation of a law that is repealed by
  this Act is governed by the law in effect on the date the violation
  was committed, and the former law is continued in effect for that
  purpose.
         (b)  For purposes of this section, a violation was committed
  before the effective date of this Act if any element of the
  violation occurred before that date.
         SECTION 77.  This Act takes effect September 1, 2019.