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|
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A BILL TO BE ENTITLED
|
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AN ACT
|
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relating to the continuation and functions of the Office of |
|
Consumer Credit Commissioner and the licensing and registration of |
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persons regulated by that state agency. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 14.062, Finance Code, is amended to read |
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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:
|
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[(1) the name of the person who filed the complaint;
|
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[(2) the date the complaint is received by the office;
|
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[(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
|
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[(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. |