|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the applicability of laws of this state to certain |
|
consumer financial transactions. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 342.005, Finance Code, is amended to |
|
read as follows: |
|
Sec. 342.005. APPLICABILITY OF CHAPTER. Except as provided |
|
by Sections 302.001(d) and 342.004(c), a loan is subject to this |
|
chapter if the loan: |
|
(1) provides for interest in excess of 10 percent a |
|
year; |
|
(2) is extended primarily for personal, family, or |
|
household use to a person who is located in this state at the time |
|
the loan is made; |
|
(3) is made by a person engaged in the business of |
|
making, arranging, or negotiating those types of loans; and |
|
(4) either: |
|
(A) is not secured by a lien on real property; or |
|
(B) is described by Section 342.001(4), 342.301, |
|
or 342.456 and is predominantly payable in monthly installments. |
|
SECTION 2. The heading to Section 342.053, Finance Code, is |
|
amended to read as follows: |
|
Sec. 342.053. AREA OF BUSINESS; LOANS BY MAIL OR ONLINE. |
|
SECTION 3. Section 342.053(b), Finance Code, is amended to |
|
read as follows: |
|
(b) A lender may make, negotiate, arrange, and collect loans |
|
by mail or online from a licensed office. |
|
SECTION 4. Section 343.002, Finance Code, is amended to |
|
read as follows: |
|
Sec. 343.002. APPLICABILITY. (a) This chapter applies to |
|
a loan under this chapter that is extended to a person who is |
|
located in this state at the time the loan is made. |
|
(b) This chapter does not apply to: |
|
(1) a reverse mortgage; or |
|
(2) an open-end account, as defined by Section |
|
301.002. |
|
SECTION 5. Section 345.007, Finance Code, is amended by |
|
adding Subsection (d) to read as follows: |
|
(d) This chapter applies to a retail installment |
|
transaction extended to a person who is located in this state at the |
|
time the transaction is entered into. |
|
SECTION 6. Section 346.004(a), Finance Code, is amended to |
|
read as follows: |
|
(a) Unless the contract for the account provides otherwise, |
|
this chapter applies to a revolving credit account described by |
|
Section 346.003 if the loan or extension of credit is extended |
|
primarily for personal, family, or household use to a person who is |
|
located in this state at the time the loan is made or the extension |
|
of credit is entered into. |
|
SECTION 7. Subchapter A, Chapter 347, Finance Code, is |
|
amended by adding Section 347.008 to read as follows: |
|
Sec. 347.008. APPLICABILITY. Each credit transaction |
|
extended to a person who is located in this state at the time the |
|
transaction is entered into is subject to this chapter. |
|
SECTION 8. Section 348.007(a), Finance Code, is amended to |
|
read as follows: |
|
(a) Except as otherwise provided by this section, each |
|
retail installment transaction extended to a person who is located |
|
in this state at the time the transaction is entered into is subject |
|
to this chapter. |
|
SECTION 9. Subchapter A, Chapter 351, Finance Code, is |
|
amended by adding Section 351.012 to read as follows: |
|
Sec. 351.012. APPLICABILITY OF CHAPTER. This chapter |
|
applies to a property tax loan that is extended to a person for |
|
payment of property taxes on real property located in this state. |
|
SECTION 10. The heading to Section 351.053, Finance Code, |
|
is amended to read as follows: |
|
Sec. 351.053. AREA OF BUSINESS; PROPERTY TAX LOANS BY MAIL |
|
OR ONLINE. |
|
SECTION 11. Section 351.053(b), Finance Code, is amended to |
|
read as follows: |
|
(b) A property tax lender may make, negotiate, arrange, and |
|
collect property tax loans by mail or online from a licensed office. |
|
SECTION 12. Chapter 352, Finance Code, is amended by adding |
|
Section 352.009 to read as follows: |
|
Sec. 352.009. APPLICABILITY OF CHAPTER. This chapter |
|
applies to a refund anticipation loan that is extended to a person |
|
who is located in this state at the time the loan is made. |
|
SECTION 13. Section 371.003(8), Finance Code, is amended to |
|
read as follows: |
|
(8) "Pawn transaction" means the pledging, by a person |
|
present in this state at the time of the transaction, with a |
|
pawnbroker of a single item of goods as security for a loan of |
|
money. |
|
SECTION 14. Section 393.602(a), Finance Code, is amended to |
|
read as follows: |
|
(a) This subchapter applies only to a credit services |
|
organization that, with respect to a consumer who is located in this |
|
state at the time of the transaction, obtains for a consumer or |
|
assists a consumer in obtaining an extension of consumer credit in |
|
the form of: |
|
(1) a deferred presentment transaction; or |
|
(2) a motor vehicle title loan. |
|
SECTION 15. This Act takes effect September 1, 2019. |