By: Watson, Birdwell, Buckingham S.B. No. 1949
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the applicability of Texas law to consumer financial
  transactions extended to persons located in this state at the time
  the transaction is entered into.
         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 entered into;
               (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.  Section 342.053, Finance Code, is amended to
  read as follows:
         Sec. 342.053.  AREA OF BUSINESS; LOANS ONLINE OR BY MAIL.
  (a)  A lender is not limited to making loans to residents of the
  community in which the office for which the license or other
  authority is granted.
         (b)  A lender may make, negotiate, arrange, and collect loans
  online from a licensed office, or by mail from a licensed office.
         SECTION 3.  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 entered into.
         (b)  This chapter does not apply to:
               (1)  a reverse mortgage; or
               (2)  an open-end account, as defined by Section
  301.002.
         SECTION 4.  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 5.  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 or extension of credit is
  entered into.
         SECTION 6.  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 7.  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 8.  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 who is
  located in this state at the time the loan is entered into.
         SECTION 9.  Subchapter A, Chapter 352, Finance Code, is
  amended by adding Section 352.009 to read as follows:
         Sec. 352.009.  APPLICABILITY OF CHAPTER. A refund
  anticipation loan that is extended to a person who is located in
  this state at the time the transaction is entered into is subject to
  this chapter.
         SECTION 10.  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 11.  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 12.  The changes in law made by this Act apply only
  to a loan, installment, transaction, or extension of consumer
  credit, as applicable, made on or after the effective date of this
  Act. A loan, installment, transaction, or extension of consumer
  credit made before the effective date of this Act is governed by the
  law in effect on the date the loan, installment, transaction, or
  extension of consumer credit, as applicable, was made and the
  former law is continued in effect for that purpose. For purposes of
  this section, a refinance of a loan, installment, transaction, or
  extension of consumer credit is considered made on the date the
  loan, installment, transaction, or extension of consumer credit
  being refinanced was made.
         SECTION 13.  This Act takes effect September 1, 2019.