H.B. No. 4219
 
 
 
 
AN ACT
  relating to the maximum rate or amount of interest of certain
  consumer loans.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 342.201, Finance Code, is amended by
  amending Subsection (e) and adding Subsections (e-2) and (e-3) to
  read as follows:
         (e)  A loan contract under this chapter that is not secured
  by real property may provide for a rate or amount of interest
  computed using the true daily earnings method or the scheduled
  installment earnings method that does not exceed:
               (1)  30 percent plus the federal funds rate a year on
  that part of the cash advance that is less than or equal to the
  amount computed under Subchapter C, Chapter 341, using the
  reference base amount of $500;
               (2)  24 percent plus the federal funds rate a year on
  that part of the cash advance that is more than the amount computed
  for Subdivision (1) but less than or equal to an amount computed
  under Subchapter C, Chapter 341, using the reference base amount of
  $1,050; and
               (3)  18 percent plus the federal funds rate a year on
  that part of the cash advance that is more than the amount computed
  for Subdivision (2) but less than or equal to an amount computed
  under Subchapter C, Chapter 341, using the reference base amount of
  $2,500.
         (e-2)  On March 1 and September 1 of each year, the
  commissioner shall compute the ceilings applicable under
  Subsection (e) for the six-month period effective the following May
  1 and November 1, respectively. As prescribed by this subsection,
  the ceilings are effective for the six-month period beginning on
  the effective date and are subject to adjustment after each
  six-month period. The commissioner shall submit to the secretary
  of state for publication in the Texas Register the ceilings
  computed under this subsection not later than the 11th day after the
  date on which the ceiling is computed.
         (e-3)  For purposes of this section:
               (1)  "Ceiling" means the maximum rate or amount of
  interest.
               (2)  "Federal funds rate" means an interest rate
  computed by averaging the Federal Funds rates published by the
  Federal Reserve Bank of New York for each day during the six
  calendar months preceding the computation date of the ceilings,
  except that if that average:
                     (A)  is greater than five percent, the federal
  funds rate is five percent; and
                     (B)  is less than zero percent, the federal funds
  rate is zero percent.
         SECTION 2.  The change in law made by this Act applies only
  to a loan made on or after the effective date of this Act. A loan
  made before the effective date of this Act is governed by the law in
  effect on the date the loan was made, and the former law is
  continued in effect for that purpose. For purposes of this section,
  a refinance or renewal of a loan is considered made on the date the
  loan being refinanced or renewed was made.
         SECTION 3.  This Act takes effect September 1, 2023.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4219 was passed by the House on May 9,
  2023, by the following vote:  Yeas 130, Nays 13, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 4219 was passed by the Senate on May
  22, 2023, by the following vote:  Yeas 28, Nays 3.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor