Bill Text: TX SB1949 | 2019-2020 | 86th Legislature | Engrossed
Bill Title: Relating to the applicability of laws of this state to certain consumer financial transactions.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Engrossed - Dead) 2019-04-29 - Referred to Pensions, Investments & Financial Services [SB1949 Detail]
Download: Texas-2019-SB1949-Engrossed.html
By: Watson, Birdwell | S.B. No. 1949 | |
Buckingham |
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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. |