Bill Text: TX SB603 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the continuation and functions of the Office of Consumer Credit Commissioner and the licensing and registration of persons regulated by that state agency.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2019-02-21 - Referred to Business & Commerce [SB603 Detail]
Download: Texas-2019-SB603-Introduced.html
86R2054 GRM-D | ||
By: Hall, et al. | S.B. No. 603 |
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relating to the continuation and functions of the Office of | ||
Consumer Credit Commissioner and the licensing and registration of | ||
persons regulated by that state agency. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 14.062, Finance Code, is amended to read | ||
as follows: | ||
Sec. 14.062. CONSUMER INFORMATION AND COMPLAINTS. (a) The | ||
office shall maintain a system to promptly and efficiently act on | ||
complaints [ |
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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 [ |
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(b) The office shall make information available describing | ||
its procedures for [ |
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investigation and resolution. | ||
(c) The office[ |
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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 [ |
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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 [ |
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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 | ||
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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) [ |
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(3) [ |
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business; | ||
(4) [ |
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(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 [ |
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(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; [ |
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(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 [ |
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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[ |
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(2) [ |
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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 | ||
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accordance with that chapter [ |
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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 [ |
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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 [ |
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adopted under Chapter 393. | ||
(b) The commissioner may order the following businesses or | ||
other persons [ |
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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 [ |
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SECTION 10. Section 342.0515(c), Finance Code, is amended | ||
to read as follows: | ||
(c) Subject to Section 14.112, the [ |
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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 [ |
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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 [ |
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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 | ||
[ |
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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. [ |
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before the date the license expires [ |
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shall pay to the commissioner for each license held a [ |
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fee [ |
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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 | ||
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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 [ |
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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 [ |
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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 [ |
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which a retail installment transaction is originated, serviced, or | ||
collected. | ||
(b) Subject to Section 14.112, the [ |
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by rule may establish procedures to facilitate the registration and | ||
collection of fees under this section[ |
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(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 [ |
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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 [ |
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by rule may establish procedures to facilitate the registration and | ||
collection of fees under this section[ |
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(d) A creditor shall file the registration renewal and pay | ||
the [ |
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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 [ |
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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 [ |
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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 [ |
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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 [ |
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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) [ |
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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. [ |
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day before the date the license expires [ |
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holder shall pay to the commissioner for each license held a [ |
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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 | ||
[ |
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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 [ |
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[ |
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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 [ |
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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 [ |
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(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 [ |
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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 [ |
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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 [ |
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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 [ |
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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 | ||
[ |
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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. [ |
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day before the date the license expires [ |
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holder shall pay to the commissioner for each license held a [ |
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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 | ||
[ |
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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 [ |
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[ |
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[ |
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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 [ |
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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[ |
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(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 [ |
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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 | ||
[ |
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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) [ |
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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. [ |
||
day before the date the license expires [ |
||
holder shall pay to the commissioner for each license held a [ |
||
|
||
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 | ||
[ |
||
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 [ |
||
[ |
||
[ |
||
|
||
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 [ |
||
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 [ |
||
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 [ |
||
(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) [ |
||
[ |
||
371.072; and | ||
(2) [ |
||
(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 [ |
||
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 | ||
[ |
||
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. [ |
||
later than the 30th day before the date the license expires | ||
[ |
||
license held a [ |
||
by Section 14.107 [ |
||
(b) If 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 [ |
||
[ |
||
[ |
||
|
||
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 [ |
||
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 [ |
||
|
||
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 [ |
||
(b) The commissioner may reinstate a suspended pawnshop | ||
license [ |
||
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 [ |
||
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 [ |
||
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 [ |
||
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 [ |
||
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 | ||
[ |
||
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. [ |
||
day before the date the license expires [ |
||
holder shall pay to the commissioner for each license held a [ |
||
|
||
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 | ||
[ |
||
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 [ |
||
[ |
||
[ |
||
|
||
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 [ |
||
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 [ |
||
|
||
(f) Subject to Subsection (j-1), a [ |
||
registration by paying the appropriate fee and completing all | ||
required documents. | ||
(g) Subject to Section 14.112, the [ |
||
by rule may establish procedures to facilitate the registration and | ||
collection of fees under this section[ |
||
|
||
(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 [ |
||
(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[ |
||
|
||
(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 [ |
||
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 [ |
||
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. |