81R10935 CLG-D
By: Kent H.B. No. 3304
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of credit services organizations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter B, Chapter 393,
Finance Code, is amended to read as follows:
SUBCHAPTER B. REGISTRATION, LICENSING, AND DISCLOSURE STATEMENTS
SECTION 2. Subchapter B, Chapter 393, Finance Code, is
amended by adding Sections 393.1045 and 393.1046 to read as
follows:
Sec. 393.1045. LICENSE REQUIRED FOR SERVICES FOR CERTAIN
LOANS. (a) This section applies only to a credit services
organization that obtains, facilitates, or assists a consumer to
obtain an extension of consumer credit in which any of the following
is given as security for or in connection with the debt:
(1) the consumer's personal check to be cashed or
deposited at a designated future date; or
(2) an authorization to debit at a designated future
date a deposit account maintained by the consumer.
(b) A credit services organization must be licensed by the
Office of Consumer Credit Commissioner as provided by this section
to engage in an activity described by Subsection (a).
(c) The Finance Commission of Texas shall adopt rules as
necessary:
(1) to establish procedures for issuing, renewing, and
enforcing a license under this section;
(2) to set a maximum fee for the services to be
performed by a credit services organization in connection with an
activity described by Subsection (a); and
(3) for the administration of this section and Section
393.1046.
Sec. 393.1046. EXAMINATION OF CERTAIN ORGANIZATIONS;
ACCESS TO RECORDS. (a) The consumer credit commissioner or the
commissioner's representative shall, at the times the commissioner
considers necessary:
(1) examine each place of business of each credit
services organization licensed under Section 393.1045; and
(2) investigate the credit services organization's
transactions, including contracts, books, records, accounts,
papers, and correspondence, to the extent the transactions and
records pertain to the activities regulated under Section 393.1045.
(b) The credit services organization shall:
(1) give the consumer credit commissioner or the
commissioner's representative free access to the organization's
office, place of business, files, safes, and vaults; and
(2) allow the commissioner or the commissioner's
authorized representative to make a copy of an item that may be
investigated under Subsection (a)(2).
(c) During an examination, the consumer credit commissioner
or the commissioner's representative may administer oaths and
examine any person under oath on any subject pertinent to a matter
that the commissioner is authorized or required to consider,
investigate, or secure information about under Section 393.1045.
(d) Information obtained under this section is
confidential.
(e) A credit services organization's violation of
Subsection (b) is a ground for the suspension or revocation of the
organization's license.
SECTION 3. Not later than October 1, 2009, the Finance
Commission of Texas shall adopt rules required by Section 393.1045,
Finance Code, as added by this Act.
SECTION 4. A credit services organization is not required
to obtain a license under Section 393.1045, Finance Code, as added
by this Act, until January 1, 2010.
SECTION 5. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2009.
(b) Section 393.1046, Finance Code, as added by this Act,
takes effect January 1, 2010.