Texas 2009 - 81st Regular

Texas House Bill HB3304 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R10935 CLG-D
2	2	By: Kent H.B. No. 3304
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of credit services organizations.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. The heading to Subchapter B, Chapter 393,
10	10	Finance Code, is amended to read as follows:
11	11	SUBCHAPTER B. REGISTRATION, LICENSING, AND DISCLOSURE STATEMENTS
12	12	SECTION 2. Subchapter B, Chapter 393, Finance Code, is
13	13	amended by adding Sections 393.1045 and 393.1046 to read as
14	14	follows:
15	15	Sec. 393.1045. LICENSE REQUIRED FOR SERVICES FOR CERTAIN
16	16	LOANS. (a) This section applies only to a credit services
17	17	organization that obtains, facilitates, or assists a consumer to
18	18	obtain an extension of consumer credit in which any of the following
19	19	is given as security for or in connection with the debt:
20	20	(1) the consumer's personal check to be cashed or
21	21	deposited at a designated future date; or
22	22	(2) an authorization to debit at a designated future
23	23	date a deposit account maintained by the consumer.
24	24	(b) A credit services organization must be licensed by the
25	25	Office of Consumer Credit Commissioner as provided by this section
26	26	to engage in an activity described by Subsection (a).
27	27	(c) The Finance Commission of Texas shall adopt rules as
28	28	necessary:
29	29	(1) to establish procedures for issuing, renewing, and
30	30	enforcing a license under this section;
31	31	(2) to set a maximum fee for the services to be
32	32	performed by a credit services organization in connection with an
33	33	activity described by Subsection (a); and
34	34	(3) for the administration of this section and Section
35	35	393.1046.
36	36	Sec. 393.1046. EXAMINATION OF CERTAIN ORGANIZATIONS;
37	37	ACCESS TO RECORDS. (a) The consumer credit commissioner or the
38	38	commissioner's representative shall, at the times the commissioner
39	39	considers necessary:
40	40	(1) examine each place of business of each credit
41	41	services organization licensed under Section 393.1045; and
42	42	(2) investigate the credit services organization's
43	43	transactions, including contracts, books, records, accounts,
44	44	papers, and correspondence, to the extent the transactions and
45	45	records pertain to the activities regulated under Section 393.1045.
46	46	(b) The credit services organization shall:
47	47	(1) give the consumer credit commissioner or the
48	48	commissioner's representative free access to the organization's
49	49	office, place of business, files, safes, and vaults; and
50	50	(2) allow the commissioner or the commissioner's
51	51	authorized representative to make a copy of an item that may be
52	52	investigated under Subsection (a)(2).
53	53	(c) During an examination, the consumer credit commissioner
54	54	or the commissioner's representative may administer oaths and
55	55	examine any person under oath on any subject pertinent to a matter
56	56	that the commissioner is authorized or required to consider,
57	57	investigate, or secure information about under Section 393.1045.
58	58	(d) Information obtained under this section is
59	59	confidential.
60	60	(e) A credit services organization's violation of
61	61	Subsection (b) is a ground for the suspension or revocation of the
62	62	organization's license.
63	63	SECTION 3. Not later than October 1, 2009, the Finance
64	64	Commission of Texas shall adopt rules required by Section 393.1045,
65	65	Finance Code, as added by this Act.
66	66	SECTION 4. A credit services organization is not required
67	67	to obtain a license under Section 393.1045, Finance Code, as added
68	68	by this Act, until January 1, 2010.
69	69	SECTION 5. (a) Except as provided by Subsection (b) of this
70	70	section, this Act takes effect September 1, 2009.
71	71	(b) Section 393.1046, Finance Code, as added by this Act,
72	72	takes effect January 1, 2010.