Texas 2009 - 81st Regular

Texas House Bill HB80 Compare Versions

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1	1	81R21154 CLG-F
2	2	By: Flynn, Hopson H.B. No. 80
3	3	Substitute the following for H.B. No. 80:
4	4	By: Flynn C.S.H.B. No. 80
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the regulation of credit reporting bureaus; providing
10	10	penalties.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle E, Title 3, Finance Code, is amended by
13	13	adding Chapter 158 to read as follows:
14	14	CHAPTER 158. CREDIT REPORTING BUREAUS
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 158.001. DEFINITIONS. In this chapter:
17	17	(1) "Commissioner" means the consumer credit
18	18	commissioner.
19	19	(2) "Credit reporting bureau" means a person who
20	20	engages in the practice of assembling or reporting credit
21	21	information about individuals for the purpose of furnishing the
22	22	information to a third party. The term does not include a business
23	23	or other person that reports to a credit reporting bureau
24	24	information relating to a debt owed to that business or person or to
25	25	a business or other person who holds a general distinguishing
26	26	number issued under Chapter 503, Transportation Code.
27	27	(3) "Finance commission" means the Finance Commission
28	28	of Texas.
29	29	(4) "Office" means the Office of Consumer Credit
30	30	Commissioner.
31	31	(5) "Principal," in connection with management of a
32	32	license holder or applicant, means a person who performs executive
33	33	functions or otherwise controls the executive affairs of a license
34	34	holder, including an owner, officer, director, partner, trustee, or
35	35	manager of the license holder.
36	36	[Sections 158.002-158.100 reserved for expansion]
37	37	SUBCHAPTER B. POWERS AND DUTIES OF OFFICE AND FINANCE COMMISSION
38	38	Sec. 158.101. ADMINISTRATION. The office shall administer
39	39	this chapter.
40	40	Sec. 158.102. RULES. (a) The finance commission may:
41	41	(1) adopt rules necessary to enforce and administer
42	42	this chapter, including rules relating to an application for a
43	43	license; and
44	44	(2) adopt rules to accomplish the purposes of Chapter
45	45	20, Business & Commerce Code, and any other law applicable to a
46	46	credit reporting bureau, including rules reasonable or necessary
47	47	to:
48	48	(A) implement and clarify Chapter 20, Business &
49	49	Commerce Code; and
50	50	(B) defray the cost of enforcing Chapter 20,
51	51	Business & Commerce Code, and any other law applicable to a credit
52	52	reporting bureau.
53	53	(b) In adopting rules under this section, the finance
54	54	commission shall consider the necessity to:
55	55	(1) promote a stable consumer reporting environment;
56	56	(2) provide adequate protection to consumers and their
57	57	personal identifying information; and
58	58	(3) ensure a consumer's ability to correct
59	59	information provided by a credit reporting bureau to third parties.
60	60	[Sections 158.103-158.200 reserved for expansion]
61	61	SUBCHAPTER C. APPLICATION FOR AND ISSUANCE OF LICENSE
62	62	Sec. 158.201. LICENSE REQUIREMENT. A credit reporting
63	63	bureau may not engage in the practice of assembling or reporting
64	64	credit information about individuals in this state for the purpose
65	65	of furnishing the information to a third party, as a service or for
66	66	consideration, unless the credit reporting bureau holds a license
67	67	issued under this chapter.
68	68	Sec. 158.202. APPLICATION. (a) An application for a
69	69	license must be in writing, sworn to, and filed with the
70	70	commissioner in the form the commissioner prescribes.
71	71	(b) The application must:
72	72	(1) state the full legal name, federal taxpayer
73	73	identification number or social security number, and business
74	74	address of:
75	75	(A) the applicant;
76	76	(B) each individual who is a principal of the
77	77	applicant; and
78	78	(C) each individual who is a principal of any
79	79	person that is a principal of the applicant; and
80	80	(2) disclose any other information that may be
81	81	required by rule or reasonably requested by the commissioner.
82	82	Sec. 158.203. ACCOMPANYING FEE, STATEMENTS, AND BOND. An
83	83	application for a license must be accompanied by:
84	84	(1) a nonrefundable application fee in an amount
85	85	established by rule that is sufficient to administer this chapter;
86	86	(2) audited financial statements of the applicant that
87	87	are reasonably satisfactory to the commissioner;
88	88	(3) the location of the home office of the applicant
89	89	and of the main office of the applicant in this state; and
90	90	(4) a surety bond in the amount of $100,000 that is:
91	91	(A) in a form satisfactory to the commissioner;
92	92	and
93	93	(B) issued by a bonding company or insurance
94	94	company authorized to do business in this state.
95	95	Sec. 158.204. ISSUANCE OF LICENSE. On the filing of an
96	96	application that meets the requirements of Sections 158.202 and
97	97	158.203, the commissioner shall issue a license to the applicant if
98	98	the commissioner:
99	99	(1) approves the documents; and
100	100	(2) finds that the bond is in the prescribed amount.
101	101	Sec. 158.205. DENIAL OF LICENSE; HEARING. (a) A hearing
102	102	must be held before a license may be denied.
103	103	(b) The commissioner shall give the applicant notice of the
104	104	hearing.
105	105	[Sections 158.206-158.300 reserved for expansion]
106	106	SUBCHAPTER D. REQUIREMENTS TO MAINTAIN LICENSE
107	107	Sec. 158.301. INSUFFICIENT BOND. (a) If the commissioner
108	108	at any time reasonably determines that the bond required by this
109	109	chapter is insecure or deficient in amount, the commissioner by
110	110	written order may require the license holder to file a new or
111	111	supplemental bond to secure compliance with this chapter.
112	112	(b) The license holder shall comply with the order not later
113	113	than the 30th day after the date on which the order is served.
114	114	Sec. 158.302. ANNUAL LICENSE FEE. (a) Not later than June
115	115	30 of each year, a license holder shall pay to the commissioner a
116	116	license renewal fee in an amount established by rule.
117	117	(b) The fee required by Section 158.203(1) satisfies the
118	118	license fee requirement for the first license year or part of that
119	119	year.
120	120	Sec. 158.303. REVOCATION OF LICENSE. (a) The commissioner
121	121	may revoke a license:
122	122	(1) on a ground on which the commissioner may refuse to
123	123	grant a license; or
124	124	(2) for a violation of this chapter.
125	125	(b) The commissioner may investigate the business and
126	126	records of a license holder if the commissioner has reasonable
127	127	cause to believe that grounds for revocation exist.
128	128	Sec. 158.304. HEARING ON LICENSE REVOCATION. (a) The
129	129	commissioner shall give a license holder an opportunity for a
130	130	hearing before a license may be revoked.
131	131	(b) The commissioner shall give the license holder notice of
132	132	the hearing.
133	133	[Sections 158.305-158.400 reserved for expansion]
134	134	SUBCHAPTER E. CRIMINAL PENALTIES AND CIVIL REMEDIES
135	135	Sec. 158.401. CRIMINAL PENALTY. (a) A person commits an
136	136	offense if the person intentionally:
137	137	(1) makes an untrue statement of a material fact in an
138	138	application or report required to be filed with the commissioner
139	139	under this chapter; or
140	140	(2) violates Section 158.201.
141	141	(b) An offense under this section is a third degree felony.
142	142	Sec. 158.402. ADMINISTRATIVE PENALTY. (a) The
143	143	commissioner may impose an administrative penalty on a person in an
144	144	amount specified by the commissioner if, after notice and hearing,
145	145	the commissioner finds the person has violated:
146	146	(1) this chapter;
147	147	(2) a rule adopted under this chapter; or
148	148	(3) an order of the commissioner issued under this
149	149	chapter.
150	150	(b) The amount of the penalty may not exceed:
151	151	(1) $1,000 for each violation; or
152	152	(2) $1,000 for each day the violation continues.
153	153	(c) In determining the amount of an administrative penalty,
154	154	the commissioner shall consider:
155	155	(1) the seriousness of the violation, including the
156	156	nature, circumstances, extent, and gravity of the prohibited act;
157	157	(2) the extent of actual or potential harm to a person;
158	158	(3) the history of violations;
159	159	(4) the amount necessary to deter future violations;
160	160	(5) efforts to correct the violation; and
161	161	(6) any other matter that justice may require.
162	162	(d) The enforcement of the penalty may be stayed during the
163	163	time the order is under judicial review if the person pays the
164	164	penalty to the clerk of the court or files a supersedeas bond with
165	165	the court in the amount of the penalty. A person who cannot afford
166	166	to pay the penalty or file the bond may stay the enforcement by
167	167	filing an affidavit in the manner required by the Texas Rules of
168	168	Civil Procedure for a party who cannot afford to file security for
169	169	costs, subject to the right of the commissioner to contest the
170	170	affidavit as provided by those rules.
171	171	(e) The attorney general may sue to collect the penalty.
172	172	(f) A proceeding to impose the penalty is considered to be a
173	173	contested case under Chapter 2001, Government Code.
174	174	Sec. 158.403. SUIT BY ATTORNEY GENERAL. The attorney
175	175	general may sue on behalf of claimants on the bond required by
176	176	Section 158.203(4) in a district court in Travis County, either in
177	177	one action or successive actions.
178	178	SECTION 2. This Act takes effect September 1, 2009.