Texas 2009 - 81st Regular

Texas Senate Bill SB1518 Compare Versions

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

Old	New	Differences
1	1	81R5547 CLG-F
2	2	By: Shapleigh S.B. No. 1518
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of tax refund anticipation loans.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 351.001, Finance Code, as added by
10	10	Chapter 135 (H.B. 1344), Acts of the 80th Legislature, Regular
11	11	Session, 2007, is amended by amending Subdivisions (1), (2), and
12	12	(5) and adding Subdivision (4-a) to read as follows:
13	13	(1) "Borrower" means an individual who receives the
14	14	proceeds of a refund anticipation loan or check.
15	15	(2) "Facilitator" means a person who processes,
16	16	receives, or accepts for delivery an application for a refund
17	17	anticipation loan or refund anticipation check, delivers a check in
18	18	payment of refund anticipation loan proceeds, or in any other
19	19	manner acts to allow the making of a refund anticipation loan or the
20	20	issuing of a refund anticipation check.
21	21	(4-a) "Refund anticipation check" means a check,
22	22	stored value card, or other payment mechanism:
23	23	(A) that represents the proceeds of a borrower's
24	24	tax refund;
25	25	(B) that was issued by a depository institution
26	26	or other person who receives a direct deposit of the borrower's tax
27	27	refund or tax credits; and
28	28	(C) for which the borrower pays a fee or other
29	29	consideration.
30	30	(5) "Refund anticipation loan fee" means a fee,
31	31	charge, [imposed] or other consideration charged or imposed
32	32	directly or indirectly [required] by [the facilitator or] the
33	33	lender for the making of, or in connection with, a refund
34	34	anticipation loan. The term includes any charge, fee, or other
35	35	consideration for a deposit account, if the deposit account is used
36	36	for receipt of the consumer's tax refund to repay the amount owed on
37	37	the loan. [The term does not include a fee usually imposed or other
38	38	consideration usually required by the facilitator in the ordinary
39	39	course of business for services not related to the making of loans,
40	40	including a fee imposed for tax return preparation or for the
41	41	electronic filing of a tax return.]
42	42	SECTION 2. Chapter 351, Finance Code, as added by Chapter
43	43	135 (H.B. 1344), Acts of the 80th Legislature, Regular Session,
44	44	2007, is amended by adding Section 351.0015 to read as follows:
45	45	Sec. 351.0015. RULES. The Finance Commission of Texas may
46	46	adopt rules as necessary to accomplish the purposes of this chapter
47	47	and assist facilitators in interpreting this chapter.
48	48	SECTION 3. Section 351.002(a), Finance Code, as added by
49	49	Chapter 135 (H.B. 1344), Acts of the 80th Legislature, Regular
50	50	Session, 2007, is amended to read as follows:
51	51	(a) A person may not, individually or in conjunction or
52	52	cooperation with another person, act as a facilitator unless the
53	53	person is:
54	54	(1) engaged in the business of preparing tax returns,
55	55	or employed by a person engaged in the business of preparing tax
56	56	returns;
57	57	(2) primarily involved in [financial services or] tax
58	58	preparations;
59	59	(3) authorized by the Internal Revenue Service as an
60	60	e-file provider; and
61	61	(4) registered with the commissioner as a facilitator
62	62	under Section 351.003.
63	63	SECTION 4. Chapter 351, Finance Code, as added by Chapter
64	64	135 (H.B. 1344), Acts of the 80th Legislature, Regular Session,
65	65	2007, is amended by adding Section 351.0025 to read as follows:
66	66	Sec. 351.0025. RESTRICTION ON LOCATION. A refund
67	67	anticipation loan may be made only at:
68	68	(1) a business location that primarily provides tax
69	69	preparation services; or
70	70	(2) a bank, thrift, savings association, industrial
71	71	bank, or credit union operating under the laws of the United States
72	72	or this state.
73	73	SECTION 5. Section 351.003, Finance Code, as added by
74	74	Chapter 135 (H.B. 1344), Acts of the 80th Legislature, Regular
75	75	Session, 2007, is amended to read as follows:
76	76	Sec. 351.003. REGISTRATION OF FACILITATORS. (a) A
77	77	facilitator shall register as provided by this chapter.
78	78	(a-1) To register as a facilitator, a person must file a
79	79	written application with the commissioner accompanied by an
80	80	application fee in an amount determined by [provide to] the
81	81	commissioner[,on or before December 31 preceding each calendar year
82	82	in which the person seeks to act as a facilitator:
83	83	[(1) a list of each location in this state at which
84	84	e-file providers authorized by the Internal Revenue Service file
85	85	tax returns on behalf of borrowers for whom the facilitator acts to
86	86	allow the making of a refund anticipation loan; and
87	87	[(2) a processing fee for each location included on
88	88	the list furnished under Subdivision (1)].
89	89	(b) An application must:
90	90	(1) be made under oath on a form prescribed by the
91	91	commissioner;
92	92	(2) contain all information required by the
93	93	commissioner; and
94	94	(3) identify each office at which the applicant
95	95	intends to act as a facilitator of a refund anticipation loan or
96	96	check [The commissioner shall prescribe the processing fee in an
97	97	amount necessary to cover the costs of administering this section].
98	98	(c) [After the December 31 deadline, a facilitator may amend
99	99	the registration required under Subsection (a) to reflect any
100	100	change in the information provided by the registration.
101	101	[(d)] The commissioner shall make available to the public a
102	102	list of facilitators registered under this section.
103	103	[(e) The commissioner may prescribe the registration form.]
104	104	SECTION 6. Chapter 351, Finance Code, as added by Chapter
105	105	135 (H.B. 1344), Acts of the 80th Legislature, Regular Session,
106	106	2007, is amended by adding Sections 351.0031, 351.0032, 351.0033,
107	107	351.0034, 351.0035, and 351.0036 to read as follows:
108	108	Sec. 351.0031. BOND. (a) An applicant shall post a bond in
109	109	the amount of $50,000.
110	110	(b) The bond must be in favor of this state for the use of a
111	111	borrower who has a cause of action under this chapter against the
112	112	facilitator. The bond must remain in effect for five years after
113	113	the facilitator ceases operation in this state.
114	114	(c) The bond must be conditioned on:
115	115	(1) the facilitator's faithful performance under this
116	116	chapter and rules adopted under this chapter; and
117	117	(2) the payment of all amounts that become due to a
118	118	borrower under this chapter.
119	119	Sec. 351.0032. CERTIFICATE OF REGISTRATION. (a) The
120	120	commissioner shall register an applicant and shall issue a
121	121	certificate attesting to the registration if the commissioner finds
122	122	that:
123	123	(1) the applicant meets the qualification
124	124	requirements of Sections 351.002(a)(1), (2), and (3); and
125	125	(2) the responsibility and general fitness of the
126	126	applicant commands the confidence of the community and warrants
127	127	belief that the business of facilitating refund anticipation loans
128	128	or checks will be operated according to the purposes of this
129	129	chapter.
130	130	(b) If the commissioner does not make the findings required
131	131	by Subsection (a), the commissioner may not register the applicant
132	132	and shall notify the applicant, stating the reason for the denial.
133	133	Sec. 351.0033. EXPIRATION OF REGISTRATION; RENEWAL. (a)
134	134	Registration as a facilitator expires on the first December 31
135	135	following the date the certificate of registration was issued.
136	136	(b) A registrant may renew a registration before the
137	137	registration expires by filing with the commissioner an application
138	138	for renewal in the form prescribed by the commissioner. An
139	139	application to renew a registration must contain all information
140	140	required by the commissioner and be accompanied by a fee in an
141	141	amount determined by the commissioner.
142	142	(c) The commissioner shall renew a registration on
143	143	receiving an application for renewal that complies with Subsection
144	144	(b) unless the commissioner finds that the registrant has violated
145	145	this chapter or that the registrant no longer meets the
146	146	qualifications for registration under Section 351.0032(a). If the
147	147	commissioner denies an application for renewal, the commissioner
148	148	shall notify the registrant, stating the reason for the denial.
149	149	Sec. 351.0034. HEARING ON DENIAL OF REGISTRATION OR
150	150	RENEWAL. (a) An applicant or registrant is entitled to a hearing
151	151	on written request made to the commissioner not later than the fifth
152	152	day after the date the applicant or registrant receives notice of
153	153	the commissioner's denial of an application for registration or
154	154	renewal.
155	155	(b) The commissioner shall hold an informal hearing
156	156	promptly after the commissioner receives the request.
157	157	Sec. 351.0035. COMPUTATION OF INTEREST. (a) The refund
158	158	anticipation loan interest rate is the rate, expressed as a
159	159	percentage, computed according to the following formula:
160	160	RAL RATE = (F x 365) / ((L - F) x T)
161	161	where:
162	162	"RAL RATE" is the refund anticipation loan interest rate;
163	163	"F" is the total amount of refund anticipation loan fees;
164	164	"L" is the total amount of the refund anticipation loan; and
165	165	"T" is the number of days in the refund anticipation loan.
166	166	(b) If a deposit account is established or maintained wholly
167	167	or partly for the purpose of receiving a borrower's tax refund to
168	168	repay the amount owed on a refund anticipation loan, the loan
169	169	matures for purposes of determining the refund anticipation loan
170	170	interest rate on the estimated date the tax refund will be deposited
171	171	in the deposit account. If a deposit account is not established or
172	172	maintained for the repayment of the loan, the loan matures for
173	173	purposes of determining the interest rate on the estimated date the
174	174	tax refund will be received by the creditor.
175	175	Sec. 351.0036. MAXIMUM INTEREST RATE. (a) A refund
176	176	anticipation loan may not provide for interest that exceeds the
177	177	lesser of:
178	178	(1) 36 percent a year; or
179	179	(2) the applicable alternative rate ceiling under
180	180	Chapter 303.
181	181	(b) A refund anticipation loan that provides for an interest
182	182	rate in violation of this section is void.
183	183	SECTION 7. Chapter 351, Finance Code, as added by Chapter
184	184	135 (H.B. 1344), Acts of the 80th Legislature, Regular Session,
185	185	2007, is amended by adding Sections 351.0041, 351.0042, 351.0043,
186	186	351.0044, 351.0045, 351.0046, 351.0047, 351.00471, 351.00472,
187	187	351.00473, 351.00474, 351.00475, 351.0048, and 351.0049 to read as
188	188	follows:
189	189	Sec. 351.0041. FEE SCHEDULE POSTING. (a) A facilitator
190	190	shall display schedules showing the fees for a refund anticipation
191	191	loan or check currently charged by the facilitator at each place of
192	192	business in this state where the registrant facilitates refund
193	193	anticipation loans or checks.
194	194	(b) A schedule required by Subsection (a) must be:
195	195	(1) displayed in a prominent location in each place of
196	196	business in this state where the facilitator facilitates refund
197	197	anticipation loans; and
198	198	(2) written in not less than 28-point type on a
199	199	document measuring not less than 16 inches by 20 inches.
200	200	(c) A schedule of the fees charged for refund anticipation
201	201	loans displayed under Subsection (a) must include:
202	202	(1) the interest rates for refund anticipation loans
203	203	of $300, $500, $1,000, $1,500, $2,000, and $5,000;
204	204	(2) the following title centered on the page in
205	205	bold-faced capital letters at least one inch tall: "NOTICE
206	206	CONCERNING REFUND ANTICIPATION LOANS"; and
207	207	(3) the following statement: "When you take out a
208	208	refund anticipation loan, you are borrowing against your tax
209	209	refund. If your tax refund is less than expected you will still owe
210	210	the entire amount of the loan. If your refund is delayed, you may
211	211	have to pay additional costs. YOU CAN GET YOUR REFUND IN 8 TO 15
212	212	DAYS WITHOUT PAYING ANY EXTRA FEES OR TAKING OUT A LOAN. You can
213	213	have your tax return filed electronically and your refund directly
214	214	deposited into your own bank account without obtaining a loan or
215	215	paying fees for an extra product."
216	216	(d) A facilitator may facilitate a refund anticipation loan
217	217	or check only if:
218	218	(1) the facilitator displays the schedules as required
219	219	by this section; and
220	220	(2) the fee actually charged for the refund
221	221	anticipation loan or check is the same as the fee displayed on the
222	222	schedule.
223	223	Sec. 351.0042. APPLICATION DISCLOSURES. (a) At the time a
224	224	borrower applies for a refund anticipation loan or check, the
225	225	facilitator or lender shall disclose to the borrower on a form
226	226	separate from the application:
227	227	(1) the fee for the refund anticipation loan or check;
228	228	(2) the fee for preparing a tax return and any other
229	229	fee charged to the borrower;
230	230	(3) the time in which the proceeds of the refund
231	231	anticipation loan or check will be paid to the borrower if the loan
232	232	or check is approved;
233	233	(4) for refund anticipation loans:
234	234	(A) the following title centered on the page in
235	235	bold-faced capital letters and 18-point type: "NOTICE";
236	236	(B) the following statement: "This is a loan.
237	237	You are borrowing money against your tax refund. If your tax refund
238	238	is less than expected, you will still owe the entire amount of the
239	239	loan. If your refund is delayed, you may have to pay additional
240	240	costs. YOU CAN USUALLY GET YOUR REFUND IN 8 TO 15 DAYS WITHOUT
241	241	GETTING A LOAN OR PAYING EXTRA FEES. You can have your tax return
242	242	filed electronically and your refund directly deposited into your
243	243	own bank account without obtaining a loan or other paid product.";
244	244	and
245	245	(C) the refund anticipation loan interest rate
246	246	computed as set forth in Section 351.0035; and
247	247	(5) for refund anticipation checks:
248	248	(A) the following title centered on the page in
249	249	bold-faced capital letters and 18-point type: "NOTICE"; and
250	250	(B) the following statement: "You are paying
251	251	[amount of refund anticipation check fee] to get your refund
252	252	through [name of issuer of refund anticipation check]. YOU CAN
253	253	AVOID THIS FEE AND STILL RECEIVE YOUR REFUND IN ABOUT 8 TO 15 DAYS BY
254	254	HAVING THE INTERNAL REVENUE SERVICE DIRECTLY DEPOSIT YOUR REFUND
255	255	INTO YOUR OWN BANK ACCOUNT. You can also wait for the IRS to mail you
256	256	a check. If you do not have a bank account, you may wish to consider
257	257	getting one."
258	258	(b) A disclosure under this section must be written:
259	259	(1) in 14-point type unless otherwise noted; and
260	260	(2) in English and in the language used primarily for
261	261	oral communication between the facilitator and the borrower.
262	262	Sec. 351.0043. ORAL DISCLOSURES. (a) If a borrower applies
263	263	for a refund anticipation loan, the facilitator shall orally
264	264	disclose to the borrower in the language primarily used for oral
265	265	communication between the facilitator and borrower:
266	266	(1) that the product is a loan that only lasts one to
267	267	two weeks;
268	268	(2) if the borrower's tax refund is less than expected,
269	269	that the borrower is liable for the full amount of the loan and must
270	270	repay the difference;
271	271	(3) the amount of the refund anticipation loan fee;
272	272	and
273	273	(4) the refund anticipation loan interest rate.
274	274	(b) If a borrower applies for a refund anticipation check,
275	275	the facilitator shall orally disclose to the borrower in the
276	276	language primarily used for oral communication between the
277	277	facilitator and borrower:
278	278	(1) the amount of the refund anticipation check fee;
279	279	and
280	280	(2) that the borrower can receive a refund in the same
281	281	amount of time without a fee if the tax return is filed
282	282	electronically and the borrower chooses direct deposit to the
283	283	borrower's own bank account.
284	284	(c) If the facilitator at any time provides an estimate of
285	285	the amount that the borrower will receive after deducting tax
286	286	preparation and refund anticipation loan or check fees, the
287	287	facilitator shall describe the options that the borrower can choose
288	288	from as:
289	289	"You can receive (state the full refund amount) in 3 to 8
290	290	weeks."
291	291	"You can receive (state the full refund amount) in 8 to 15
292	292	days with electronic filing and direct deposit to your own bank
293	293	account. This option will not cost you a fee to receive your
294	294	refund."
295	295	"You can receive (state the refund amount minus the refund
296	296	anticipation check fee, tax preparation fee, and any other fee
297	297	charged) in 8 to 15 days, but you will not receive anything in 3 to 8
298	298	weeks. This option will cost you (state the amount of refund
299	299	anticipation-related fees), plus your tax preparation fees are
300	300	deducted from the refund."
301	301	"You can receive (state refund amount minus refund
302	302	anticipation loan fee, tax preparation fee, and any other fee
303	303	charged) in one to two days, but you will not receive anything in 8
304	304	to 15 days or 3 to 8 weeks. This option will cost you (state the
305	305	amount of refund anticipation loan-related fees), plus your tax
306	306	preparation fees are deducted from the refund."
307	307	(d) The disclosures described by Subsection (c) may be used
308	308	by the facilitator to satisfy the requirements of Subsection (a)(3)
309	309	or Subsection (b).
310	310	Sec. 351.0044. ADVERTISING DISCLOSURES. (a) In this
311	311	section, "advertise" means to produce, distribute, broadcast, or
312	312	otherwise display or have displayed written or visual materials or
313	313	oral statements describing a facilitator's products and services.
314	314	(b) A facilitator may not advertise a refund anticipation
315	315	loan without including the following statement:
316	316	"[Name of refund anticipation loan product] is a loan. You
317	317	can get your refund in about 8 to 15 days without a loan or extra
318	318	fees if you use electronic filing and direct deposit."
319	319	(c) A facilitator may not advertise a refund anticipation
320	320	check without including the following statement:
321	321	"The [name of refund anticipation check product] costs
322	322	[refund anticipation check fee]. You can get your refund in about 8
323	323	to 15 days without this fee if you use electronic filing and direct
324	324	deposit."
325	325	(d) For a print advertisement, the disclosure required by
326	326	Subsections (b) and (c) must be in type size that is one-half as
327	327	large as the largest type size in the advertisement. For a radio or
328	328	television advertisement, the disclosures required by Subsections
329	329	(b) and (c) must receive at least seven seconds of broadcast time.
330	330	Sec. 351.0045. MODIFICATION OF REFUND RECEIPT ESTIMATE.
331	331	The commissioner may by rule revise the disclosures required by
332	332	this chapter to the extent that the 8- to 15-day estimate for
333	333	receiving a refund from the Internal Revenue Service is no longer
334	334	appropriate.
335	335	Sec. 351.0046. PROHIBITED PRACTICES. (a) A facilitator or
336	336	an officer, agent, employee, or other representative of a
337	337	facilitator may not:
338	338	(1) charge or impose a fee or other consideration in
339	339	the making or facilitating of a refund anticipation loan or refund
340	340	anticipation check apart from the fee charged by the lender that
341	341	provides the loan or check;
342	342	(2) engage in unfair or deceptive acts or practices in
343	343	facilitating a refund anticipation loan or check, including making
344	344	an oral statement contradicting information required to be
345	345	disclosed under this chapter;
346	346	(3) fail to comply with this chapter;
347	347	(4) misrepresent a material fact in obtaining or
348	348	attempting to obtain a registration as a facilitator;
349	349	(5) engage in conduct that violates Subchapter E,
350	350	Chapter 17, Business & Commerce Code; or
351	351	(6) in facilitating a refund anticipation loan or
352	352	check, threaten to take an action prohibited by this chapter or any
353	353	other law or that the person does not intend to take.
354	354	(b) The prohibition of Subsection (a)(1) does not include
355	355	any charge or fee imposed by the facilitator on all of the
356	356	facilitator's customers, including tax preparation fees, if the
357	357	same fee amount is charged to the facilitator's customers who do not
358	358	receive refund anticipation loans, refund anticipation checks, or
359	359	any other tax-related financial product.
360	360	Sec. 351.0047. COPIES OF APPLICATION AND AGREEMENT. At the
361	361	time a refund anticipation loan is closed or a refund anticipation
362	362	check transaction is completed, a facilitator or an officer, agent,
363	363	employee, or other representative of a facilitator shall give the
364	364	borrower copies, in a form that can be kept by the borrower, of:
365	365	(1) the complete loan or check application and
366	366	agreement; and
367	367	(2) the disclosures that a lender is required to make
368	368	under the Truth in Lending Act (15 U.S.C. Section 1601 et seq.), if
369	369	the transaction is a refund anticipation loan.
370	370	Sec. 351.00471. PROHIBITED PROVISIONS. (a) A facilitator
371	371	or an officer, agent, employee, or other representative of a
372	372	facilitator may not include in a document provided in connection
373	373	with a refund anticipation loan or check:
374	374	(1) a hold harmless clause;
375	375	(2) a confession of judgment clause;
376	376	(3) a waiver of the right to a jury trial, if
377	377	applicable, in an action brought by or against a borrower;
378	378	(4) an assignment of or order for payment of wages or
379	379	other compensation for services;
380	380	(5) a provision in which the borrower agrees not to
381	381	assert a claim or defense arising out of the contract;
382	382	(6) a waiver of any provision of this chapter,
383	383	including the right to injunctive, declaratory, or other equitable
384	384	relief or relief on a class-wide basis; or
385	385	(7) a provision requiring that any provision of a
386	386	dispute resolution between the parties to a refund anticipation
387	387	loan or check agreement be kept confidential.
388	388	(b) A waiver of any provision of this chapter is void.
389	389	(c) Subsection (a)(7) does not affect the rights of the
390	390	parties to a refund anticipation loan or check agreement to agree
391	391	that certain specified information is a trade secret or otherwise
392	392	confidential or to agree after a dispute arises to keep the dispute
393	393	resolution confidential.
394	394	Sec. 351.00472. ADDITIONAL SECURITY INTEREST PROHIBITED. A
395	395	facilitator or an officer, agent, employee, or other representative
396	396	of a facilitator may not take or arrange for a lender to take a
397	397	security interest in a borrower's property other than the proceeds
398	398	of the borrower's tax refund to secure payment of a refund
399	399	anticipation loan.
400	400	Sec. 351.00473. CERTAIN ACTIONS WITH RESPECT TO OUTSTANDING
401	401	OR DELINQUENT REFUND ANTICIPATION LOANS PROHIBITED. A facilitator
402	402	or an officer, agent, employee, or other representative of a
403	403	facilitator may not:
404	404	(1) directly or indirectly, individually or in
405	405	cooperation with another person, engage in the collection of an
406	406	outstanding or delinquent refund anticipation loan for another
407	407	lender or assignee; or
408	408	(2) act as facilitator for a refund anticipation loan
409	409	or check that contains a provision permitting the lender to repay
410	410	from the proceeds of the borrower's tax refund, by offset or other
411	411	means, another outstanding or delinquent refund anticipation loan.
412	412	Sec. 351.00474. ASSOCIATION WITH CHECK CASHING ENTERPRISE
413	413	PROHIBITED. A facilitator or an officer, agent, employee, or other
414	414	representative of a facilitator may not:
415	415	(1) refer a borrower to or solicit a borrower on behalf
416	416	of a third party who cashes a check for a fee; or
417	417	(2) permit a third party to cash a check for a fee in a
418	418	place of business identified in the facilitator's application for
419	419	registration.
420	420	Sec. 351.00475. CERTAIN CHARGES PROHIBITED. A facilitator
421	421	may not directly or indirectly arrange for any third party to charge
422	422	any interest, a fee, or another charge related to a refund
423	423	anticipation loan or check, other than the refund anticipation loan
424	424	or refund anticipation check fee imposed by the lender, including
425	425	the charging of:
426	426	(1) fees for insurance;
427	427	(2) attorney's fees;
428	428	(3) collection costs; or
429	429	(4) fees for cashing a check.
430	430	Sec. 351.0048. VIOLATION OF RULES. A facilitator or an
431	431	officer, agent, employee, or other representative of a facilitator
432	432	may not violate a rule adopted by the finance commission under this
433	433	chapter.
434	434	Sec. 351.0049. ANNUAL REPORTS. (a) On or before July 1 of
435	435	each year, a facilitator shall file a report with the commissioner
436	436	according to procedures established by the commissioner.
437	437	(b) A report filed under this section must include the
438	438	following information for the period beginning April 15 of the
439	439	preceding year and ending April 14 of the year the report is filed:
440	440	(1) the total number and dollar amount of refund
441	441	anticipation loans facilitated by the facilitator;
442	442	(2) the total number and dollar amount of refund
443	443	anticipation checks facilitated by the facilitator;
444	444	(3) the average number of days for which refund
445	445	anticipation loans facilitated by the facilitator were outstanding
446	446	before being repaid;
447	447	(4) the name and address of any lender or other person
448	448	for whom the facilitator facilitates a refund anticipation loan or
449	449	check; and
450	450	(5) any other information required by the
451	451	commissioner.
452	452	(c) The commissioner shall establish procedures for filing
453	453	a report under this section.
454	454	(d) Annually the commissioner shall prepare and make
455	455	available to the public a consolidated report of reports filed
456	456	under this section.
457	457	SECTION 8. Chapter 351, Finance Code, as added by Chapter
458	458	135 (H.B. 1344), Acts of the 80th Legislature, Regular Session,
459	459	2007, is amended by adding Sections 351.0051 and 351.0052 to read as
460	460	follows:
461	461	Sec. 351.0051. HEARING. (a) If the commissioner believes
462	462	or has notice that an action of a facilitator may violate this
463	463	chapter or a rule adopted under this chapter, the commissioner
464	464	shall give the facilitator reasonable notice of the suspected
465	465	violation and an opportunity to be heard.
466	466	(b) The commissioner may make investigations, subpoena
467	467	witnesses, and require audits and reports in preparation for a
468	468	hearing under this section.
469	469	(c) A hearing under this section shall be open to the
470	470	public.
471	471	(d) After the hearing the commissioner shall make findings
472	472	of fact and conclusions of law.
473	473	Sec. 351.0052. CEASE AND DESIST ORDER. If the commissioner
474	474	finds under Section 351.0051(d) that an action of a facilitator
475	475	violates this chapter or a rule adopted under this chapter, the
476	476	commissioner shall order the facilitator to cease and desist from
477	477	the action.
478	478	SECTION 9. The heading to Section 351.006, Finance Code, as
479	479	added by Chapter 135 (H.B. 1344), Acts of the 80th Legislature,
480	480	Regular Session, 2007, is amended to read as follows:
481	481	Sec. 351.006. REVOCATION OR SUSPENSION OF REGISTRATION.
482	482	SECTION 10. Section 351.006, Finance Code, as added by
483	483	Chapter 135 (H.B. 1344), Acts of the 80th Legislature, Regular
484	484	Session, 2007, is amended by amending Subsection (a) and adding
485	485	Subsection (d) to read as follows:
486	486	(a) If the commissioner finds under Section 351.005 that a
487	487	registrant has engaged in a course of conduct that violates this
488	488	chapter or a rule adopted under this chapter or has continued to
489	489	engage in an action in violation of a cease and desist order of the
490	490	commissioner that has not been stayed on application of the
491	491	registrant, the [The] commissioner may revoke or suspend the
492	492	registration of a facilitator [if the commissioner concludes that
493	493	the facilitator has violated this chapter]. The commissioner
494	494	shall recite the basis of the decision in an order revoking or
495	495	suspending the registration.
496	496	(d) The revocation, suspension, or surrender of a
497	497	facilitator's registration does not relieve a registrant from civil
498	498	or criminal liability for an action committed before the
499	499	revocation, suspension, or surrender.
500	500	SECTION 11. Chapter 351, Finance Code, as added by Chapter
501	501	135 (H.B. 1344), Acts of the 80th Legislature, Regular Session,
502	502	2007, is amended by adding Sections 351.0071, 351.0072, and
503	503	351.0073 to read as follows:
504	504	Sec. 351.0071. COMPLAINT PROCEDURE. (a) The commissioner
505	505	shall establish a complaint procedure that enables an aggrieved
506	506	borrower or a member of the public to file a complaint against a
507	507	registrant or non-registrant who violates a provision of this
508	508	chapter. The commissioner shall maintain a toll-free number that a
509	509	borrower may use to obtain information about registrants and
510	510	complaint forms.
511	511	(b) Except as provided by this subsection, a complaint is a
512	512	public record under Chapter 552, Government Code. A complainant's
513	513	name, address, and other personal identifying information may not
514	514	be disclosed to the public.
515	515	(c) On the request of a party to a complaint, the
516	516	commissioner shall hold a hearing as provided by Section 351.0051.
517	517	After the hearing, the commissioner may issue a cease and desist
518	518	order under Section 351.0052 or suspend or revoke a registration as
519	519	provided by Section 351.006.
520	520	Sec. 351.0072. DECEPTIVE TRADE PRACTICES. A violation of
521	521	this chapter is a deceptive trade practice under Subchapter E,
522	522	Chapter 17, Business & Commerce Code.
523	523	Sec. 351.0073. CIVIL ACTION. (a) A facilitator who fails
524	524	to comply with this chapter is liable to the borrower for:
525	525	(1) actual and consequential damages;
526	526	(2) the greater of:
527	527	(A) $2,500; or
528	528	(B) three times the amount of the refund
529	529	anticipation loan fee or other unauthorized charge; and
530	530	(3) reasonable attorney's fees and costs.
531	531	(b) Any person may sue for injunctive or other appropriate
532	532	equitable relief to enforce this chapter.
533	533	(c) A borrower may bring a class action suit to enforce this
534	534	chapter. In a class action suit brought under this subsection, a
535	535	facilitator who violates this chapter is liable for:
536	536	(1) actual and consequential damages for each class
537	537	member;
538	538	(2) damages provided by Subsection (a)(2) for each
539	539	class member; and
540	540	(3) reasonable attorney's fees and costs.
541	541	(d) The remedies provided in this section are cumulative and
542	542	are not intended to be the exclusive remedies available to a
543	543	borrower. A borrower is not required to exhaust any administrative
544	544	remedies provided by this chapter or other applicable law.
545	545	SECTION 12. A facilitator of refund anticipation loans or
546	546	checks shall file the first report with the consumer credit
547	547	commissioner as required by Section 351.0049, Finance Code, as
548	548	added by this Act, not later than July 1, 2011.
549	549	SECTION 13. This Act takes effect September 1, 2009.