Texas 2009 - 81st Regular

Texas Senate Bill SB242 Compare Versions

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

Old	New	Differences
1	1	81R1038 DWS-F
2	2	By: Shapleigh S.B. No. 242
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of a person who offers, services, or
8	8	brokers a deferred presentment transaction.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter M, Chapter 342, Finance Code, is
11	11	amended by adding Sections 342.607, 342.608, and 342.609 to read as
12	12	follows:
13	13	Sec. 342.607. DEFERRED PRESENTMENT TRANSACTION DATA
14	14	COLLECTION SYSTEM. (a) A person who offers, services, or brokers a
15	15	deferred presentment transaction, including a credit services
16	16	organization to which Chapter 393 applies and a person registered
17	17	or licensed to do business in this state, who offers deferred
18	18	presentment transactions on the Internet, shall submit data to a
19	19	database established by a database provider selected by the
20	20	commissioner.
21	21	(b) The commissioner shall contract with a person to
22	22	establish a database for the compilation of information from
23	23	persons who offer, service, or broker deferred presentment
24	24	transactions. In selecting a database provider, the commissioner
25	25	shall ensure that the database provided by the person:
26	26	(1) provides access to the database by persons
27	27	required to submit information, through an Internet connection and
28	28	alternative methods, including by telephone, that enables the
29	29	persons to submit information as required by this section;
30	30	(2) provides real-time access by the commissioner to
31	31	information contained in the database;
32	32	(3) allows a person submitting information to access
33	33	only information relating to:
34	34	(A) that person; and
35	35	(B) the eligibility of an individual to enter
36	36	into a deferred presentment transaction under this chapter or rules
37	37	adopted under this chapter; and
38	38	(4) contains safeguards to ensure that confidential
39	39	information contained in the database may not be accessed by an
40	40	unauthorized person.
41	41	(c) A person required to submit data under this subchapter
42	42	shall weekly submit to the database provider:
43	43	(1) the amount of cash advanced under each deferred
44	44	presentment transaction made, serviced, or brokered by the person
45	45	during the preceding week;
46	46	(2) the amount of transactions made, serviced, or
47	47	brokered by the person that were outstanding on the last day of the
48	48	preceding week;
49	49	(3) the total number of transactions renewed during
50	50	the preceding week;
51	51	(4) any alternative payment arrangements that the
52	52	person offers;
53	53	(5) the average monthly income of an individual to
54	54	whom a cash advance is made under a deferred presentment
55	55	transaction, if the person collects that information from
56	56	individuals; and
57	57	(6) the total amount of interest, fees, or charges
58	58	collected by the person during the preceding week for making,
59	59	servicing, or brokering a deferred presentment transaction.
60	60	(d) The commissioner shall analyze the data reported under
61	61	this subchapter and prepare a report to the legislature. The
62	62	commissioner shall submit the report not later than February 1 of
63	63	each year.
64	64	(e) Information submitted to the database is the property of
65	65	the office of the consumer credit commissioner. Information that
66	66	personally identifies an individual is not subject to disclosure
67	67	under Chapter 552, Government Code.
68	68	(f) The finance commission may adopt rules as necessary to
69	69	implement this section.
70	70	Sec. 342.608. CERTIFICATION REQUIRED. (a) A person may not
71	71	offer, service, or broker a deferred presentment transaction unless
72	72	the person is certified by the commissioner. The requirement of
73	73	certification under this section is in addition to any license
74	74	required under this chapter or other law.
75	75	(b) To be certified by the commissioner, a person must:
76	76	(1) submit an application to the commissioner on a
77	77	form prescribed by the commissioner;
78	78	(2) submit an investigation fee of $2,500 to the
79	79	commissioner, if the person has not previously been certified by
80	80	the commissioner;
81	81	(3) submit a certification fee of $1,000 for the
82	82	initial or renewal certification;
83	83	(4) have not less than $1 million in assets,
84	84	calculated according to generally accepted accounting principles;
85	85	and
86	86	(5) submit a bond as required by Section 342.609.
87	87	(c) A person must annually renew the person's certification
88	88	under this section.
89	89	(d) The commissioner shall use proceeds from the fees
90	90	imposed under this section for the regulation of persons who offer,
91	91	service, or broker deferred presentment transactions, including
92	92	the monitoring and analysis of data submitted to the database under
93	93	Section 342.607.
94	94	Sec. 342.609. BOND REQUIRED. (a) In addition to any other
95	95	bond required by this chapter or other law, a person who offers,
96	96	services, or brokers a deferred presentment transaction shall file
97	97	with the application for certification a bond that is:
98	98	(1) in the amount of $1 million; and
99	99	(2) issued by a surety company qualified to do
100	100	business as a surety in this state.
101	101	(b) The bond must be in favor of this state for the use of
102	102	this state and the use of another person who has a cause of action
103	103	under this chapter against the person.
104	104	(c) The bond must be conditioned on:
105	105	(1) the person's faithful performance under this
106	106	chapter and rules adopted under this chapter; and
107	107	(2) the payment of all amounts that become due to the
108	108	state or another person under this chapter during the calendar year
109	109	for which the bond is given.
110	110	(d) The aggregate liability of a surety to all persons
111	111	damaged by the license holder's violation of this chapter may not
112	112	exceed the amount of the bond.
113	113	SECTION 2. (a) The consumer credit commissioner shall
114	114	select a database provider under Section 342.607, Finance Code, as
115	115	added by this Act, not later than January 1, 2010, and shall set the
116	116	date on which a person who offers, services, or brokers a deferred
117	117	presentment transaction must begin submitting data as provided by
118	118	that section.
119	119	(b) A person who offers, services, or brokers a deferred
120	120	presentment transaction is required to be certified and file a bond
121	121	under Sections 342.608 and 342.609, Finance Code, as added by this
122	122	Act, not later than January 1, 2010. The consumer credit
123	123	commissioner shall prescribe an application for certification
124	124	under Section 342.608, Finance Code, as added by this Act, not later
125	125	than November 1, 2009.
126	126	SECTION 3. This Act takes effect September 1, 2009.