84R20300 ATP-F
By: Parker H.B. No. 3094
Substitute the following for H.B. No. 3094:
By: Stephenson C.S.H.B. No. 3094
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of consumer credit transactions and the
regulatory authority of the Office of Consumer Credit Commissioner;
amending provisions subject to a criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 14.2015, Finance Code, is amended to
read as follows:
Sec. 14.2015. CONFIDENTIALITY OF CERTAIN INFORMATION.
(a) Except as provided by Subsection (b), information or material
obtained or compiled by the commissioner in relation to an
examination or investigation by the commissioner or the
commissioner's representative of a license holder, registrant,
applicant, or other person under a provision listed in Section
14.201 [Section 339.001, Subtitle B or C, Title 4, Subchapter G of
Chapter 393, or Chapter 394] is confidential and may not be
disclosed by the commissioner or an officer or employee of the
Office of Consumer Credit Commissioner, including:
(1) information obtained from the [a] license holder,
registrant, applicant, or other person examined or investigated
[under Section 339.001, Subtitle B or C, Title 4, Subchapter G of
Chapter 393, or Chapter 394];
(2) work performed by the commissioner or the
commissioner's representative on information obtained from the [a]
license holder, registrant, applicant, or other person for the
purposes of an examination or investigation [conducted under
Section 339.001, Subtitle B or C, Title 4, Chapter 393 with
respect to a credit access business, or Chapter 394];
(3) a report on an examination or investigation of the
[a] license holder, registrant, applicant, or other person
[conducted under Section 339.001, Subtitle B or C, Title 4, Chapter
393 with respect to a credit access business, or Chapter 394]; and
(4) any written communications between the license
holder, registrant, applicant, or other person, as applicable, and
the commissioner or the commissioner's representative relating to
or referencing the [an] examination or investigation [conducted
under Section 339.001, Subtitle B or C, Title 4, Chapter 393 with
respect to a credit access business, or Chapter 394].
(b) The commissioner or the commissioner's representative
may disclose the confidential information or material described by
Subsection (a):
(1) to a department, agency, or instrumentality of
this state or the United States if the commissioner considers
disclosure to be necessary or proper to the enforcement of the laws
of this state or the United States and in the best interest of the
public;
(2) if the information was provided to or provided by
the license holder, registrant, applicant, or other person, and the
person consents to the release of the information or has published
the information contained in the release; or
(3) if the commissioner determines that release of the
information is required for an administrative hearing.
SECTION 2. Section 14.251, Finance Code, is amended by
adding Subsection (c) to read as follows:
(c) An order of restitution under Subsection (b) is subject
to the notice, procedure, and enforcement provisions of Sections
14.253 through 14.260 applicable to an administrative penalty.
SECTION 3. Section 14.256, Finance Code, is amended to read
as follows:
Sec. 14.256. ACCEPTANCE OF PENALTY; DEFAULT. If a person
accepts the determination and recommended penalty of the
commissioner or fails to make a timely written request for a
hearing, the commissioner by order shall approve the determination
and impose the recommended penalty.
SECTION 4. Section 14.257(a), Finance Code, is amended to
read as follows:
(a) If a person makes a timely written request for
[requests] a hearing [or fails to give a timely response to the
notice], the commissioner shall set a hearing and give notice of the
hearing to the person by certified mail.
SECTION 5. Section 180.002(5), Finance Code, is amended to
read as follows:
(5) "Dwelling" has the meaning assigned by Section
103(w) [103(v)] of the Truth in Lending Act (15 U.S.C. Section
1602(w) [1602(v)]).
SECTION 6. Section 303.015(c), Finance Code, is amended to
read as follows:
(c) A variable rate agreement for credit extended primarily
for personal, family, or household use must include the disclosures
identified for variable rate contracts required by regulations
issued by the Federal Reserve Board and the Bureau of Consumer
Financial Protection under the Truth in Lending Act (15 U.S.C.
Section 1601 et seq.), as amended, except that if that Act does not
apply because of the amount of the transaction, the following
disclosure must be included in a size equal to at least 10-point
type that is boldface, capitalized, underlined, or otherwise set
out from surrounding material so as to be conspicuous:
"NOTICE TO CONSUMER: UNDER TEXAS LAW, IF YOU CONSENT TO THIS
AGREEMENT, YOU MAY BE SUBJECT TO A FUTURE RATE AS HIGH AS 24 PERCENT
PER YEAR."
SECTION 7. Section 303.402(a), Finance Code, is amended to
read as follows:
(a) A person who contracts for, charges, or receives under a
contract subject to Chapter 342, 345, 346, 347, 348, or 353,
including a contract for an open-end account, a rate or amount of
interest or time price differential that exceeds the maximum
applicable rate or amount authorized by the applicable chapter and
the maximum applicable rate or amount authorized by [or] this
chapter is subject to a penalty for that violation determined under
Chapter 349.
SECTION 8. Sections 308.002(c) and (e), Finance Code, are
amended to read as follows:
(c) In interpreting this section, an administrative agency
or a court shall be guided by the applicable advertising provisions
of:
(1) Part C of the Truth in Lending Act [15 U.S.C.
Chapter 41, Subchapter I] (15 U.S.C. Section 1661 [1601] et seq.);
(2) Regulation Z (12 C.F.R. Parts 226 and 1026) [12
C.F.R. Part 226] adopted by the Board of Governors of the Federal
Reserve System and the Bureau of Consumer Financial Protection; and
(3) the Official Staff Commentary and other
interpretations of that statute and regulation by the Board of
Governors of the Federal Reserve System, the Bureau of Consumer
Financial Protection, and the staff of those agencies [its staff].
(e) A creditor who complies with the Truth in Lending Act
(15 U.S.C. Section 1601 et seq.) and [Federal Reserve] Regulation Z
(12 C.F.R. Parts [Part] 226 and 1026) in advertising a credit
transaction is considered to have fully complied with this section.
SECTION 9. Section 341.301(a), Finance Code, is amended to
read as follows:
(a) In each advertisement that purports to offer credit
regulated by this subtitle, Subtitle C, or Chapter 394, the
advertiser shall disclose the legal or registered name of the
advertiser and:
(1) shall disclose the street address of the
advertiser's place of business unless the advertisement:
(A) is located on the premises of the
advertiser's place of business; or
(B) is broadcast by radio or television; or
(2) if the advertisement is broadcast by radio or
television, shall:
(A) disclose the telephone number of the
advertiser; and
(B) comply with the applicable disclosure
requirements of Regulation Z (12 C.F.R. Parts 226 and 1026) [12
C.F.R. Section 226.1 et seq. (Regulation Z)].
SECTION 10. Section 341.401(b), Finance Code, is amended to
read as follows:
(b) In interpreting this section, a court or administrative
agency shall be guided by the Equal Credit Opportunity Act (15
U.S.C. Section 1691 et seq.) and regulations under and
interpretations of that Act by the Federal Reserve Board and the
Bureau of Consumer Financial Protection to the extent that Act and
those regulations and interpretations can be made applicable to
conduct prohibited by this section.
SECTION 11. Section 341.402(b), Finance Code, is amended to
read as follows:
(b) The liability of a person under this section is instead
of and not in addition to that person's liability under the Equal
Credit Opportunity [Title VII of the Consumer Credit Protection]
Act (15 U.S.C. Section 1691 et seq.). If the same act or omission
violates Section 341.401 and applicable federal law, the person
aggrieved by that conduct may bring a legal action to recover
monetary damages either under this section or under that federal
law, but not both.
SECTION 12. Section 341.502(a-1), Finance Code, is amended
to read as follows:
(a-1) If the terms of the agreement for a loan under
Subsection (a) were negotiated in Spanish, a copy of a summary of
those terms and other pertinent information shall be provided to
the debtor in Spanish in a form identical to disclosures required
for a closed-end transaction under 12 C.F.R. Sections [Section]
226.18 and 1026.18.
SECTION 13. Section 342.156, Finance Code, is amended to
read as follows:
Sec. 342.156. LICENSE SUSPENSION OR REVOCATION. After
notice and an opportunity for a hearing the commissioner may
suspend or revoke a license if the commissioner finds that:
(1) the license holder failed to pay the annual
license fee, an examination fee, an investigation fee, or another
charge imposed by the commissioner under this chapter;
(2) the license holder, knowingly or without the
exercise of due care, violated this chapter or a rule adopted or
order issued under this chapter;
(3) a fact or condition exists that, if it had existed
or had been known to exist at the time of the original application
for the license, clearly would have justified the commissioner's
denial of the application; or
(4) the license holder has failed to ensure that an
individual acting as a residential mortgage loan originator, as
defined by Section 180.002, in the making, transacting, or
negotiating of a loan subject to this chapter is licensed under this
chapter in accordance with Section 342.0515.
SECTION 14. Section 342.201, Finance Code, is amended by
adding Subsection (e-1) to read as follows:
(e-1) The interest charge under Subsection (e) must be
contracted for, charged, or received using the scheduled
installment earnings method or the true daily earnings method under
one of the following methods:
(1) applying the applicable daily rate to each part of
the unpaid principal balance corresponding to the brackets
described by Subsection (e) for the actual or scheduled number of
days during a payment period; or
(2) applying a single equivalent daily rate to the
unpaid principal balance for the actual or scheduled number of days
during a payment period, where the single equivalent daily rate is
determined at the inception of the loan using the scheduled
installment earnings method, and would earn an amount of interest
authorized under Subsection (e) if the debt were paid to maturity
according to the schedule of payments.
SECTION 15. Section 343.201, Finance Code, is amended to
read as follows:
Sec. 343.201. DEFINITIONS. In this subchapter:
(1) "High-cost home loan" means a loan that:
(A) is made to one or more individuals for
personal, family, or household purposes;
(B) is secured in whole or part by:
(i) a manufactured home, as defined by
Section 347.002, used or to be used as the borrower's principal
residence; or
(ii) real property improved by a dwelling
designed for occupancy by four or fewer families and used or to be
used as the borrower's principal residence;
(C) has a principal amount equal to or less than
one-half of the maximum conventional loan amount for first
mortgages as established and adjusted by the Federal National
Mortgage Association;
(D) is not:
(i) a reverse mortgage; or
(ii) an open-end account, as defined by
Section 301.002; and
(E) is a credit transaction described by 12
C.F.R. Section 1026.32 [226.32], as amended, except that the term
includes a residential mortgage transaction, as defined by 12
C.F.R. Section 1026.2 [226.2], as amended, if the total loan amount
is $20,000 or more and:
(i) the annual percentage rate exceeds the
rate indicated in 12 C.F.R. Section 1026.32(a)(1)(i)
[226.32(a)(1)(i)], as amended; or
(ii) the total points and fees payable by
the consumer at or before loan closing will exceed the amount
indicated in 12 C.F.R. Section 1026.32(a)(1)(ii)
[226.32(a)(1)(ii)], as amended.
(2) "Points and fees" has the meaning assigned by 12
C.F.R. Section 1026.32(b) [226.32(b)], as amended.
SECTION 16. Section 345.106, Finance Code, is amended to
read as follows:
Sec. 345.106. PROCESSING FEE FOR RETURNED CHECK. A retail
charge agreement may provide that the holder of the agreement may:
(1) charge the retail buyer, on return of a dishonored
check given in payment under the agreement, a reasonable processing
fee that does not exceed the amount prescribed by Section 3.506,
Business & Commerce Code [is not more than $15]; and
(2) add the fee to the unpaid balance under the
agreement.
SECTION 17. Section 347.002(b), Finance Code, is amended to
read as follows:
(b) To the extent possible, a word or phrase used in this
chapter, other than a term defined by this section, has the meaning
assigned by the Truth in Lending [Part I, Consumer Credit
Protection] Act (15 U.S.C. Section 1601 et seq.) and its subsequent
amendments, as implemented by Regulation Z (12 C.F.R. Part 1026)
[12 C.F.R. 226.1 et seq].
SECTION 18. Section 347.004(a), Finance Code, is amended to
read as follows:
(a) A creditor shall comply with all applicable
requirements, including required disclosures, under the Truth in
Lending [Part I, Consumer Credit Protection] Act (15 U.S.C. Section
1601 et seq.) and its subsequent amendments, as implemented by
Regulation Z (12 C.F.R. Part 1026) [12 C.F.R. 226.1 et seq.
(Regulation Z)] adopted under that Act.
SECTION 19. Section 347.056, Finance Code, is amended to
read as follows:
Sec. 347.056. AUTHORITY OF CONSUMER CREDIT COMMISSIONER
RELATING TO A CREDIT DOCUMENT. Except as provided by Section
347.004(a), the [The] commissioner may not require the inclusion of
any specific language or a disclosure on a credit document that is
not expressly required by:
(1) this chapter; or
(2) a regulation of the Office of the Comptroller of
the Currency [Thrift Supervision].
SECTION 20. Section 347.155(b), Finance Code, is amended to
read as follows:
(b) On prepayment, after deduction of an acquisition charge
that does not exceed $50, the consumer is entitled to a refund
credit of the time price differential or interest. The amount of
the credit is computed on an actuarial basis in accordance with
regulations of the Office of the Comptroller of the Currency
[Thrift Supervision] adopted under the Depository Institutions
Deregulation and Monetary Control Act of 1980 (12 U.S.C. Section
1735f-7a [4a] et seq.) for the prepayment of a mortgage loan that is
secured by a first lien on a residential manufactured home.
SECTION 21. Section 347.356, Finance Code, is amended to
read as follows:
Sec. 347.356. REQUIREMENTS FOR ACTION TO REPOSSESS,
FORECLOSE, OR ACCELERATE PAYMENT OF ENTIRE DEBT. An action to
repossess a manufactured home, foreclose a lien on a manufactured
home, or accelerate payment of the entire unpaid balance of a credit
transaction must comply with the regulations of the Office of the
Comptroller of the Currency [Thrift Supervision] relating to the
disclosure required for repossession, foreclosure, or acceleration
except in extreme circumstances, including abandonment or
voluntary surrender of the manufactured home.
SECTION 22. Section 347.455(b), Finance Code, is amended to
read as follows:
(b) If the real property is included in the cash price of a
credit transaction, the creditor may:
(1) charge a fee that is ordinarily associated with a
real property transaction and is not prohibited by law, including a
fee that is associated with a real property transaction and
excluded from a finance charge under this chapter by the Consumer
Credit Protection Act (15 U.S.C. Section 1601 et seq.) and
Regulation Z (12 C.F.R. Part 1026) [12 C.F.R. Section 226.1 et seq.
(Regulation Z)] adopted under that Act; and
(2) elect to treat the manufactured home as if it were
residential real property for all purposes in connection with the
credit transaction by conspicuously disclosing that election to the
consumer.
SECTION 23. Section 348.005, Finance Code, as amended by
Chapters 355 (H.B. 2462), 1135 (H.B. 2741), and 1287 (H.B. 2202),
Acts of the 83rd Legislature, Regular Session, 2013, is reenacted
and amended to read as follows:
Sec. 348.005. ITEMIZED CHARGE. An amount in a retail
installment contract is an itemized charge if the amount is not
included in the cash price and is the amount of:
(1) the price of accessories;
(1-a) the price of services related to the sale;
(1-b) fees for registration, certificate of title, and
license and any additional registration fees charged by a deputy as
authorized by rules adopted under Section 520.0071 [520.008],
Transportation Code;
(2) any taxes;
(3) fees or charges prescribed by law and connected
with the sale or inspection of the motor vehicle; and
(4) charges authorized for insurance, service
contracts, warranties, automobile club memberships, or a debt
cancellation agreement by this chapter [Subchapter C].
SECTION 24. Section 348.009(a), Finance Code, is amended to
read as follows:
(a) The disclosure requirements of Regulation Z (12 C.F.R.
Parts 226 and 1026) [12 C.F.R. Part 226 (Regulation Z)] adopted
under the Truth in Lending Act (15 U.S.C. Section 1601 et seq.) and
specifically 12 C.F.R. Sections [Section] 226.18(f) and
1026.18(f), regarding variable rate disclosures, apply according
to their terms to retail installment transactions.
SECTION 25. Section 348.208(b), Finance Code, is amended to
read as follows:
(b) A retail installment contract may include as a separate
charge an amount for:
(1) motor vehicle property damage or bodily injury
liability insurance;
(2) mechanical breakdown insurance;
(3) participation in a [motor] vehicle [theft]
protection product authorized under Chapter 2306, Occupations Code
[plan];
(4) insurance to reimburse the retail buyer for the
amount computed by subtracting the proceeds of the buyer's basic
collision policy on the motor vehicle from the amount owed on the
vehicle if the vehicle has been rendered a total loss;
(5) a warranty or service contract relating to the
motor vehicle;
(6) an identity recovery service contract; or
(7) a debt cancellation agreement if the agreement is
included as a term of a retail installment contract under Section
348.124.
SECTION 26. Section 348.404(d), Finance Code, is amended to
read as follows:
(d) A retail seller may include money advanced under
Subsection (b) in the retail installment contract only if it is
included as an itemized charge and may disclose money advanced
under Subsection (b) in any manner permitted by Regulation Z (12
C.F.R. Parts 226 and 1026) [12 C.F.R. Part 226 (Regulation Z)]
adopted under the Truth in Lending Act (15 U.S.C. Section 1601 et
seq.). Section 349.003 does not apply to this subsection. This
subsection does not create a private right of action. The
commissioner has exclusive jurisdiction to enforce this
subsection.
SECTION 27. Section 348.508, Finance Code, is amended to
read as follows:
Sec. 348.508. LICENSE SUSPENSION OR REVOCATION. After
notice and an opportunity for a hearing the commissioner may
suspend or revoke a license if the commissioner finds that:
(1) the license holder failed to pay the annual
license fee, an examination fee, an investigation fee, or another
charge imposed by the commissioner;
(2) the license holder, knowingly or without the
exercise of due care, violated this chapter or a rule adopted or
order issued under this chapter; or
(3) a fact or condition exists that, if it had existed
or had been known to exist at the time of the original application
for the license, clearly would have justified the commissioner's
denial of the application.
SECTION 28. Section 351.0022, Finance Code, is amended to
read as follows:
Sec. 351.0022. WAIVER PROHIBITED. Except as specifically
permitted by this chapter or Chapter 32, Tax Code, a property owner
may not waive or limit a requirement imposed on a property tax
lender by this chapter or Chapter 32, Tax Code.
SECTION 29. Subchapter A, Chapter 351, Finance Code, is
amended by adding Section 351.0081 to read as follows:
Sec. 351.0081. LENDER'S RECORDS; DOCUMENT RETENTION
REQUIREMENTS. (a) A property tax lender shall maintain a record of
each property tax loan made under this chapter as necessary to
enable the commissioner to determine whether the lender is
complying with this chapter.
(b) A property tax lender shall keep the record until the
later of:
(1) the fourth anniversary of the date of the property
tax loan; or
(2) the second anniversary of the date on which the
final entry is made in the record.
(c) A record described by Subsection (a) must be prepared in
accordance with accepted accounting practices.
(d) The commissioner shall accept a lender's system of
records if the system discloses the information reasonably required
under Subsection (a).
(e) A property tax lender shall keep each obligation signed
by a property owner at an office in this state designated by the
lender unless the obligation is transferred under an agreement that
gives the commissioner access to the obligation.
SECTION 30. Section 351.156, Finance Code, is amended to
read as follows:
Sec. 351.156. LICENSE SUSPENSION OR REVOCATION. After
notice and an opportunity for a hearing the commissioner may
suspend or revoke a license if the commissioner finds that:
(1) the license holder failed to pay the annual
license fee, an examination fee, an investigation fee, or another
charge imposed by the commissioner under this chapter;
(2) the license holder, knowingly or without the
exercise of due care, violated this chapter or Section 32.06 or
32.065, Tax Code, or a rule adopted or an order issued under this
chapter or Section 32.06 or 32.065, Tax Code;
(3) a fact or condition exists that, if it had existed
or had been known to exist at the time of the original application
for the license, clearly would have justified the commissioner's
denial of the application; or
(4) the license holder has failed to ensure that an
individual acting as a residential mortgage loan originator, as
defined by Section 180.002, in the making, transacting, or
negotiating of a property tax loan for a principal dwelling is
licensed under this chapter in accordance with Section 351.0515.
SECTION 31. Section 352.006(b), Finance Code, is amended to
read as follows:
(b) If the commissioner proposes to revoke a registration,
the facilitator is entitled to notice and an opportunity for a
hearing before the commissioner or a hearings officer, who shall
propose a decision to the commissioner. The commissioner or
hearings officer shall prescribe the time and place of the hearing
if the facilitator makes a written request for a hearing not later
than the 20th day after the date the facilitator receives the notice
of hearing. The hearing is governed by Chapter 2001, Government
Code.
SECTION 32. Section 353.508, Finance Code, is amended to
read as follows:
Sec. 353.508. LICENSE SUSPENSION OR REVOCATION. After
notice and an opportunity for a hearing the commissioner may
suspend or revoke a license if the commissioner finds that:
(1) the license holder failed to pay the annual
license fee, an investigation fee, or another charge imposed by the
commissioner;
(2) the license holder, knowingly or without the
exercise of due care, violated this chapter or a rule adopted or
order issued under this chapter; or
(3) a fact or condition exists that, if it had existed
or had been known to exist at the time of the original application
for the license, clearly would have justified the commissioner's
denial of the application.
SECTION 33. Section 371.157, Finance Code, is amended to
read as follows:
Sec. 371.157. PAWN TICKET. A pawnbroker, at the time a pawn
transaction is entered, shall deliver to the pledgor a pawn ticket
or other memorandum that clearly shows:
(1) the name and address of the pawnshop;
(2) the pledgor's name, address, and physical
description and a driver's license number, military identification
number, identification certificate number, or other official
number that can identify the pledgor;
(3) the date of the transaction;
(4) an identification and description of the pledged
goods, including serial numbers if reasonably available;
(5) the amount of cash advanced or credit extended to
the pledgor, designated as "Amount Financed";
(6) the amount of the pawn service charge, designated
as "Finance Charge";
(7) the total amount, consisting of the amount
financed plus the finance charge, that must be paid to redeem the
pledged goods on the maturity date, designated as "Total of
Payments";
(8) the "Annual Percentage Rate," computed according
to Regulation Z (12 C.F.R. Part 1026) adopted [regulations issued]
by the Bureau of Consumer Financial Protection [Federal Reserve
Board] under the Truth in Lending Act (15 U.S.C. Section 1601 et
seq.), as amended;
(9) the maturity date of the pawn transaction; and
(10) a statement that:
(A) the pledgor is not obligated to redeem the
pledged goods; and
(B) the pledged goods may be forfeited to the
pawnbroker on the 31st day after the maturity date.
SECTION 34. Section 371.251(a), Finance Code, is amended to
read as follows:
(a) After notice and an opportunity for a hearing, the
commissioner may revoke or suspend a pawnshop license if the
commissioner finds that:
(1) the pawnbroker has not paid a fee or charge imposed
by the commissioner under this chapter;
(2) the pawnbroker, knowingly or without exercising
due care to prevent the violation, has violated this chapter or a
rule adopted or an order issued under this chapter;
(3) a fact or condition exists that, if it had existed
or had been known to exist at the time of the original license
application, clearly would have justified refusal to issue the
license;
(4) the pawnbroker has established an association with
an unlicensed person who, with the knowledge of the pawnbroker, has
violated this chapter;
(5) the pawnbroker has aided or conspired with a
person to circumvent this chapter;
(6) the pawnbroker or a legal or beneficial owner of
the pawnbroker is not of good moral character or has been convicted
of a crime that the commissioner finds directly relates to the
duties and responsibilities of the occupation of pawnbroker or
would otherwise make the person unfit for a pawnshop license under
Section 371.052;
(7) the financial responsibility, experience,
character, or general fitness of the pawnbroker or its owners and
managers do not command the confidence of the public or warrant the
belief that the business will be operated lawfully, fairly, and
within the purposes of this chapter; or
(8) the pawnbroker has not maintained the minimum net
assets required by Section 371.072.
SECTION 35. Section 371.255, Finance Code, is amended to
read as follows:
Sec. 371.255. REVOCATION OR SUSPENSION OF PAWNSHOP EMPLOYEE
LICENSE. After notice and an opportunity for a hearing, the
commissioner may revoke or suspend a pawnshop employee license if
the commissioner finds that:
(1) the license holder knowingly or recklessly
violated this chapter or a rule adopted or order issued under this
chapter;
(2) a fact or condition exists that, if it had existed
or had been known to exist at the time of the original license
application, clearly would have justified refusal to issue the
license; or
(3) the moral character, business repute, and general
fitness of the license holder do not warrant belief that the license
holder will operate the business lawfully and fairly within the
provisions of this chapter.
SECTION 36. Section 393.614(a), Finance Code, is amended to
read as follows:
(a) After notice and an opportunity for a hearing the
commissioner may suspend or revoke a license if the commissioner
finds that:
(1) the license holder failed to pay the annual
license fee, an examination fee, an investigation fee, or another
charge imposed by the commissioner under this subchapter;
(2) the license holder, knowingly or without the
exercise of due care, violated this chapter or a rule adopted or
order issued under this chapter; or
(3) a fact or condition exists that, if it had existed
or had been known to exist at the time of the original application
for the license, clearly would have justified the commissioner's
denial of the application.
SECTION 37. Section 394.204(k), Finance Code, is amended to
read as follows:
(k) In addition to the power to refuse an initial
application as specified in this section, the commissioner may
suspend or revoke a provider's registration after notice and an
opportunity for a hearing if the commissioner finds that any of the
following conditions are met:
(1) a fact or condition exists that if it had existed
when the provider applied for registration would have been grounds
for denying registration;
(2) a fact or condition exists that the commissioner
was not aware of when the provider applied for registration and
would have been grounds for denying registration;
(3) the provider violates this subchapter or rule or
order of the commissioner under this subchapter;
(4) the provider is insolvent;
(5) the provider refuses to permit the commissioner to
make an examination authorized by this subchapter;
(6) the provider fails to respond within a reasonable
time and in an appropriate manner to communications from the
commissioner;
(7) the provider has received money from or on behalf
of a consumer for disbursement to a creditor under a debt management
plan that provides for regular periodic payments to creditors in
full repayment of the principal amount of the debts and the provider
has failed to disburse money to the creditor on behalf of the
consumer within a reasonable time, normally 30 days;
(8) the commissioner determines that the provider's
trust account is not materially in balance with and reconciled to
the consumer's account; or
(9) the provider fails to warrant the belief that the
business will be operated lawfully and fairly and within the
provisions and purposes of this subchapter.
SECTION 38. Section 394.212(a), Finance Code, is amended to
read as follows:
(a) A provider may not:
(1) purchase a debt or obligation of a consumer;
(2) receive or charge a fee in the form of a promissory
note or other negotiable instrument other than a check or a draft;
(3) lend money or provide credit to the consumer;
(4) obtain a mortgage or other security interest in
property owned by a consumer;
(5) engage in business with an entity described by
Section 394.204(c)(7) [394.204(c)(3)] without prior consent of the
commissioner, except that unless denied, consent is considered
granted 30 days after the date the provider notifies the
commissioner of the intent to engage in business with the
for-profit business entity [an organization] described by Section
394.204(c)(7) [394.204(c)(3)];
(6) offer, pay, or give a gift, bonus, premium,
reward, or other compensation to a person for entering into a debt
management services agreement;
(7) represent that the provider is authorized or
competent to furnish legal advice or perform legal services unless
supervised by an attorney as required by State Bar of Texas rules;
(8) use an unconscionable means to obtain a contract
with a consumer;
(9) engage in an unfair, deceptive, or unconscionable
act or practice in connection with a service provided to a consumer;
or
(10) require or attempt to require payment of an
amount that the provider states, discloses, or advertises to be a
voluntary contribution from the consumer.
SECTION 39. Section 1956.0614(b), Occupations Code, is
amended to read as follows:
(b) If the commissioner proposes to revoke a registration,
the dealer is entitled to notice and an opportunity for a hearing
before the commissioner or a hearings officer, who shall propose a
decision to the commissioner. The commissioner or hearings
officer shall prescribe the time and place of the hearing if the
dealer makes a written request for a hearing not later than the 20th
day after the date the dealer receives the notice of the
hearing. The hearing is governed by Chapter 2001, Government Code.
SECTION 40. Sections 32.06(d-1) and (f-3), Tax Code, are
amended to read as follows:
(d-1) A right of rescission described by the Truth in
Lending Act (15 U.S.C. Section 1635) and Regulation Z (12 C.F.R.
Section 1026.23) [12 C.F.R. Section 226.23] applies to a transfer
under this section of a tax lien on residential property owned and
used by the property owner for personal, family, or household
purposes.
(f-3) Notwithstanding any contractual agreement with the
property owner, the transferee of a tax lien must provide the payoff
information required by this section to the greatest extent
permitted by the Gramm-Leach-Bliley Act (15 U.S.C. Section 6802)
and Regulation P (12 C.F.R. Section 1016) [15 U.S.C. Section 6802
and 12 C.F.R. Part 216]. The payoff statement must meet the
requirements of a payoff statement defined by Section 12.017,
Property Code. A transferee may charge a reasonable fee for a
payoff statement that is requested after an initial payoff
statement is provided. However, a transferee is not required to
release payoff information pursuant to a notice under Subsection
(f-1) unless the notice contains the information prescribed by the
Finance Commission of Texas.
SECTION 41. Sections 11.305(a), (b), and (c), Finance Code,
are repealed.
SECTION 42. This Act takes effect September 1, 2015.