Texas 2015 - 84th Regular

Texas House Bill HB3094 Compare Versions

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Version 2 (New)

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1	1	84R20300 ATP-F
2	2	By: Parker H.B. No. 3094
3	3	Substitute the following for H.B. No. 3094:
4	4	By: Stephenson C.S.H.B. No. 3094
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the regulation of consumer credit transactions and the
10	10	regulatory authority of the Office of Consumer Credit Commissioner;
11	11	amending provisions subject to a criminal penalty.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 14.2015, Finance Code, is amended to
14	14	read as follows:
15	15	Sec. 14.2015. CONFIDENTIALITY OF CERTAIN INFORMATION.
16	16	(a) Except as provided by Subsection (b), information or material
17	17	obtained or compiled by the commissioner in relation to an
18	18	examination or investigation by the commissioner or the
19	19	commissioner's representative of a license holder, registrant,
20	20	applicant, or other person under a provision listed in Section
21	21	14.201 [Section 339.001, Subtitle B or C, Title 4, Subchapter G of
22	22	Chapter 393, or Chapter 394] is confidential and may not be
23	23	disclosed by the commissioner or an officer or employee of the
24	24	Office of Consumer Credit Commissioner, including:
25	25	(1) information obtained from the [a] license holder,
26	26	registrant, applicant, or other person examined or investigated
27	27	[under Section 339.001, Subtitle B or C, Title 4, Subchapter G of
28	28	Chapter 393, or Chapter 394];
29	29	(2) work performed by the commissioner or the
30	30	commissioner's representative on information obtained from the [a]
31	31	license holder, registrant, applicant, or other person for the
32	32	purposes of an examination or investigation [conducted under
33	33	Section 339.001, Subtitle B or C, Title 4, Chapter 393 with
34	34	respect to a credit access business, or Chapter 394];
35	35	(3) a report on an examination or investigation of the
36	36	[a] license holder, registrant, applicant, or other person
37	37	[conducted under Section 339.001, Subtitle B or C, Title 4, Chapter
38	38	393 with respect to a credit access business, or Chapter 394]; and
39	39	(4) any written communications between the license
40	40	holder, registrant, applicant, or other person, as applicable, and
41	41	the commissioner or the commissioner's representative relating to
42	42	or referencing the [an] examination or investigation [conducted
43	43	under Section 339.001, Subtitle B or C, Title 4, Chapter 393 with
44	44	respect to a credit access business, or Chapter 394].
45	45	(b) The commissioner or the commissioner's representative
46	46	may disclose the confidential information or material described by
47	47	Subsection (a):
48	48	(1) to a department, agency, or instrumentality of
49	49	this state or the United States if the commissioner considers
50	50	disclosure to be necessary or proper to the enforcement of the laws
51	51	of this state or the United States and in the best interest of the
52	52	public;
53	53	(2) if the information was provided to or provided by
54	54	the license holder, registrant, applicant, or other person, and the
55	55	person consents to the release of the information or has published
56	56	the information contained in the release; or
57	57	(3) if the commissioner determines that release of the
58	58	information is required for an administrative hearing.
59	59	SECTION 2. Section 14.251, Finance Code, is amended by
60	60	adding Subsection (c) to read as follows:
61	61	(c) An order of restitution under Subsection (b) is subject
62	62	to the notice, procedure, and enforcement provisions of Sections
63	63	14.253 through 14.260 applicable to an administrative penalty.
64	64	SECTION 3. Section 14.256, Finance Code, is amended to read
65	65	as follows:
66	66	Sec. 14.256. ACCEPTANCE OF PENALTY; DEFAULT. If a person
67	67	accepts the determination and recommended penalty of the
68	68	commissioner or fails to make a timely written request for a
69	69	hearing, the commissioner by order shall approve the determination
70	70	and impose the recommended penalty.
71	71	SECTION 4. Section 14.257(a), Finance Code, is amended to
72	72	read as follows:
73	73	(a) If a person makes a timely written request for
74	74	[requests] a hearing [or fails to give a timely response to the
75	75	notice], the commissioner shall set a hearing and give notice of the
76	76	hearing to the person by certified mail.
77	77	SECTION 5. Section 180.002(5), Finance Code, is amended to
78	78	read as follows:
79	79	(5) "Dwelling" has the meaning assigned by Section
80	80	103(w) [103(v)] of the Truth in Lending Act (15 U.S.C. Section
81	81	1602(w) [1602(v)]).
82	82	SECTION 6. Section 303.015(c), Finance Code, is amended to
83	83	read as follows:
84	84	(c) A variable rate agreement for credit extended primarily
85	85	for personal, family, or household use must include the disclosures
86	86	identified for variable rate contracts required by regulations
87	87	issued by the Federal Reserve Board and the Bureau of Consumer
88	88	Financial Protection under the Truth in Lending Act (15 U.S.C.
89	89	Section 1601 et seq.), as amended, except that if that Act does not
90	90	apply because of the amount of the transaction, the following
91	91	disclosure must be included in a size equal to at least 10-point
92	92	type that is boldface, capitalized, underlined, or otherwise set
93	93	out from surrounding material so as to be conspicuous:
94	94	"NOTICE TO CONSUMER: UNDER TEXAS LAW, IF YOU CONSENT TO THIS
95	95	AGREEMENT, YOU MAY BE SUBJECT TO A FUTURE RATE AS HIGH AS 24 PERCENT
96	96	PER YEAR."
97	97	SECTION 7. Section 303.402(a), Finance Code, is amended to
98	98	read as follows:
99	99	(a) A person who contracts for, charges, or receives under a
100	100	contract subject to Chapter 342, 345, 346, 347, 348, or 353,
101	101	including a contract for an open-end account, a rate or amount of
102	102	interest or time price differential that exceeds the maximum
103	103	applicable rate or amount authorized by the applicable chapter and
104	104	the maximum applicable rate or amount authorized by [or] this
105	105	chapter is subject to a penalty for that violation determined under
106	106	Chapter 349.
107	107	SECTION 8. Sections 308.002(c) and (e), Finance Code, are
108	108	amended to read as follows:
109	109	(c) In interpreting this section, an administrative agency
110	110	or a court shall be guided by the applicable advertising provisions
111	111	of:
112	112	(1) Part C of the Truth in Lending Act [15 U.S.C.
113	113	Chapter 41, Subchapter I] (15 U.S.C. Section 1661 [1601] et seq.);
114	114	(2) Regulation Z (12 C.F.R. Parts 226 and 1026) [12
115	115	C.F.R. Part 226] adopted by the Board of Governors of the Federal
116	116	Reserve System and the Bureau of Consumer Financial Protection; and
117	117	(3) the Official Staff Commentary and other
118	118	interpretations of that statute and regulation by the Board of
119	119	Governors of the Federal Reserve System, the Bureau of Consumer
120	120	Financial Protection, and the staff of those agencies [its staff].
121	121	(e) A creditor who complies with the Truth in Lending Act
122	122	(15 U.S.C. Section 1601 et seq.) and [Federal Reserve] Regulation Z
123	123	(12 C.F.R. Parts [Part] 226 and 1026) in advertising a credit
124	124	transaction is considered to have fully complied with this section.
125	125	SECTION 9. Section 341.301(a), Finance Code, is amended to
126	126	read as follows:
127	127	(a) In each advertisement that purports to offer credit
128	128	regulated by this subtitle, Subtitle C, or Chapter 394, the
129	129	advertiser shall disclose the legal or registered name of the
130	130	advertiser and:
131	131	(1) shall disclose the street address of the
132	132	advertiser's place of business unless the advertisement:
133	133	(A) is located on the premises of the
134	134	advertiser's place of business; or
135	135	(B) is broadcast by radio or television; or
136	136	(2) if the advertisement is broadcast by radio or
137	137	television, shall:
138	138	(A) disclose the telephone number of the
139	139	advertiser; and
140	140	(B) comply with the applicable disclosure
141	141	requirements of Regulation Z (12 C.F.R. Parts 226 and 1026) [12
142	142	C.F.R. Section 226.1 et seq. (Regulation Z)].
143	143	SECTION 10. Section 341.401(b), Finance Code, is amended to
144	144	read as follows:
145	145	(b) In interpreting this section, a court or administrative
146	146	agency shall be guided by the Equal Credit Opportunity Act (15
147	147	U.S.C. Section 1691 et seq.) and regulations under and
148	148	interpretations of that Act by the Federal Reserve Board and the
149	149	Bureau of Consumer Financial Protection to the extent that Act and
150	150	those regulations and interpretations can be made applicable to
151	151	conduct prohibited by this section.
152	152	SECTION 11. Section 341.402(b), Finance Code, is amended to
153	153	read as follows:
154	154	(b) The liability of a person under this section is instead
155	155	of and not in addition to that person's liability under the Equal
156	156	Credit Opportunity [Title VII of the Consumer Credit Protection]
157	157	Act (15 U.S.C. Section 1691 et seq.). If the same act or omission
158	158	violates Section 341.401 and applicable federal law, the person
159	159	aggrieved by that conduct may bring a legal action to recover
160	160	monetary damages either under this section or under that federal
161	161	law, but not both.
162	162	SECTION 12. Section 341.502(a-1), Finance Code, is amended
163	163	to read as follows:
164	164	(a-1) If the terms of the agreement for a loan under
165	165	Subsection (a) were negotiated in Spanish, a copy of a summary of
166	166	those terms and other pertinent information shall be provided to
167	167	the debtor in Spanish in a form identical to disclosures required
168	168	for a closed-end transaction under 12 C.F.R. Sections [Section]
169	169	226.18 and 1026.18.
170	170	SECTION 13. Section 342.156, Finance Code, is amended to
171	171	read as follows:
172	172	Sec. 342.156. LICENSE SUSPENSION OR REVOCATION. After
173	173	notice and an opportunity for a hearing the commissioner may
174	174	suspend or revoke a license if the commissioner finds that:
175	175	(1) the license holder failed to pay the annual
176	176	license fee, an examination fee, an investigation fee, or another
177	177	charge imposed by the commissioner under this chapter;
178	178	(2) the license holder, knowingly or without the
179	179	exercise of due care, violated this chapter or a rule adopted or
180	180	order issued under this chapter;
181	181	(3) a fact or condition exists that, if it had existed
182	182	or had been known to exist at the time of the original application
183	183	for the license, clearly would have justified the commissioner's
184	184	denial of the application; or
185	185	(4) the license holder has failed to ensure that an
186	186	individual acting as a residential mortgage loan originator, as
187	187	defined by Section 180.002, in the making, transacting, or
188	188	negotiating of a loan subject to this chapter is licensed under this
189	189	chapter in accordance with Section 342.0515.
190	190	SECTION 14. Section 342.201, Finance Code, is amended by
191	191	adding Subsection (e-1) to read as follows:
192	192	(e-1) The interest charge under Subsection (e) must be
193	193	contracted for, charged, or received using the scheduled
194	194	installment earnings method or the true daily earnings method under
195	195	one of the following methods:
196	196	(1) applying the applicable daily rate to each part of
197	197	the unpaid principal balance corresponding to the brackets
198	198	described by Subsection (e) for the actual or scheduled number of
199	199	days during a payment period; or
200	200	(2) applying a single equivalent daily rate to the
201	201	unpaid principal balance for the actual or scheduled number of days
202	202	during a payment period, where the single equivalent daily rate is
203	203	determined at the inception of the loan using the scheduled
204	204	installment earnings method, and would earn an amount of interest
205	205	authorized under Subsection (e) if the debt were paid to maturity
206	206	according to the schedule of payments.
207	207	SECTION 15. Section 343.201, Finance Code, is amended to
208	208	read as follows:
209	209	Sec. 343.201. DEFINITIONS. In this subchapter:
210	210	(1) "High-cost home loan" means a loan that:
211	211	(A) is made to one or more individuals for
212	212	personal, family, or household purposes;
213	213	(B) is secured in whole or part by:
214	214	(i) a manufactured home, as defined by
215	215	Section 347.002, used or to be used as the borrower's principal
216	216	residence; or
217	217	(ii) real property improved by a dwelling
218	218	designed for occupancy by four or fewer families and used or to be
219	219	used as the borrower's principal residence;
220	220	(C) has a principal amount equal to or less than
221	221	one-half of the maximum conventional loan amount for first
222	222	mortgages as established and adjusted by the Federal National
223	223	Mortgage Association;
224	224	(D) is not:
225	225	(i) a reverse mortgage; or
226	226	(ii) an open-end account, as defined by
227	227	Section 301.002; and
228	228	(E) is a credit transaction described by 12
229	229	C.F.R. Section 1026.32 [226.32], as amended, except that the term
230	230	includes a residential mortgage transaction, as defined by 12
231	231	C.F.R. Section 1026.2 [226.2], as amended, if the total loan amount
232	232	is $20,000 or more and:
233	233	(i) the annual percentage rate exceeds the
234	234	rate indicated in 12 C.F.R. Section 1026.32(a)(1)(i)
235	235	[226.32(a)(1)(i)], as amended; or
236	236	(ii) the total points and fees payable by
237	237	the consumer at or before loan closing will exceed the amount
238	238	indicated in 12 C.F.R. Section 1026.32(a)(1)(ii)
239	239	[226.32(a)(1)(ii)], as amended.
240	240	(2) "Points and fees" has the meaning assigned by 12
241	241	C.F.R. Section 1026.32(b) [226.32(b)], as amended.
242	242	SECTION 16. Section 345.106, Finance Code, is amended to
243	243	read as follows:
244	244	Sec. 345.106. PROCESSING FEE FOR RETURNED CHECK. A retail
245	245	charge agreement may provide that the holder of the agreement may:
246	246	(1) charge the retail buyer, on return of a dishonored
247	247	check given in payment under the agreement, a reasonable processing
248	248	fee that does not exceed the amount prescribed by Section 3.506,
249	249	Business & Commerce Code [is not more than $15]; and
250	250	(2) add the fee to the unpaid balance under the
251	251	agreement.
252	252	SECTION 17. Section 347.002(b), Finance Code, is amended to
253	253	read as follows:
254	254	(b) To the extent possible, a word or phrase used in this
255	255	chapter, other than a term defined by this section, has the meaning
256	256	assigned by the Truth in Lending [Part I, Consumer Credit
257	257	Protection] Act (15 U.S.C. Section 1601 et seq.) and its subsequent
258	258	amendments, as implemented by Regulation Z (12 C.F.R. Part 1026)
259	259	[12 C.F.R. 226.1 et seq].
260	260	SECTION 18. Section 347.004(a), Finance Code, is amended to
261	261	read as follows:
262	262	(a) A creditor shall comply with all applicable
263	263	requirements, including required disclosures, under the Truth in
264	264	Lending [Part I, Consumer Credit Protection] Act (15 U.S.C. Section
265	265	1601 et seq.) and its subsequent amendments, as implemented by
266	266	Regulation Z (12 C.F.R. Part 1026) [12 C.F.R. 226.1 et seq.
267	267	(Regulation Z)] adopted under that Act.
268	268	SECTION 19. Section 347.056, Finance Code, is amended to
269	269	read as follows:
270	270	Sec. 347.056. AUTHORITY OF CONSUMER CREDIT COMMISSIONER
271	271	RELATING TO A CREDIT DOCUMENT. Except as provided by Section
272	272	347.004(a), the [The] commissioner may not require the inclusion of
273	273	any specific language or a disclosure on a credit document that is
274	274	not expressly required by:
275	275	(1) this chapter; or
276	276	(2) a regulation of the Office of the Comptroller of
277	277	the Currency [Thrift Supervision].
278	278	SECTION 20. Section 347.155(b), Finance Code, is amended to
279	279	read as follows:
280	280	(b) On prepayment, after deduction of an acquisition charge
281	281	that does not exceed $50, the consumer is entitled to a refund
282	282	credit of the time price differential or interest. The amount of
283	283	the credit is computed on an actuarial basis in accordance with
284	284	regulations of the Office of the Comptroller of the Currency
285	285	[Thrift Supervision] adopted under the Depository Institutions
286	286	Deregulation and Monetary Control Act of 1980 (12 U.S.C. Section
287	287	1735f-7a [4a] et seq.) for the prepayment of a mortgage loan that is
288	288	secured by a first lien on a residential manufactured home.
289	289	SECTION 21. Section 347.356, Finance Code, is amended to
290	290	read as follows:
291	291	Sec. 347.356. REQUIREMENTS FOR ACTION TO REPOSSESS,
292	292	FORECLOSE, OR ACCELERATE PAYMENT OF ENTIRE DEBT. An action to
293	293	repossess a manufactured home, foreclose a lien on a manufactured
294	294	home, or accelerate payment of the entire unpaid balance of a credit
295	295	transaction must comply with the regulations of the Office of the
296	296	Comptroller of the Currency [Thrift Supervision] relating to the
297	297	disclosure required for repossession, foreclosure, or acceleration
298	298	except in extreme circumstances, including abandonment or
299	299	voluntary surrender of the manufactured home.
300	300	SECTION 22. Section 347.455(b), Finance Code, is amended to
301	301	read as follows:
302	302	(b) If the real property is included in the cash price of a
303	303	credit transaction, the creditor may:
304	304	(1) charge a fee that is ordinarily associated with a
305	305	real property transaction and is not prohibited by law, including a
306	306	fee that is associated with a real property transaction and
307	307	excluded from a finance charge under this chapter by the Consumer
308	308	Credit Protection Act (15 U.S.C. Section 1601 et seq.) and
309	309	Regulation Z (12 C.F.R. Part 1026) [12 C.F.R. Section 226.1 et seq.
310	310	(Regulation Z)] adopted under that Act; and
311	311	(2) elect to treat the manufactured home as if it were
312	312	residential real property for all purposes in connection with the
313	313	credit transaction by conspicuously disclosing that election to the
314	314	consumer.
315	315	SECTION 23. Section 348.005, Finance Code, as amended by
316	316	Chapters 355 (H.B. 2462), 1135 (H.B. 2741), and 1287 (H.B. 2202),
317	317	Acts of the 83rd Legislature, Regular Session, 2013, is reenacted
318	318	and amended to read as follows:
319	319	Sec. 348.005. ITEMIZED CHARGE. An amount in a retail
320	320	installment contract is an itemized charge if the amount is not
321	321	included in the cash price and is the amount of:
322	322	(1) the price of accessories;
323	323	(1-a) the price of services related to the sale;
324	324	(1-b) fees for registration, certificate of title, and
325	325	license and any additional registration fees charged by a deputy as
326	326	authorized by rules adopted under Section 520.0071 [520.008],
327	327	Transportation Code;
328	328	(2) any taxes;
329	329	(3) fees or charges prescribed by law and connected
330	330	with the sale or inspection of the motor vehicle; and
331	331	(4) charges authorized for insurance, service
332	332	contracts, warranties, automobile club memberships, or a debt
333	333	cancellation agreement by this chapter [Subchapter C].
334	334	SECTION 24. Section 348.009(a), Finance Code, is amended to
335	335	read as follows:
336	336	(a) The disclosure requirements of Regulation Z (12 C.F.R.
337	337	Parts 226 and 1026) [12 C.F.R. Part 226 (Regulation Z)] adopted
338	338	under the Truth in Lending Act (15 U.S.C. Section 1601 et seq.) and
339	339	specifically 12 C.F.R. Sections [Section] 226.18(f) and
340	340	1026.18(f), regarding variable rate disclosures, apply according
341	341	to their terms to retail installment transactions.
342	342	SECTION 25. Section 348.208(b), Finance Code, is amended to
343	343	read as follows:
344	344	(b) A retail installment contract may include as a separate
345	345	charge an amount for:
346	346	(1) motor vehicle property damage or bodily injury
347	347	liability insurance;
348	348	(2) mechanical breakdown insurance;
349	349	(3) participation in a [motor] vehicle [theft]
350	350	protection product authorized under Chapter 2306, Occupations Code
351	351	[plan];
352	352	(4) insurance to reimburse the retail buyer for the
353	353	amount computed by subtracting the proceeds of the buyer's basic
354	354	collision policy on the motor vehicle from the amount owed on the
355	355	vehicle if the vehicle has been rendered a total loss;
356	356	(5) a warranty or service contract relating to the
357	357	motor vehicle;
358	358	(6) an identity recovery service contract; or
359	359	(7) a debt cancellation agreement if the agreement is
360	360	included as a term of a retail installment contract under Section
361	361	348.124.
362	362	SECTION 26. Section 348.404(d), Finance Code, is amended to
363	363	read as follows:
364	364	(d) A retail seller may include money advanced under
365	365	Subsection (b) in the retail installment contract only if it is
366	366	included as an itemized charge and may disclose money advanced
367	367	under Subsection (b) in any manner permitted by Regulation Z (12
368	368	C.F.R. Parts 226 and 1026) [12 C.F.R. Part 226 (Regulation Z)]
369	369	adopted under the Truth in Lending Act (15 U.S.C. Section 1601 et
370	370	seq.). Section 349.003 does not apply to this subsection. This
371	371	subsection does not create a private right of action. The
372	372	commissioner has exclusive jurisdiction to enforce this
373	373	subsection.
374	374	SECTION 27. Section 348.508, Finance Code, is amended to
375	375	read as follows:
376	376	Sec. 348.508. LICENSE SUSPENSION OR REVOCATION. After
377	377	notice and an opportunity for a hearing the commissioner may
378	378	suspend or revoke a license if the commissioner finds that:
379	379	(1) the license holder failed to pay the annual
380	380	license fee, an examination fee, an investigation fee, or another
381	381	charge imposed by the commissioner;
382	382	(2) the license holder, knowingly or without the
383	383	exercise of due care, violated this chapter or a rule adopted or
384	384	order issued under this chapter; or
385	385	(3) a fact or condition exists that, if it had existed
386	386	or had been known to exist at the time of the original application
387	387	for the license, clearly would have justified the commissioner's
388	388	denial of the application.
389	389	SECTION 28. Section 351.0022, Finance Code, is amended to
390	390	read as follows:
391	391	Sec. 351.0022. WAIVER PROHIBITED. Except as specifically
392	392	permitted by this chapter or Chapter 32, Tax Code, a property owner
393	393	may not waive or limit a requirement imposed on a property tax
394	394	lender by this chapter or Chapter 32, Tax Code.
395	395	SECTION 29. Subchapter A, Chapter 351, Finance Code, is
396	396	amended by adding Section 351.0081 to read as follows:
397	397	Sec. 351.0081. LENDER'S RECORDS; DOCUMENT RETENTION
398	398	REQUIREMENTS. (a) A property tax lender shall maintain a record of
399	399	each property tax loan made under this chapter as necessary to
400	400	enable the commissioner to determine whether the lender is
401	401	complying with this chapter.
402	402	(b) A property tax lender shall keep the record until the
403	403	later of:
404	404	(1) the fourth anniversary of the date of the property
405	405	tax loan; or
406	406	(2) the second anniversary of the date on which the
407	407	final entry is made in the record.
408	408	(c) A record described by Subsection (a) must be prepared in
409	409	accordance with accepted accounting practices.
410	410	(d) The commissioner shall accept a lender's system of
411	411	records if the system discloses the information reasonably required
412	412	under Subsection (a).
413	413	(e) A property tax lender shall keep each obligation signed
414	414	by a property owner at an office in this state designated by the
415	415	lender unless the obligation is transferred under an agreement that
416	416	gives the commissioner access to the obligation.
417	417	SECTION 30. Section 351.156, Finance Code, is amended to
418	418	read as follows:
419	419	Sec. 351.156. LICENSE SUSPENSION OR REVOCATION. After
420	420	notice and an opportunity for a hearing the commissioner may
421	421	suspend or revoke a license if the commissioner finds that:
422	422	(1) the license holder failed to pay the annual
423	423	license fee, an examination fee, an investigation fee, or another
424	424	charge imposed by the commissioner under this chapter;
425	425	(2) the license holder, knowingly or without the
426	426	exercise of due care, violated this chapter or Section 32.06 or
427	427	32.065, Tax Code, or a rule adopted or an order issued under this
428	428	chapter or Section 32.06 or 32.065, Tax Code;
429	429	(3) a fact or condition exists that, if it had existed
430	430	or had been known to exist at the time of the original application
431	431	for the license, clearly would have justified the commissioner's
432	432	denial of the application; or
433	433	(4) the license holder has failed to ensure that an
434	434	individual acting as a residential mortgage loan originator, as
435	435	defined by Section 180.002, in the making, transacting, or
436	436	negotiating of a property tax loan for a principal dwelling is
437	437	licensed under this chapter in accordance with Section 351.0515.
438	438	SECTION 31. Section 352.006(b), Finance Code, is amended to
439	439	read as follows:
440	440	(b) If the commissioner proposes to revoke a registration,
441	441	the facilitator is entitled to notice and an opportunity for a
442	442	hearing before the commissioner or a hearings officer, who shall
443	443	propose a decision to the commissioner. The commissioner or
444	444	hearings officer shall prescribe the time and place of the hearing
445	445	if the facilitator makes a written request for a hearing not later
446	446	than the 20th day after the date the facilitator receives the notice
447	447	of hearing. The hearing is governed by Chapter 2001, Government
448	448	Code.
449	449	SECTION 32. Section 353.508, Finance Code, is amended to
450	450	read as follows:
451	451	Sec. 353.508. LICENSE SUSPENSION OR REVOCATION. After
452	452	notice and an opportunity for a hearing the commissioner may
453	453	suspend or revoke a license if the commissioner finds that:
454	454	(1) the license holder failed to pay the annual
455	455	license fee, an investigation fee, or another charge imposed by the
456	456	commissioner;
457	457	(2) the license holder, knowingly or without the
458	458	exercise of due care, violated this chapter or a rule adopted or
459	459	order issued under this chapter; or
460	460	(3) a fact or condition exists that, if it had existed
461	461	or had been known to exist at the time of the original application
462	462	for the license, clearly would have justified the commissioner's
463	463	denial of the application.
464	464	SECTION 33. Section 371.157, Finance Code, is amended to
465	465	read as follows:
466	466	Sec. 371.157. PAWN TICKET. A pawnbroker, at the time a pawn
467	467	transaction is entered, shall deliver to the pledgor a pawn ticket
468	468	or other memorandum that clearly shows:
469	469	(1) the name and address of the pawnshop;
470	470	(2) the pledgor's name, address, and physical
471	471	description and a driver's license number, military identification
472	472	number, identification certificate number, or other official
473	473	number that can identify the pledgor;
474	474	(3) the date of the transaction;
475	475	(4) an identification and description of the pledged
476	476	goods, including serial numbers if reasonably available;
477	477	(5) the amount of cash advanced or credit extended to
478	478	the pledgor, designated as "Amount Financed";
479	479	(6) the amount of the pawn service charge, designated
480	480	as "Finance Charge";
481	481	(7) the total amount, consisting of the amount
482	482	financed plus the finance charge, that must be paid to redeem the
483	483	pledged goods on the maturity date, designated as "Total of
484	484	Payments";
485	485	(8) the "Annual Percentage Rate," computed according
486	486	to Regulation Z (12 C.F.R. Part 1026) adopted [regulations issued]
487	487	by the Bureau of Consumer Financial Protection [Federal Reserve
488	488	Board] under the Truth in Lending Act (15 U.S.C. Section 1601 et
489	489	seq.), as amended;
490	490	(9) the maturity date of the pawn transaction; and
491	491	(10) a statement that:
492	492	(A) the pledgor is not obligated to redeem the
493	493	pledged goods; and
494	494	(B) the pledged goods may be forfeited to the
495	495	pawnbroker on the 31st day after the maturity date.
496	496	SECTION 34. Section 371.251(a), Finance Code, is amended to
497	497	read as follows:
498	498	(a) After notice and an opportunity for a hearing, the
499	499	commissioner may revoke or suspend a pawnshop license if the
500	500	commissioner finds that:
501	501	(1) the pawnbroker has not paid a fee or charge imposed
502	502	by the commissioner under this chapter;
503	503	(2) the pawnbroker, knowingly or without exercising
504	504	due care to prevent the violation, has violated this chapter or a
505	505	rule adopted or an order issued under this chapter;
506	506	(3) a fact or condition exists that, if it had existed
507	507	or had been known to exist at the time of the original license
508	508	application, clearly would have justified refusal to issue the
509	509	license;
510	510	(4) the pawnbroker has established an association with
511	511	an unlicensed person who, with the knowledge of the pawnbroker, has
512	512	violated this chapter;
513	513	(5) the pawnbroker has aided or conspired with a
514	514	person to circumvent this chapter;
515	515	(6) the pawnbroker or a legal or beneficial owner of
516	516	the pawnbroker is not of good moral character or has been convicted
517	517	of a crime that the commissioner finds directly relates to the
518	518	duties and responsibilities of the occupation of pawnbroker or
519	519	would otherwise make the person unfit for a pawnshop license under
520	520	Section 371.052;
521	521	(7) the financial responsibility, experience,
522	522	character, or general fitness of the pawnbroker or its owners and
523	523	managers do not command the confidence of the public or warrant the
524	524	belief that the business will be operated lawfully, fairly, and
525	525	within the purposes of this chapter; or
526	526	(8) the pawnbroker has not maintained the minimum net
527	527	assets required by Section 371.072.
528	528	SECTION 35. Section 371.255, Finance Code, is amended to
529	529	read as follows:
530	530	Sec. 371.255. REVOCATION OR SUSPENSION OF PAWNSHOP EMPLOYEE
531	531	LICENSE. After notice and an opportunity for a hearing, the
532	532	commissioner may revoke or suspend a pawnshop employee license if
533	533	the commissioner finds that:
534	534	(1) the license holder knowingly or recklessly
535	535	violated this chapter or a rule adopted or order issued under this
536	536	chapter;
537	537	(2) a fact or condition exists that, if it had existed
538	538	or had been known to exist at the time of the original license
539	539	application, clearly would have justified refusal to issue the
540	540	license; or
541	541	(3) the moral character, business repute, and general
542	542	fitness of the license holder do not warrant belief that the license
543	543	holder will operate the business lawfully and fairly within the
544	544	provisions of this chapter.
545	545	SECTION 36. Section 393.614(a), Finance Code, is amended to
546	546	read as follows:
547	547	(a) After notice and an opportunity for a hearing the
548	548	commissioner may suspend or revoke a license if the commissioner
549	549	finds that:
550	550	(1) the license holder failed to pay the annual
551	551	license fee, an examination fee, an investigation fee, or another
552	552	charge imposed by the commissioner under this subchapter;
553	553	(2) the license holder, knowingly or without the
554	554	exercise of due care, violated this chapter or a rule adopted or
555	555	order issued under this chapter; or
556	556	(3) a fact or condition exists that, if it had existed
557	557	or had been known to exist at the time of the original application
558	558	for the license, clearly would have justified the commissioner's
559	559	denial of the application.
560	560	SECTION 37. Section 394.204(k), Finance Code, is amended to
561	561	read as follows:
562	562	(k) In addition to the power to refuse an initial
563	563	application as specified in this section, the commissioner may
564	564	suspend or revoke a provider's registration after notice and an
565	565	opportunity for a hearing if the commissioner finds that any of the
566	566	following conditions are met:
567	567	(1) a fact or condition exists that if it had existed
568	568	when the provider applied for registration would have been grounds
569	569	for denying registration;
570	570	(2) a fact or condition exists that the commissioner
571	571	was not aware of when the provider applied for registration and
572	572	would have been grounds for denying registration;
573	573	(3) the provider violates this subchapter or rule or
574	574	order of the commissioner under this subchapter;
575	575	(4) the provider is insolvent;
576	576	(5) the provider refuses to permit the commissioner to
577	577	make an examination authorized by this subchapter;
578	578	(6) the provider fails to respond within a reasonable
579	579	time and in an appropriate manner to communications from the
580	580	commissioner;
581	581	(7) the provider has received money from or on behalf
582	582	of a consumer for disbursement to a creditor under a debt management
583	583	plan that provides for regular periodic payments to creditors in
584	584	full repayment of the principal amount of the debts and the provider
585	585	has failed to disburse money to the creditor on behalf of the
586	586	consumer within a reasonable time, normally 30 days;
587	587	(8) the commissioner determines that the provider's
588	588	trust account is not materially in balance with and reconciled to
589	589	the consumer's account; or
590	590	(9) the provider fails to warrant the belief that the
591	591	business will be operated lawfully and fairly and within the
592	592	provisions and purposes of this subchapter.
593	593	SECTION 38. Section 394.212(a), Finance Code, is amended to
594	594	read as follows:
595	595	(a) A provider may not:
596	596	(1) purchase a debt or obligation of a consumer;
597	597	(2) receive or charge a fee in the form of a promissory
598	598	note or other negotiable instrument other than a check or a draft;
599	599	(3) lend money or provide credit to the consumer;
600	600	(4) obtain a mortgage or other security interest in
601	601	property owned by a consumer;
602	602	(5) engage in business with an entity described by
603	603	Section 394.204(c)(7) [394.204(c)(3)] without prior consent of the
604	604	commissioner, except that unless denied, consent is considered
605	605	granted 30 days after the date the provider notifies the
606	606	commissioner of the intent to engage in business with the
607	607	for-profit business entity [an organization] described by Section
608	608	394.204(c)(7) [394.204(c)(3)];
609	609	(6) offer, pay, or give a gift, bonus, premium,
610	610	reward, or other compensation to a person for entering into a debt
611	611	management services agreement;
612	612	(7) represent that the provider is authorized or
613	613	competent to furnish legal advice or perform legal services unless
614	614	supervised by an attorney as required by State Bar of Texas rules;
615	615	(8) use an unconscionable means to obtain a contract
616	616	with a consumer;
617	617	(9) engage in an unfair, deceptive, or unconscionable
618	618	act or practice in connection with a service provided to a consumer;
619	619	or
620	620	(10) require or attempt to require payment of an
621	621	amount that the provider states, discloses, or advertises to be a
622	622	voluntary contribution from the consumer.
623	623	SECTION 39. Section 1956.0614(b), Occupations Code, is
624	624	amended to read as follows:
625	625	(b) If the commissioner proposes to revoke a registration,
626	626	the dealer is entitled to notice and an opportunity for a hearing
627	627	before the commissioner or a hearings officer, who shall propose a
628	628	decision to the commissioner. The commissioner or hearings
629	629	officer shall prescribe the time and place of the hearing if the
630	630	dealer makes a written request for a hearing not later than the 20th
631	631	day after the date the dealer receives the notice of the
632	632	hearing. The hearing is governed by Chapter 2001, Government Code.
633	633	SECTION 40. Sections 32.06(d-1) and (f-3), Tax Code, are
634	634	amended to read as follows:
635	635	(d-1) A right of rescission described by the Truth in
636	636	Lending Act (15 U.S.C. Section 1635) and Regulation Z (12 C.F.R.
637	637	Section 1026.23) [12 C.F.R. Section 226.23] applies to a transfer
638	638	under this section of a tax lien on residential property owned and
639	639	used by the property owner for personal, family, or household
640	640	purposes.
641	641	(f-3) Notwithstanding any contractual agreement with the
642	642	property owner, the transferee of a tax lien must provide the payoff
643	643	information required by this section to the greatest extent
644	644	permitted by the Gramm-Leach-Bliley Act (15 U.S.C. Section 6802)
645	645	and Regulation P (12 C.F.R. Section 1016) [15 U.S.C. Section 6802
646	646	and 12 C.F.R. Part 216]. The payoff statement must meet the
647	647	requirements of a payoff statement defined by Section 12.017,
648	648	Property Code. A transferee may charge a reasonable fee for a
649	649	payoff statement that is requested after an initial payoff
650	650	statement is provided. However, a transferee is not required to
651	651	release payoff information pursuant to a notice under Subsection
652	652	(f-1) unless the notice contains the information prescribed by the
653	653	Finance Commission of Texas.
654	654	SECTION 41. Sections 11.305(a), (b), and (c), Finance Code,
655	655	are repealed.
656	656	SECTION 42. This Act takes effect September 1, 2015.