84R2965 CLG-D
By: Farias H.B. No. 322
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of persons who facilitate the issuance
of tax refund anticipation checks.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 352, Finance Code, is
amended to read as follows:
CHAPTER 352. TAX REFUND ANTICIPATION LOANS AND TAX REFUND
ANTICIPATION CHECKS
SECTION 2. Section 352.001, Finance Code, is amended by
adding Subdivisions (1-a) and (3-a) and amending Subdivision (2) to
read as follows:
(1-a) "Consumer" means an individual who applies for or
receives the proceeds of a refund anticipation check.
(2) "Facilitator" means a person who processes,
receives, or accepts for delivery an application for a refund
anticipation loan or a refund anticipation check, delivers a check
in payment of refund anticipation loan proceeds, or in any other
manner acts to allow the making of a refund anticipation loan or the
issuance of a refund anticipation check.
(3-a) "Refund anticipation check" means a check, stored
value card, or other payment mechanism:
(A) that represents the proceeds of the
consumer's tax refund;
(B) that is issued by a depository institution or
other person who receives a direct deposit of the consumer's tax
refund or tax credits; and
(C) for which the consumer pays a fee or other
consideration.
SECTION 3. Section 352.002(b), Finance Code, is amended to
read as follows:
(b) This section does not apply to:
(1) a bank, thrift, savings association, industrial
bank, or credit union operating under the laws of the United States
or this state;
(2) an affiliate that is a servicer of a person
described by Subdivision (1) operating under the name of that
person; or
(3) any person who acts solely as an intermediary and
does not interact directly with a taxpayer in the making of the
refund anticipation loan or issuance of a refund anticipation
check.
SECTION 4. Section 352.003(a), Finance Code, is amended to
read as follows:
(a) To register as a facilitator, a person must provide to
the commissioner, on or before December 31 preceding each calendar
year in which the person seeks to act as a facilitator:
(1) a list of each location in this state at which
e-file providers authorized by the Internal Revenue Service file
tax returns on behalf of borrowers for whom the facilitator acts to
allow the making of a refund anticipation loan or acts to facilitate
the issuance of a refund anticipation check; and
(2) a processing fee for each location included on the
list furnished under Subdivision (1).
SECTION 5. The heading to Section 352.004, Finance Code, is
amended to read as follows:
Sec. 352.004. DISCLOSURE REQUIREMENTS FOR REFUND
ANTICIPATION LOANS.
SECTION 6. Chapter 352, Finance Code, is amended by adding
Section 352.0041 to read as follows:
Sec. 352.0041. DISCLOSURE REQUIREMENTS FOR REFUND
ANTICIPATION CHECKS. (a) A facilitator to which Section 352.002
applies shall discuss with and clearly disclose to a consumer:
(1) the refund anticipation check fee schedule;
(2) a written statement disclosing:
(A) that the taxpayer may file an income tax
return electronically without applying for a refund anticipation
check;
(B) the average time, as published by the
Internal Revenue Service, within which a taxpayer can expect to
receive a refund for an income tax return filed electronically and
within which the refund is:
(i) deposited directly into the taxpayer's
bank account; or
(ii) mailed to the taxpayer; and
(C) that the Internal Revenue Service does not
guarantee payment of the full amount of the anticipated refund;
and
(3) the estimated total fees for the check.
(b) A refund anticipation check fee schedule required by
Subsection (a)(1) must be a listing or table of fees charged for the
issuance of a refund anticipation check. The schedule shall:
(1) list separately each fee imposed related to the
issuance of a refund anticipation check; and
(2) list the total amount of fees imposed related to
the issuance of a refund anticipation check.
(c) A facilitator who advertises or markets refund
anticipation checks in Spanish shall offer any consumer the option
of receiving a Spanish-language printed disclosure and
contract. A facilitator who negotiates a refund anticipation
check with a consumer in Spanish shall offer that consumer the
option of receiving a Spanish-language printed disclosure and
contract.
SECTION 7. Section 352.008, Finance Code, is amended to
read as follows:
Sec. 352.008. PREEMPTION OF LOCAL ORDINANCE. This chapter
preempts a local ordinance or rule regulating refund anticipation
loans or refund anticipation checks.
SECTION 8. This Act takes effect January 1, 2016.