Texas 2015 - 84th Regular

Texas Senate Bill SB1282 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~84R31524~~ ATP-D
	1	+	84R27692 ATP-F
2	2		By: Eltife S.B. No. 1282
3	3		(Parker)
4	4		Substitute the following for S.B. No. 1282: No.
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		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12		SECTION 1. Section 11.305(a), Finance Code, is amended to
13	13		read as follows:
14	14		(a) The [finance commission shall instruct the] consumer
15	15		credit commissioner shall [to] establish a program to address
16	16		alternatives to high-cost lending in this state. The program
17	17		shall:
18	18		(1) study and report on [the problem of] high-cost
19	19		lending, including without limitation the availability, quality,
20	20		and prices of financial services[, including lending and depository
21	21		services,] offered in this state to [agricultural businesses, small
22	22		businesses, and] individual consumers in this state; and
23	23		(2) evaluate alternatives to high-cost lending and the
24	24		practices of business entities in this state that provide financial
25	25		services to [agricultural businesses, small businesses, and]
26	26		individual consumers in this state[;
27	27		[(3) develop models to provide lower-cost
28	28		alternatives to assist borrowers who contract for high-cost loans;
29	29		and
30	30		[(4) track the location of lenders who enter into loan
31	31		contracts providing for an interest charge authorized by Section
32	32		342.201, map the location of the lenders by senatorial district and
33	33		by any other appropriate areas, provide other demographic
34	34		information relating to the loans and the location of the lenders,
35	35		and provide information on the changes in the distribution of the
36	36		lenders from 1997 through the date of the report].
37	37		SECTION 2. Section 14.2015, Finance Code, is amended to
38	38		read as follows:
39	39		Sec. 14.2015. CONFIDENTIALITY OF CERTAIN INFORMATION.
40	40		(a) Except as provided by Subsection (b), information or material
41	41		obtained or compiled by the commissioner in relation to an
42	42		examination or investigation by the commissioner or the
43	43		commissioner's representative of a license holder, registrant,
44	44		applicant, or other person under a provision listed in Section
45	45		14.201 [Section 339.001, Subtitle B or C, Title 4, Subchapter G of
46	46		Chapter 393, or Chapter 394] is confidential and may not be
47	47		disclosed by the commissioner or an officer or employee of the
48	48		Office of Consumer Credit Commissioner, including:
49	49		(1) information obtained from the [a] license holder,
50	50		registrant, applicant, or other person examined or investigated
51	51		[under Section 339.001, Subtitle B or C, Title 4, Subchapter G of
52	52		Chapter 393, or Chapter 394];
53	53		(2) work performed by the commissioner or the
54	54		commissioner's representative on information obtained from the [a]
55	55		license holder, registrant, applicant, or other person for the
56	56		purposes of an examination or investigation [conducted under
57	57		Section 339.001, Subtitle B or C, Title 4, Chapter 393 with
58	58		respect to a credit access business, or Chapter 394];
59	59		(3) a report on an examination or investigation of the
60	60		[a] license holder, registrant, applicant, or other person
61	61		[conducted under Section 339.001, Subtitle B or C, Title 4, Chapter
62	62		393 with respect to a credit access business, or Chapter 394]; and
63	63		(4) any written communications between the license
64	64		holder, registrant, applicant, or other person, as applicable, and
65	65		the commissioner or the commissioner's representative relating to
66	66		or referencing the [an] examination or investigation [conducted
67	67		under Section 339.001, Subtitle B or C, Title 4, Chapter 393 with
68	68		respect to a credit access business, or Chapter 394].
69	69		(b) The commissioner or the commissioner's representative
70	70		may disclose the confidential information or material described by
71	71		Subsection (a):
72	72		(1) to a department, agency, or instrumentality of
73	73		this state or the United States if the commissioner considers
74	74		disclosure to be necessary or proper to the enforcement of the laws
75	75		of this state or the United States and in the best interest of the
76	76		public;
77	77		(2) if the information was provided to or provided by
78	78		the license holder, registrant, applicant, or other person, and the
79	79		person consents to the release of the information or has published
80	80		the information contained in the release; or
81	81		(3) if the commissioner determines that release of the
82	82		information is required for an administrative hearing.
83	83		SECTION 3. Section 14.251, Finance Code, is amended by
84	84		adding Subsection (c) to read as follows:
85	85		(c) An order of restitution under Subsection (b) is subject
86	86		to the notice, procedure, and enforcement provisions of Sections
87	87		14.253 through 14.260 applicable to an administrative penalty.
88	88		SECTION 4. Section 14.256, Finance Code, is amended to read
89	89		as follows:
90	90		Sec. 14.256. ACCEPTANCE OF PENALTY; DEFAULT. If a person
91	91		accepts the determination and recommended penalty of the
92	92		commissioner or fails to make a timely written request for a
93	93		hearing, the commissioner by order shall approve the determination
94	94		and impose the recommended penalty.
95	95		SECTION 5. Section 14.257(a), Finance Code, is amended to
96	96		read as follows:
97	97		(a) If a person makes a timely written request for
98	98		[requests] a hearing [or fails to give a timely response to the
99	99		notice], the commissioner shall set a hearing and give notice of the
100	100		hearing to the person by certified mail.
101	101		SECTION 6. Section 180.002(5), Finance Code, is amended to
102	102		read as follows:
103	103		(5) "Dwelling" has the meaning assigned by Section
104	104		103(w) [103(v)] of the Truth in Lending Act (15 U.S.C. Section
105	105		1602(w) [1602(v)]).
106	106		SECTION 7. Section 303.015(c), Finance Code, is amended to
107	107		read as follows:
108	108		(c) A variable rate agreement for credit extended primarily
109	109		for personal, family, or household use must include the disclosures
110	110		identified for variable rate contracts required by regulations
111	111		issued by the Federal Reserve Board and the Bureau of Consumer
112	112		Financial Protection under the Truth in Lending Act (15 U.S.C.
113	113		Section 1601 et seq.), as amended, except that if that Act does not
114	114		apply because of the amount of the transaction, the following
115	115		disclosure must be included in a size equal to at least 10-point
116	116		type that is boldface, capitalized, underlined, or otherwise set
117	117		out from surrounding material so as to be conspicuous:
118	118		"NOTICE TO CONSUMER: UNDER TEXAS LAW, IF YOU CONSENT TO THIS
119	119		AGREEMENT, YOU MAY BE SUBJECT TO A FUTURE RATE AS HIGH AS 24 PERCENT
120	120		PER YEAR."
121	121		SECTION 8. Section 303.402(a), Finance Code, is amended to
122	122		read as follows:
123	123		(a) A person who contracts for, charges, or receives under a
124	124		contract subject to Chapter 342, 345, 346, 347, 348, or 353,
125	125		including a contract for an open-end account, a rate or amount of
126	126		interest or time price differential that exceeds the maximum
127	127		applicable rate or amount authorized by the applicable chapter and
128	128		the maximum applicable rate or amount authorized by [or] this
129	129		chapter is subject to a penalty for that violation determined under
130	130		Chapter 349.
131	131		SECTION 9. Sections 308.002(c) and (e), Finance Code, are
132	132		amended to read as follows:
133	133		(c) In interpreting this section, an administrative agency
134	134		or a court shall be guided by the applicable advertising provisions
135	135		of:
136	136		(1) Part C of the Truth in Lending Act [15 U.S.C.
137	137		Chapter 41, Subchapter I] (15 U.S.C. Section 1661 [1601] et seq.);
138	138		(2) Regulation Z (12 C.F.R. Parts 226 and 1026) [12
139	139		C.F.R. Part 226] adopted by the Board of Governors of the Federal
140	140		Reserve System and the Bureau of Consumer Financial Protection; and
141	141		(3) the Official Staff Commentary and other
142	142		interpretations of that statute and regulation by the Board of
143	143		Governors of the Federal Reserve System, the Bureau of Consumer
144	144		Financial Protection, and the staff of those agencies [its staff].
145	145		(e) A creditor who complies with the Truth in Lending Act
146	146		(15 U.S.C. Section 1601 et seq.) and [Federal Reserve] Regulation Z
147	147		(12 C.F.R. Parts [Part] 226 and 1026) in advertising a credit
148	148		transaction is considered to have fully complied with this section.
149	149		SECTION 10. Section 341.301(a), Finance Code, is amended to
150	150		read as follows:
151	151		(a) In each advertisement that purports to offer credit
152	152		regulated by this subtitle, Subtitle C, or Chapter 394, the
153	153		advertiser shall disclose the legal or registered name of the
154	154		advertiser and:
155	155		(1) shall disclose the street address of the
156	156		advertiser's place of business unless the advertisement:
157	157		(A) is located on the premises of the
158	158		advertiser's place of business; or
159	159		(B) is broadcast by radio or television; or
160	160		(2) if the advertisement is broadcast by radio or
161	161		television, shall:
162	162		(A) disclose the telephone number of the
163	163		advertiser; and
164	164		(B) comply with the applicable disclosure
165	165		requirements of Regulation Z (12 C.F.R. Parts 226 and 1026) [12
166	166		C.F.R. Section 226.1 et seq. (Regulation Z)].
167	167		SECTION 11. Section 341.401(b), Finance Code, is amended to
168	168		read as follows:
169	169		(b) In interpreting this section, a court or administrative
170	170		agency shall be guided by the Equal Credit Opportunity Act (15
171	171		U.S.C. Section 1691 et seq.) and regulations under and
172	172		interpretations of that Act by the Federal Reserve Board and the
173	173		Bureau of Consumer Financial Protection to the extent that Act and
174	174		those regulations and interpretations can be made applicable to
175	175		conduct prohibited by this section.
176	176		SECTION 12. Section 341.402(b), Finance Code, is amended to
177	177		read as follows:
178	178		(b) The liability of a person under this section is instead
179	179		of and not in addition to that person's liability under the Equal
180	180		Credit Opportunity [Title VII of the Consumer Credit Protection]
181	181		Act (15 U.S.C. Section 1691 et seq.). If the same act or omission
182	182		violates Section 341.401 and applicable federal law, the person
183	183		aggrieved by that conduct may bring a legal action to recover
184	184		monetary damages either under this section or under that federal
185	185		law, but not both.
186	186		SECTION 13. Section 341.502(a-1), Finance Code, is amended
187	187		to read as follows:
188	188		(a-1) If the terms of the agreement for a loan under
189	189		Subsection (a) were negotiated in Spanish, a copy of a summary of
190	190		those terms and other pertinent information shall be provided to
191	191		the debtor in Spanish in a form identical to disclosures required
192	192		for a closed-end transaction under 12 C.F.R. Sections [Section]
193	193		226.18 and 1026.18.
194		-	SECTION 14. Section 342.001, Finance Code, is amended by
195		-	adding Subdivisions (5) and (6) to read as follows:
196		-	(5) "Consumer civil justice lender" means a person
197		-	that enters into a consumer civil justice lending transaction with
198		-	a consumer. The term does not include an attorney who, at the time
199		-	money is provided to or on behalf of a consumer in a consumer civil
200		-	justice lending transaction, has an attorney-client relationship
201		-	with the consumer concerning the consumer's dispute.
202		-	(6) "Consumer civil justice lending transaction"
203		-	means a non-recourse transaction in which a consumer civil justice
204		-	lender purchases, and a consumer assigns to the lender, a
205		-	contingent right to receive an amount of the potential proceeds of a
206		-	settlement, judgment, award, or verdict obtained in the consumer's
207		-	legal claim.
208		-	SECTION 15. Section 342.005, Finance Code, is amended to
209		-	read as follows:
210		-	Sec. 342.005. APPLICABILITY OF CHAPTER. (a) Except as
211		-	provided by Sections 302.001(d) and 342.004(c), a loan is subject
212		-	to this chapter if the loan:
213		-	(1) provides for interest in excess of 10 percent a
214		-	year;
215		-	(2) is extended primarily for personal, family, or
216		-	household use;
217		-	(3) is made by a person engaged in the business of
218		-	making, arranging, or negotiating those types of loans; and
219		-	(4) either:
220		-	(A) is not secured by a lien on real property; or
221		-	(B) is described by Section 342.001(4), 342.301,
222		-	or 342.456 and is predominantly payable in monthly installments.
223		-	(b) A consumer civil justice lending transaction is subject
224		-	to this chapter. The amounts provided by the consumer civil justice
225		-	lender to the consumer in a consumer civil justice lending
226		-	transaction are considered to be amounts extended primarily for
227		-	personal, family, or household use, may not be paid to any other
228		-	person who is not the sole payee of the transaction, and may not
229		-	provide for interest in excess of 36 percent a year.
230		-	SECTION 16. Section 342.156, Finance Code, is amended to
	194	+	SECTION 14. Section 342.156, Finance Code, is amended to
231	195		read as follows:
232	196		Sec. 342.156. LICENSE SUSPENSION OR REVOCATION. After
233	197		notice and an opportunity for a hearing the commissioner may
234	198		suspend or revoke a license if the commissioner finds that:
235	199		(1) the license holder failed to pay the annual
236	200		license fee, an examination fee, an investigation fee, or another
237	201		charge imposed by the commissioner under this chapter;
238	202		(2) the license holder, knowingly or without the
239	203		exercise of due care, violated this chapter or a rule adopted or
240	204		order issued under this chapter;
241	205		(3) a fact or condition exists that, if it had existed
242	206		or had been known to exist at the time of the original application
243	207		for the license, clearly would have justified the commissioner's
244	208		denial of the application; or
245	209		(4) the license holder has failed to ensure that an
246	210		individual acting as a residential mortgage loan originator, as
247	211		defined by Section 180.002, in the making, transacting, or
248	212		negotiating of a loan subject to this chapter is licensed under this
249	213		chapter in accordance with Section 342.0515.
250		-	SECTION 17. Section 342.201, Finance Code, is amended by
	214	+	SECTION 15. Section 342.201, Finance Code, is amended by
251	215		adding Subsection (e-1) to read as follows:
252	216		(e-1) The interest charge under Subsection (e) must be
253	217		contracted for, charged, or received using the scheduled
254	218		installment earnings method or the true daily earnings method under
255	219		one of the following methods:
256	220		(1) applying the applicable daily rate to each part of
257	221		the unpaid principal balance corresponding to the brackets
258	222		described by Subsection (e) for the actual or scheduled number of
259	223		days during a payment period; or
260	224		(2) applying a single equivalent daily rate to the
261	225		unpaid principal balance for the actual or scheduled number of days
262	226		during a payment period, where the single equivalent daily rate is
263	227		determined at the inception of the loan using the scheduled
264	228		installment earnings method and would earn an amount of interest
265	229		authorized under Subsection (e) if the debt were paid to maturity
266	230		according to the schedule of payments.
267		-	SECTION 18. Section 343.201, Finance Code, is amended to
	231	+	SECTION 16. Section 343.201, Finance Code, is amended to
268	232		read as follows:
269	233		Sec. 343.201. DEFINITIONS. In this subchapter:
270	234		(1) "High-cost home loan" means a loan that:
271	235		(A) is made to one or more individuals for
272	236		personal, family, or household purposes;
273	237		(B) is secured in whole or part by:
274	238		(i) a manufactured home, as defined by
275	239		Section 347.002, used or to be used as the borrower's principal
276	240		residence; or
277	241		(ii) real property improved by a dwelling
278	242		designed for occupancy by four or fewer families and used or to be
279	243		used as the borrower's principal residence;
280	244		(C) has a principal amount equal to or less than
281	245		one-half of the maximum conventional loan amount for first
282	246		mortgages as established and adjusted by the Federal National
283	247		Mortgage Association;
284	248		(D) is not:
285	249		(i) a reverse mortgage; or
286	250		(ii) an open-end account, as defined by
287	251		Section 301.002; and
288	252		(E) is a credit transaction described by 12
289	253		C.F.R. Section 1026.32 [226.32], as amended, except that the term
290	254		includes a residential mortgage transaction, as defined by 12
291	255		C.F.R. Section 1026.2 [226.2], as amended, if the total loan amount
292	256		is $20,000 or more and:
293	257		(i) the annual percentage rate exceeds the
294	258		rate indicated in 12 C.F.R. Section 1026.32(a)(1)(i)
295	259		[226.32(a)(1)(i)], as amended; or
296	260		(ii) the total points and fees payable by
297	261		the consumer at or before loan closing will exceed the amount
298	262		indicated in 12 C.F.R. Section 1026.32(a)(1)(ii)
299	263		[226.32(a)(1)(ii)], as amended.
300	264		(2) "Points and fees" has the meaning assigned by 12
301	265		C.F.R. Section 1026.32(b) [226.32(b)], as amended.
302		-	SECTION 19. Section 345.106, Finance Code, is amended to
	266	+	SECTION 17. Section 345.106, Finance Code, is amended to
303	267		read as follows:
304	268		Sec. 345.106. PROCESSING FEE FOR RETURNED CHECK. A retail
305	269		charge agreement may provide that the holder of the agreement may:
306	270		(1) charge the retail buyer, on return of a dishonored
307	271		check given in payment under the agreement, a reasonable processing
308	272		fee that does not exceed the amount prescribed by Section 3.506,
309	273		Business & Commerce Code [is not more than $15]; and
310	274		(2) add the fee to the unpaid balance under the
311	275		agreement.
312		-	SECTION 20. Section 347.002(b), Finance Code, is amended to
	276	+	SECTION 18. Section 347.002(b), Finance Code, is amended to
313	277		read as follows:
314	278		(b) To the extent possible, a word or phrase used in this
315	279		chapter, other than a term defined by this section, has the meaning
316	280		assigned by the Truth in Lending [Part I, Consumer Credit
317	281		Protection] Act (15 U.S.C. Section 1601 et seq.) and its subsequent
318	282		amendments, as implemented by Regulation Z (12 C.F.R. Part 1026)
319	283		[12 C.F.R. 226.1 et seq].
320		-	SECTION 21. Section 347.004(a), Finance Code, is amended to
	284	+	SECTION 19. Section 347.004(a), Finance Code, is amended to
321	285		read as follows:
322	286		(a) A creditor shall comply with all applicable
323	287		requirements, including required disclosures, under the Truth in
324	288		Lending [Part I, Consumer Credit Protection] Act (15 U.S.C. Section
325	289		1601 et seq.) and its subsequent amendments, as implemented by
326	290		Regulation Z (12 C.F.R. Part 1026) [12 C.F.R. 226.1 et seq.
327	291		(Regulation Z)] adopted under that Act.
328		-	SECTION 22. Section 347.056, Finance Code, is amended to
	292	+	SECTION 20. Section 347.056, Finance Code, is amended to
329	293		read as follows:
330	294		Sec. 347.056. AUTHORITY OF CONSUMER CREDIT COMMISSIONER
331	295		RELATING TO A CREDIT DOCUMENT. Except as provided by Section
332	296		347.004(a), the [The] commissioner may not require the inclusion of
333	297		any specific language or a disclosure on a credit document that is
334	298		not expressly required by:
335	299		(1) this chapter; or
336	300		(2) a regulation of the Office of the Comptroller of
337	301		the Currency [Thrift Supervision].
338		-	SECTION 23. Section 347.155(b), Finance Code, is amended to
	302	+	SECTION 21. Section 347.155(b), Finance Code, is amended to
339	303		read as follows:
340	304		(b) On prepayment, after deduction of an acquisition charge
341	305		that does not exceed $50, the consumer is entitled to a refund
342	306		credit of the time price differential or interest. The amount of
343	307		the credit is computed on an actuarial basis in accordance with
344	308		regulations of the Office of the Comptroller of the Currency
345	309		[Thrift Supervision] adopted under the Depository Institutions
346	310		Deregulation and Monetary Control Act of 1980 (12 U.S.C. Section
347	311		1735f-7a [4a] et seq.) for the prepayment of a mortgage loan that is
348	312		secured by a first lien on a residential manufactured home.
349		-	SECTION 24. Section 347.356, Finance Code, is amended to
	313	+	SECTION 22. Section 347.356, Finance Code, is amended to
350	314		read as follows:
351	315		Sec. 347.356. REQUIREMENTS FOR ACTION TO REPOSSESS,
352	316		FORECLOSE, OR ACCELERATE PAYMENT OF ENTIRE DEBT. An action to
353	317		repossess a manufactured home, foreclose a lien on a manufactured
354	318		home, or accelerate payment of the entire unpaid balance of a credit
355	319		transaction must comply with the regulations of the Office of the
356	320		Comptroller of the Currency [Thrift Supervision] relating to the
357	321		disclosure required for repossession, foreclosure, or acceleration
358	322		except in extreme circumstances, including abandonment or
359	323		voluntary surrender of the manufactured home.
360		-	SECTION 25. Section 347.455(b), Finance Code, is amended to
	324	+	SECTION 23. Section 347.455(b), Finance Code, is amended to
361	325		read as follows:
362	326		(b) If the real property is included in the cash price of a
363	327		credit transaction, the creditor may:
364	328		(1) charge a fee that is ordinarily associated with a
365	329		real property transaction and is not prohibited by law, including a
366	330		fee that is associated with a real property transaction and
367	331		excluded from a finance charge under this chapter by the Consumer
368	332		Credit Protection Act (15 U.S.C. Section 1601 et seq.) and
369	333		Regulation Z (12 C.F.R. Part 1026) [12 C.F.R. Section 226.1 et seq.
370	334		(Regulation Z)] adopted under that Act; and
371	335		(2) elect to treat the manufactured home as if it were
372	336		residential real property for all purposes in connection with the
373	337		credit transaction by conspicuously disclosing that election to the
374	338		consumer.
375		-	SECTION 26. Section 348.005, Finance Code, as amended by
	339	+	SECTION 24. Section 348.005, Finance Code, as amended by
376	340		Chapters 355 (H.B. 2462), 1135 (H.B. 2741), and 1287 (H.B. 2202),
377	341		Acts of the 83rd Legislature, Regular Session, 2013, is reenacted
378	342		and amended to read as follows:
379	343		Sec. 348.005. ITEMIZED CHARGE. An amount in a retail
380	344		installment contract is an itemized charge if the amount is not
381	345		included in the cash price and is the amount of:
382	346		(1) the price of accessories;
383	347		(1-a) the price of services related to the sale;
384	348		(1-b) fees for registration, certificate of title, and
385	349		license and any additional registration fees charged by a deputy as
386	350		authorized by rules adopted under Section 520.0071 [520.008],
387	351		Transportation Code;
388	352		(2) any taxes;
389	353		(3) fees or charges prescribed by law and connected
390	354		with the sale or inspection of the motor vehicle; and
391	355		(4) charges authorized for insurance, service
392	356		contracts, warranties, automobile club memberships, or a debt
393	357		cancellation agreement by this chapter [Subchapter C].
394		-	SECTION 27. Section 348.009(a), Finance Code, is amended to
	358	+	SECTION 25. Section 348.009(a), Finance Code, is amended to
395	359		read as follows:
396	360		(a) The disclosure requirements of Regulation Z (12 C.F.R.
397	361		Parts 226 and 1026) [12 C.F.R. Part 226 (Regulation Z)] adopted
398	362		under the Truth in Lending Act (15 U.S.C. Section 1601 et seq.) and
399	363		specifically 12 C.F.R. Sections [Section] 226.18(f) and
400	364		1026.18(f), regarding variable rate disclosures, apply according
401	365		to their terms to retail installment transactions.
402		-	SECTION 28. Section 348.208(b), Finance Code, is amended to
	366	+	SECTION 26. Section 348.208(b), Finance Code, is amended to
403	367		read as follows:
404	368		(b) A retail installment contract may include as a separate
405	369		charge an amount for:
406	370		(1) motor vehicle property damage or bodily injury
407	371		liability insurance;
408	372		(2) mechanical breakdown insurance;
409	373		(3) participation in a [motor] vehicle [theft]
410	374		protection product authorized under Chapter 2306, Occupations Code
411	375		[plan];
412	376		(4) insurance to reimburse the retail buyer for the
413	377		amount computed by subtracting the proceeds of the buyer's basic
414	378		collision policy on the motor vehicle from the amount owed on the
415	379		vehicle if the vehicle has been rendered a total loss;
416	380		(5) a warranty or service contract relating to the
417	381		motor vehicle;
418	382		(6) an identity recovery service contract; or
419	383		(7) a debt cancellation agreement if the agreement is
420	384		included as a term of a retail installment contract under Section
421	385		348.124.
422		-	SECTION 29. Section 348.404(d), Finance Code, is amended to
	386	+	SECTION 27. Section 348.404(d), Finance Code, is amended to
423	387		read as follows:
424	388		(d) A retail seller may include money advanced under
425	389		Subsection (b) in the retail installment contract only if it is
426	390		included as an itemized charge and may disclose money advanced
427	391		under Subsection (b) in any manner permitted by Regulation Z (12
428	392		C.F.R. Parts 226 and 1026) [12 C.F.R. Part 226 (Regulation Z)]
429	393		adopted under the Truth in Lending Act (15 U.S.C. Section 1601 et
430	394		seq.). Section 349.003 does not apply to this subsection. This
431	395		subsection does not create a private right of action. The
432	396		commissioner has exclusive jurisdiction to enforce this
433	397		subsection.
434		-	SECTION 30. Section 348.508, Finance Code, is amended to
	398	+	SECTION 28. Section 348.508, Finance Code, is amended to
435	399		read as follows:
436	400		Sec. 348.508. LICENSE SUSPENSION OR REVOCATION. After
437	401		notice and an opportunity for a hearing the commissioner may
438	402		suspend or revoke a license if the commissioner finds that:
439	403		(1) the license holder failed to pay the annual
440	404		license fee, an examination fee, an investigation fee, or another
441	405		charge imposed by the commissioner;
442	406		(2) the license holder, knowingly or without the
443	407		exercise of due care, violated this chapter or a rule adopted or
444	408		order issued under this chapter; or
445	409		(3) a fact or condition exists that, if it had existed
446	410		or had been known to exist at the time of the original application
447	411		for the license, clearly would have justified the commissioner's
448	412		denial of the application.
449		-	SECTION 31. Section 351.0022, Finance Code, is amended to
	413	+	SECTION 29. Section 351.0022, Finance Code, is amended to
450	414		read as follows:
451	415		Sec. 351.0022. WAIVER PROHIBITED. Except as specifically
452	416		permitted by this chapter or Chapter 32, Tax Code, a property owner
453	417		may not waive or limit a requirement imposed on a property tax
454	418		lender by this chapter or Chapter 32, Tax Code.
455		-	SECTION 32. Subchapter A, Chapter 351, Finance Code, is
	419	+	SECTION 30. Subchapter A, Chapter 351, Finance Code, is
456	420		amended by adding Section 351.0081 to read as follows:
457	421		Sec. 351.0081. LENDER'S RECORDS; DOCUMENT RETENTION
458	422		REQUIREMENTS. (a) A property tax lender shall maintain a record of
459	423		each property tax loan made under this chapter as necessary to
460	424		enable the commissioner to determine whether the lender is
461	425		complying with this chapter.
462	426		(b) A property tax lender shall keep the record until the
463	427		later of:
464	428		(1) the fourth anniversary of the date of the property
465	429		tax loan; or
466	430		(2) the second anniversary of the date on which the
467	431		final entry is made in the record.
468	432		(c) A record described by Subsection (a) must be prepared in
469	433		accordance with accepted accounting practices.
470	434		(d) The commissioner shall accept a lender's system of
471	435		records if the system discloses the information reasonably required
472	436		under Subsection (a).
473	437		(e) A property tax lender shall keep each obligation signed
474	438		by a property owner at an office in this state designated by the
475	439		lender unless the obligation is transferred under an agreement that
476	440		gives the commissioner access to the obligation.
477		-	SECTION 33. Section 351.156, Finance Code, is amended to
	441	+	SECTION 31. Section 351.156, Finance Code, is amended to
478	442		read as follows:
479	443		Sec. 351.156. LICENSE SUSPENSION OR REVOCATION. After
480	444		notice and an opportunity for a hearing the commissioner may
481	445		suspend or revoke a license if the commissioner finds that:
482	446		(1) the license holder failed to pay the annual
483	447		license fee, an examination fee, an investigation fee, or another
484	448		charge imposed by the commissioner under this chapter;
485	449		(2) the license holder, knowingly or without the
486	450		exercise of due care, violated this chapter or Section 32.06 or
487	451		32.065, Tax Code, or a rule adopted or an order issued under this
488	452		chapter or Section 32.06 or 32.065, Tax Code;
489	453		(3) a fact or condition exists that, if it had existed
490	454		or had been known to exist at the time of the original application
491	455		for the license, clearly would have justified the commissioner's
492	456		denial of the application; or
493	457		(4) the license holder has failed to ensure that an
494	458		individual acting as a residential mortgage loan originator, as
495	459		defined by Section 180.002, in the making, transacting, or
496	460		negotiating of a property tax loan for a principal dwelling is
497	461		licensed under this chapter in accordance with Section 351.0515.
498		-	SECTION 34. Section 352.006(b), Finance Code, is amended to
	462	+	SECTION 32. Section 352.006(b), Finance Code, is amended to
499	463		read as follows:
500	464		(b) If the commissioner proposes to revoke a registration,
501	465		the facilitator is entitled to notice and an opportunity for a
502	466		hearing before the commissioner or a hearings officer, who shall
503	467		propose a decision to the commissioner. The commissioner or
504	468		hearings officer shall prescribe the time and place of the hearing
505	469		if the facilitator makes a written request for a hearing not later
506	470		than the 20th day after the date the facilitator receives the notice
507	471		of hearing. The hearing is governed by Chapter 2001, Government
508	472		Code.
509		-	SECTION 35. Section 353.508, Finance Code, is amended to
	473	+	SECTION 33. Section 353.508, Finance Code, is amended to
510	474		read as follows:
511	475		Sec. 353.508. LICENSE SUSPENSION OR REVOCATION. After
512	476		notice and an opportunity for a hearing the commissioner may
513	477		suspend or revoke a license if the commissioner finds that:
514	478		(1) the license holder failed to pay the annual
515	479		license fee, an investigation fee, or another charge imposed by the
516	480		commissioner;
517	481		(2) the license holder, knowingly or without the
518	482		exercise of due care, violated this chapter or a rule adopted or
519	483		order issued under this chapter; or
520	484		(3) a fact or condition exists that, if it had existed
521	485		or had been known to exist at the time of the original application
522	486		for the license, clearly would have justified the commissioner's
523	487		denial of the application.
524		-	SECTION 36. Section 371.157, Finance Code, is amended to
	488	+	SECTION 34. Section 371.157, Finance Code, is amended to
525	489		read as follows:
526	490		Sec. 371.157. PAWN TICKET. A pawnbroker, at the time a pawn
527	491		transaction is entered, shall deliver to the pledgor a pawn ticket
528	492		or other memorandum that clearly shows:
529	493		(1) the name and address of the pawnshop;
530	494		(2) the pledgor's name, address, and physical
531	495		description and a driver's license number, military identification
532	496		number, identification certificate number, or other official
533	497		number that can identify the pledgor;
534	498		(3) the date of the transaction;
535	499		(4) an identification and description of the pledged
536	500		goods, including serial numbers if reasonably available;
537	501		(5) the amount of cash advanced or credit extended to
538	502		the pledgor, designated as "Amount Financed";
539	503		(6) the amount of the pawn service charge, designated
540	504		as "Finance Charge";
541	505		(7) the total amount, consisting of the amount
542	506		financed plus the finance charge, that must be paid to redeem the
543	507		pledged goods on the maturity date, designated as "Total of
544	508		Payments";
545	509		(8) the "Annual Percentage Rate," computed according
546	510		to Regulation Z (12 C.F.R. Part 1026) adopted [regulations issued]
547	511		by the Bureau of Consumer Financial Protection [Federal Reserve
548	512		Board] under the Truth in Lending Act (15 U.S.C. Section 1601 et
549	513		seq.), as amended;
550	514		(9) the maturity date of the pawn transaction; and
551	515		(10) a statement that:
552	516		(A) the pledgor is not obligated to redeem the
553	517		pledged goods; and
554	518		(B) the pledged goods may be forfeited to the
555	519		pawnbroker on the 31st day after the maturity date.
556		-	SECTION 37. Section 371.251(a), Finance Code, is amended to
	520	+	SECTION 35. Section 371.251(a), Finance Code, is amended to
557	521		read as follows:
558	522		(a) After notice and an opportunity for a hearing, the
559	523		commissioner may revoke or suspend a pawnshop license if the
560	524		commissioner finds that:
561	525		(1) the pawnbroker has not paid a fee or charge imposed
562	526		by the commissioner under this chapter;
563	527		(2) the pawnbroker, knowingly or without exercising
564	528		due care to prevent the violation, has violated this chapter or a
565	529		rule adopted or an order issued under this chapter;
566	530		(3) a fact or condition exists that, if it had existed
567	531		or had been known to exist at the time of the original license
568	532		application, clearly would have justified refusal to issue the
569	533		license;
570	534		(4) the pawnbroker has established an association with
571	535		an unlicensed person who, with the knowledge of the pawnbroker, has
572	536		violated this chapter;
573	537		(5) the pawnbroker has aided or conspired with a
574	538		person to circumvent this chapter;
575	539		(6) the pawnbroker or a legal or beneficial owner of
576	540		the pawnbroker is not of good moral character or has been convicted
577	541		of a crime that the commissioner finds directly relates to the
578	542		duties and responsibilities of the occupation of pawnbroker or
579	543		would otherwise make the person unfit for a pawnshop license under
580	544		Section 371.052;
581	545		(7) the financial responsibility, experience,
582	546		character, or general fitness of the pawnbroker or its owners and
583	547		managers do not command the confidence of the public or warrant the
584	548		belief that the business will be operated lawfully, fairly, and
585	549		within the purposes of this chapter; or
586	550		(8) the pawnbroker has not maintained the minimum net
587	551		assets required by Section 371.072.
588		-	SECTION 38. Section 371.255, Finance Code, is amended to
	552	+	SECTION 36. Section 371.255, Finance Code, is amended to
589	553		read as follows:
590	554		Sec. 371.255. REVOCATION OR SUSPENSION OF PAWNSHOP EMPLOYEE
591	555		LICENSE. After notice and an opportunity for a hearing, the
592	556		commissioner may revoke or suspend a pawnshop employee license if
593	557		the commissioner finds that:
594	558		(1) the license holder knowingly or recklessly
595	559		violated this chapter or a rule adopted or order issued under this
596	560		chapter;
597	561		(2) a fact or condition exists that, if it had existed
598	562		or had been known to exist at the time of the original license
599	563		application, clearly would have justified refusal to issue the
600	564		license; or
601	565		(3) the moral character, business repute, and general
602	566		fitness of the license holder do not warrant belief that the license
603	567		holder will operate the business lawfully and fairly within the
604	568		provisions of this chapter.
605		-	SECTION 39. Section 393.614(a), Finance Code, is amended to
	569	+	SECTION 37. Section 393.614(a), Finance Code, is amended to
606	570		read as follows:
607	571		(a) After notice and an opportunity for a hearing the
608	572		commissioner may suspend or revoke a license if the commissioner
609	573		finds that:
610	574		(1) the license holder failed to pay the annual
611	575		license fee, an examination fee, an investigation fee, or another
612	576		charge imposed by the commissioner under this subchapter;
613	577		(2) the license holder, knowingly or without the
614	578		exercise of due care, violated this chapter or a rule adopted or
615	579		order issued under this chapter; or
616	580		(3) a fact or condition exists that, if it had existed
617	581		or had been known to exist at the time of the original application
618	582		for the license, clearly would have justified the commissioner's
619	583		denial of the application.
620		-	SECTION 40. Section 394.204(k), Finance Code, is amended to
	584	+	SECTION 38. Section 394.204(k), Finance Code, is amended to
621	585		read as follows:
622	586		(k) In addition to the power to refuse an initial
623	587		application as specified in this section, the commissioner may
624	588		suspend or revoke a provider's registration after notice and an
625	589		opportunity for a hearing if the commissioner finds that any of the
626	590		following conditions are met:
627	591		(1) a fact or condition exists that if it had existed
628	592		when the provider applied for registration would have been grounds
629	593		for denying registration;
630	594		(2) a fact or condition exists that the commissioner
631	595		was not aware of when the provider applied for registration and
632	596		would have been grounds for denying registration;
633	597		(3) the provider violates this subchapter or rule or
634	598		order of the commissioner under this subchapter;
635	599		(4) the provider is insolvent;
636	600		(5) the provider refuses to permit the commissioner to
637	601		make an examination authorized by this subchapter;
638	602		(6) the provider fails to respond within a reasonable
639	603		time and in an appropriate manner to communications from the
640	604		commissioner;
641	605		(7) the provider has received money from or on behalf
642	606		of a consumer for disbursement to a creditor under a debt management
643	607		plan that provides for regular periodic payments to creditors in
644	608		full repayment of the principal amount of the debts and the provider
645	609		has failed to disburse money to the creditor on behalf of the
646	610		consumer within a reasonable time, normally 30 days;
647	611		(8) the commissioner determines that the provider's
648	612		trust account is not materially in balance with and reconciled to
649	613		the consumer's account; or
650	614		(9) the provider fails to warrant the belief that the
651	615		business will be operated lawfully and fairly and within the
652	616		provisions and purposes of this subchapter.
653		-	SECTION 41. Section 394.212(a), Finance Code, is amended to
	617	+	SECTION 39. Section 394.212(a), Finance Code, is amended to
654	618		read as follows:
655	619		(a) A provider may not:
656	620		(1) purchase a debt or obligation of a consumer;
657	621		(2) receive or charge a fee in the form of a promissory
658	622		note or other negotiable instrument other than a check or a draft;
659	623		(3) lend money or provide credit to the consumer;
660	624		(4) obtain a mortgage or other security interest in
661	625		property owned by a consumer;
662	626		(5) engage in business with a for-profit business [an]
663	627		entity described by Section 394.204(c)(7) [394.204(c)(3)] without
664	628		prior consent of the commissioner, except that unless denied,
665	629		consent is considered granted 30 days after the date the provider
666	630		notifies the commissioner of the intent to engage in business with
667	631		the for-profit business entity [an organization] described by
668	632		Section 394.204(c)(7) [394.204(c)(3)];
669	633		(6) offer, pay, or give a gift, bonus, premium,
670	634		reward, or other compensation to a person for entering into a debt
671	635		management services agreement;
672	636		(7) represent that the provider is authorized or
673	637		competent to furnish legal advice or perform legal services unless
674	638		supervised by an attorney as required by State Bar of Texas rules;
675	639		(8) use an unconscionable means to obtain a contract
676	640		with a consumer;
677	641		(9) engage in an unfair, deceptive, or unconscionable
678	642		act or practice in connection with a service provided to a consumer;
679	643		or
680	644		(10) require or attempt to require payment of an
681	645		amount that the provider states, discloses, or advertises to be a
682	646		voluntary contribution from the consumer.
683		-	SECTION 42. Section 1956.0614(b), Occupations Code, is
	647	+	SECTION 40. Section 1956.0614(b), Occupations Code, is
684	648		amended to read as follows:
685	649		(b) If the commissioner proposes to revoke a registration,
686	650		the dealer is entitled to notice and an opportunity for a hearing
687	651		before the commissioner or a hearings officer, who shall propose a
688	652		decision to the commissioner. The commissioner or hearings
689	653		officer shall prescribe the time and place of the hearing if the
690	654		dealer makes a written request for a hearing not later than the 20th
691	655		day after the date the dealer receives the notice of the
692	656		hearing. The hearing is governed by Chapter 2001, Government Code.
693		-	SECTION 43. Sections 32.06(d-1) and (f-3), Tax Code, are
	657	+	SECTION 41. Sections 32.06(d-1) and (f-3), Tax Code, are
694	658		amended to read as follows:
695	659		(d-1) A right of rescission described by the Truth in
696	660		Lending Act (15 U.S.C. Section 1635) and Regulation Z (12 C.F.R.
697	661		Section 1026.23) [12 C.F.R. Section 226.23] applies to a transfer
698	662		under this section of a tax lien on residential property owned and
699	663		used by the property owner for personal, family, or household
700	664		purposes.
701	665		(f-3) Notwithstanding any contractual agreement with the
702	666		property owner, the transferee of a tax lien must provide the payoff
703	667		information required by this section to the greatest extent
704	668		permitted by the Gramm-Leach-Bliley Act (15 U.S.C. Section 6802)
705	669		and Regulation P (12 C.F.R. Section 1016) [15 U.S.C. Section 6802
706	670		and 12 C.F.R. Part 216]. The payoff statement must meet the
707	671		requirements of a payoff statement defined by Section 12.017,
708	672		Property Code. A transferee may charge a reasonable fee for a
709	673		payoff statement that is requested after an initial payoff
710	674		statement is provided. However, a transferee is not required to
711	675		release payoff information pursuant to a notice under Subsection
712	676		(f-1) unless the notice contains the information prescribed by the
713	677		Finance Commission of Texas.
714		-	SECTION 44. To the extent of any conflict, this Act prevails
	678	+	SECTION 42. To the extent of any conflict, this Act prevails
715	679		over another Act of the 84th Legislature, Regular Session, 2015,
716	680		relating to nonsubstantive additions to and corrections in enacted
717	681		codes.
718		-	SECTION 45. This Act takes effect September 1, 2015.
	682	+	SECTION 43. This Act takes effect September 1, 2015.