Texas 2019 - 86th Regular

Texas House Bill HB1442 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 1442
	1	+	By: Paddie, et al. (Senate Sponsor - Hall) H.B. No. 1442
	2	+	(In the Senate - Received from the House April 4, 2019;
	3	+	April 8, 2019, read first time and referred to Committee on
	4	+	Business & Commerce; April 30, 2019, reported adversely, with
	5	+	favorable Committee Substitute by the following vote: Yeas 9, Nays
	6	+	0; April 30, 2019, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 1442 By: Nichols
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the continuation and functions of the Office of
6	14		Consumer Credit Commissioner, the licensing and registration of
7	15		persons regulated by that state agency, and certain consumer
8	16		financial transactions regulated by that state agency.
9	17		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	18		SECTION 1. Section 11.305(a), Finance Code, is amended to
11	19		read as follows:
12	20		(a) The [finance commission shall instruct the] consumer
13	21		credit commissioner shall [to] establish a program to address
14	22		alternatives to high-cost lending in this state. The program shall:
15	23		(1) study and report on [the problem of] high-cost
16	24		lending, including [without limitation] the availability, quality,
17	25		and prices of financial services[, including lending and depository
18	26		services,] offered in this state to [agricultural businesses, small
19	27		businesses, and] individual consumers in this state; and
20	28		(2) evaluate alternatives to high-cost lending and the
21	29		practices of business entities in this state that provide financial
22	30		services to [agricultural businesses, small businesses, and]
23	31		individual consumers in this state[;
24	32		[(3) develop models to provide lower-cost alternatives
25	33		to assist borrowers who contract for high-cost loans; and
26	34		[(4) track the location of lenders who enter into loan
27	35		contracts providing for an interest charge authorized by Section
28	36		342.201, map the location of the lenders by senatorial district and
29	37		by any other appropriate areas, provide other demographic
30	38		information relating to the loans and the location of the lenders,
31	39		and provide information on the changes in the distribution of the
32	40		lenders from 1997 through the date of the report].
33	41		SECTION 2. Section 14.059(b), Finance Code, is amended to
34	42		read as follows:
35	43		(b) The program must require intra-agency posting of all
36	44		nonentry level positions concurrently with any [for at least 10
37	45		days before] public posting.
38	46		SECTION 3. Section 14.062, Finance Code, is amended to read
39	47		as follows:
40	48		Sec. 14.062. CONSUMER INFORMATION AND COMPLAINTS. (a) The
41	49		office shall maintain a system to promptly and efficiently act on
42	50		complaints [file on each written complaint] filed with the office.
43	51		The office shall maintain information about parties to the
44	52		complaint, the subject matter of the complaint, a summary of the
45	53		results of the review or investigation of the complaint, and its
46	54		disposition [The file must include:
47	55		[(1) the name of the person who filed the complaint;
48	56		[(2) the date the complaint is received by the office;
49	57		[(3) the subject matter of the complaint;
50	58		[(4) the name of each person contacted in relation to
51	59		the complaint;
52	60		[(5) a summary of the results of the review or
53	61		investigation of the complaint; and
54	62		[(6) an explanation of the reason the file was closed,
55	63		if the office closed the file without taking action other than to
56	64		investigate the complaint].
57	65		(b) The office shall make information available describing
58	66		its procedures for [provide to the person filing the complaint and
59	67		to each person who is a subject of the complaint a copy of the
60	68		office's policies and procedures relating to] complaint
61	69		investigation and resolution.
62	70		(c) The office[, at least quarterly until final disposition
63	71		of the complaint,] shall periodically notify the complaint parties
64	72		[person filing the complaint and each person who is a subject of the
65	73		complaint] of the status of the complaint until final disposition
66	74		[investigation unless the notice would jeopardize an undercover
67	75		investigation].
68	76		SECTION 4. Section 14.066, Finance Code, is amended to read
69	77		as follows:
70	78		Sec. 14.066. SUNSET PROVISION. The office is subject to
71	79		Chapter 325, Government Code (Texas Sunset Act). Unless continued
72	80		in existence as provided by that chapter, the office is abolished
73	81		September 1, 2031 [2019].
74	82		SECTION 5. Section 14.107(b), Finance Code, is amended to
75	83		read as follows:
76	84		(b) The finance commission by rule shall set the fees for
77	85		licensing and examination, as applicable, under Chapter 393 with
78	86		respect to a credit access business or Chapter 342, 347, 348, 351,
79	87		353, or 371 at amounts or rates necessary to recover the costs of
80	88		administering those chapters. The rules may provide that the amount
81	89		of a fee charged to a license holder is based on the volume of the
82	90		license holder's regulated business and other key factors. The
83	91		commissioner may provide for collection of a single [annual] fee
84	92		for the term of the license from a person licensed under Subchapter
85	93		G of Chapter 393 or Chapter 342, 347, 348, 351, or 371. The fee must
86	94		[to] include amounts due for both licensing and examination.
87	95		SECTION 6. Subchapter C, Chapter 14, Finance Code, is
88	96		amended by adding Sections 14.110, 14.111, and 14.112 to read as
89	97		follows:
90	98		Sec. 14.110. ALTERNATIVE RULEMAKING AND DISPUTE
91	99		RESOLUTION. (a) The finance commission by rule shall develop a
92	100		policy to encourage the use of:
93	101		(1) negotiated rulemaking procedures under Chapter
94	102		2008, Government Code, for the adoption of rules by the finance
95	103		commission applicable to the office; and
96	104		(2) appropriate alternative dispute resolution
97	105		procedures under Chapter 2009, Government Code, to assist in the
98	106		resolution of internal and external disputes under the office's
99	107		jurisdiction.
100	108		(b) The procedures applicable to the office relating to
101	109		alternative dispute resolution must conform, to the extent
102	110		possible, to any model guidelines issued by the State Office of
103	111		Administrative Hearings for the use of alternative dispute
104	112		resolution by state agencies.
105	113		(c) The office shall:
106	114		(1) coordinate the implementation of the policy
107	115		adopted under Subsection (a);
108	116		(2) provide training as needed to implement the
109	117		procedures for negotiated rulemaking or alternative dispute
110	118		resolution; and
111	119		(3) collect data concerning the effectiveness of those
112	120		procedures.
113		-	Sec. 14.111. ADVISORY COMMITTEES. (a) The commissioner ~~may~~
114		-	appoint advisory committees to assist the office and ~~commissioner~~
115		-	in performing their duties.
	121	+	Sec. 14.111. ADVISORY COMMITTEES. (a) The commissioner
	122	+	may appoint advisory committees to assist the office and
	123	+	commissioner in performing their duties.
116	124		(b) The commissioner shall specify each committee's
117	125		purpose, powers, and duties and shall require each committee to
118	126		report to the commissioner or office in the manner specified by the
119	127		commissioner concerning the committee's activities and the results
120	128		of its work.
121	129		Sec. 14.112. LICENSING AND REGISTRATION TERMS. (a) The
122	130		finance commission by rule shall prescribe the licensing or
123	131		registration period for licenses and registrations issued under
124	132		Chapters 342, 345, 347, 348, 351, 352, 353, 371, 393, and 394 of
125	133		this code and Chapter 1956, Occupations Code, not to exceed two
126	134		years.
127	135		(b) In adopting rules under Subsection (a), the finance
128	136		commission shall set terms for licenses that comply with Chapter
129	137		180 and the federal Secure and Fair Enforcement for Mortgage
130	138		Licensing Act of 2008 (Pub. L. No. 110-289).
131	139		(c) If the finance commission prescribes the term of a
132	140		license or registration under Subsection (a) for a period other
133	141		than one year, the commissioner shall prorate the applicable fee
134	142		required under a chapter specified in Subsection (a) as necessary
135	143		to reflect the term of the license or registration.
136	144		SECTION 7. Section 14.201, Finance Code, is amended to read
137	145		as follows:
138	146		Sec. 14.201. INVESTIGATION AND ENFORCEMENT AUTHORITY.
139	147		Investigative and enforcement authority under this subchapter
140	148		applies only to:
141	149		(1) this chapter;
142	150		(2) [,] Subtitles B and C, [of] Title 4;
143	151		(3) [,] Chapter 393 with respect to a credit access
144	152		business;
145	153		(4) [, and] Chapter 394; and
146	154		(5) Subchapter B, Chapter 1956, Occupations Code.
147	155		SECTION 8. Section 14.2015, Finance Code, is amended to
148	156		read as follows:
149		-	Sec. 14.2015. CONFIDENTIALITY OF CERTAIN INFORMATION. ~~(a)~~
150		-	Except as provided by Subsection (b), information or material
	157	+	Sec. 14.2015. CONFIDENTIALITY OF CERTAIN INFORMATION.
	158	+	(a) Except as provided by Subsection (b), information or material
151	159		obtained or compiled by the commissioner in relation to an
152	160		examination or investigation by the commissioner or the
153	161		commissioner's representative of a license holder, registrant,
154	162		applicant, or other person under Subtitle B or C, Title 4,
155	163		Subchapter G of Chapter 393, or Chapter 394 of this code or
156	164		Subchapter B, Chapter 1956, Occupations Code, is confidential and
157	165		may not be disclosed by the commissioner or an officer or employee
158	166		of the office [Office of Consumer Credit Commissioner], including:
159	167		(1) information obtained from a license holder,
160	168		registrant, applicant, or other person examined or investigated
161	169		under Subtitle B or C, Title 4, Subchapter G of Chapter 393, or
162	170		Chapter 394 of this code or Subchapter B, Chapter 1956, Occupations
163	171		Code;
164	172		(2) work performed by the commissioner or the
165	173		commissioner's representative on information obtained from a
166	174		license holder, registrant, applicant, or other person for the
167	175		purposes of an examination or investigation conducted under
168	176		Subtitle B or C, Title 4, Chapter 393 with respect to a credit
169	177		access business, or Chapter 394 of this code or Subchapter B,
170	178		Chapter 1956, Occupations Code;
171	179		(3) a report on an examination or investigation of a
172	180		license holder, registrant, applicant, or other person conducted
173	181		under Subtitle B or C, Title 4, Chapter 393 with respect to a credit
174	182		access business, or Chapter 394 of this code or Subchapter B,
175	183		Chapter 1956, Occupations Code; and
176	184		(4) any written communications between the license
177	185		holder, registrant, applicant, or other person, as applicable, and
178	186		the commissioner or the commissioner's representative relating to
179	187		or referencing an examination or investigation conducted under
180	188		Subtitle B or C, Title 4, Chapter 393 with respect to a credit
181	189		access business, or Chapter 394 of this code or Subchapter B,
182	190		Chapter 1956, Occupations Code.
183	191		(b) The commissioner or the commissioner's representative
184	192		may disclose the confidential information or material described by
185	193		Subsection (a):
186	194		(1) to a department, agency, or instrumentality of
187	195		this state or the United States if the commissioner considers
188	196		disclosure to be necessary or proper to the enforcement of the laws
189	197		of this state or the United States and in the best interest of the
190	198		public;
191	199		(2) if the information was previously provided to or
192	200		provided by the license holder, registrant, applicant, or other
193	201		person, and the person consents to the release of the information or
194	202		has published the information contained in the release; [or]
195	203		(3) if the commissioner determines that release of the
196	204		information is required for an administrative hearing; or
197	205		(4) to provide a summary of investigation information
198	206		to the person who filed the complaint with the office.
199	207		SECTION 9. Section 14.202, Finance Code, is amended to read
200	208		as follows:
201	209		Sec. 14.202. REQUEST FOR INFORMATION; INVESTIGATION
202	210		AUTHORITY [FAILURE TO COMPLY]. [(a)] On receipt of a written
203	211		complaint or other reasonable cause to believe that a person is
204	212		violating a statute listed by Section 14.201, the commissioner may:
205	213		(1) require the person to furnish information
206	214		regarding a specific loan, retail transaction, or business practice
207	215		to which the violation relates; and[.]
208	216		(2) [(b) If a person fails to furnish the information
209	217		requested by the commissioner, the commissioner may] conduct an
210	218		investigation to determine whether a violation exists.
211	219		SECTION 10. Sections 14.208(a) and (b), Finance Code, are
212	220		amended to read as follows:
213	221		(a) If the commissioner has reasonable cause to believe that
214	222		a person is violating a statute to which this chapter applies, the
215	223		commissioner, in addition to any other authorized action, may issue
216	224		an order to cease and desist from the violation or an order to take
217	225		affirmative action, or both, to enforce compliance. [A person may
218	226		appeal the order to the finance commission as provided by
219	227		Subsection (d) or directly to district court in accordance with
220	228		Chapter 2001, Government Code.]
221	229		(b) If a person against whom an order under this section is
222	230		made requests a hearing not later than the 30th day after the date
223	231		the order is served, the commissioner shall set and give notice of a
224	232		hearing before a hearings officer. [The hearing is governed by]
225	233		Chapter 2001, Government Code, governs the hearing and the right to
226	234		judicial review in district court. Based on the findings of fact,
227	235		conclusions of law, and recommendations of the hearings officer,
228	236		the commissioner by order may find whether a violation has
229	237		occurred.
230	238		SECTION 11. Section 14.251(b), Finance Code, is amended to
231	239		read as follows:
232	240		(b) The commissioner may order the following businesses or
233	241		other persons [a person who violates or causes a violation of this
234	242		chapter, Chapter 394, or Subtitle B, Title 4, or a rule adopted
235	243		under this chapter, Chapter 394, or Subtitle B, Title 4, or a credit
236	244		access business who violates or causes a violation of Chapter 393 or
237	245		a rule adopted under Chapter 393,] to pay [make] restitution to an
238	246		identifiable person:
239	247		(1) a person who violates or causes a violation of this
240	248		chapter, Chapter 394, or Subtitle B, Title 4, or a rule adopted
241	249		under this chapter, Chapter 394, or Subtitle B, Title 4;
242	250		(2) a credit access business who violates or causes a
243	251		violation of Chapter 393 or a rule adopted under Chapter 393; or
244	252		(3) a person who violates or causes a violation of
245	253		Subchapter B, Chapter 1956, Occupations Code, or a rule adopted
246	254		under that subchapter [injured by the violation].
247	255		SECTION 12. Section 14.256, Finance Code, is amended to
248	256		read as follows:
249	257		Sec. 14.256. ACCEPTANCE OF PENALTY; DEFAULT. If a person
250	258		accepts the determination and recommended penalty of the
251	259		commissioner or fails to make a timely written request for a
252	260		hearing, the commissioner by order shall approve the determination
253	261		and impose the recommended penalty.
254	262		SECTION 13. Section 14.257(a), Finance Code, is amended to
255	263		read as follows:
256	264		(a) If a person makes a timely written request for
257	265		[requests] a hearing [or fails to give a timely response to the
258	266		notice], the commissioner shall set a hearing and give notice of the
259	267		hearing to the person by certified mail.
260	268		SECTION 14. Section 342.005, Finance Code, is amended to
261	269		read as follows:
262	270		Sec. 342.005. APPLICABILITY OF CHAPTER. Except as provided
263	271		by Sections 302.001(d) and 342.004(c), a loan is subject to this
264	272		chapter if the loan:
265	273		(1) provides for interest in excess of 10 percent a
266	274		year;
267	275		(2) is extended primarily for personal, family, or
268	276		household use to a person who is located in this state at the time
269	277		the loan is made;
270	278		(3) is made by a person engaged in the business of
271	279		making, arranging, or negotiating those types of loans; and
272	280		(4) either:
273	281		(A) is not secured by a lien on real property; or
274	282		(B) is described by Section 342.001(4), 342.301,
275	283		or 342.456 and is predominantly payable in monthly installments.
276	284		SECTION 15. Section 342.0515(c), Finance Code, is amended
277	285		to read as follows:
278	286		(c) Subject to Section 14.112, the [The] finance commission
279	287		shall adopt rules establishing procedures for issuing, renewing,
280	288		and enforcing an individual license under this section. In adopting
281	289		rules under this subsection, the finance commission shall ensure
282	290		that:
283	291		(1) the minimum eligibility requirements for issuance
284	292		of an individual license are the same as the requirements of Section
285	293		180.055;
286	294		(2) the minimum eligibility requirements for renewal
287	295		of an individual license are the same as the requirements of Section
288	296		180.059; and
289	297		(3) the applicant pays:
290	298		(A) an investigation fee in a reasonable amount
291	299		determined by the commissioner; and
292	300		(B) a [an annual] license fee in an amount
293	301		determined as provided by Section 14.107.
294	302		SECTION 16. The heading to Section 342.053, Finance Code,
295	303		is amended to read as follows:
296	304		Sec. 342.053. AREA OF BUSINESS; LOANS BY MAIL OR ONLINE.
297	305		SECTION 17. Section 342.053(b), Finance Code, is amended to
298	306		read as follows:
299	307		(b) A lender may make, negotiate, arrange, and collect loans
300	308		by mail or online from a licensed office.
301	309		SECTION 18. Section 342.101(c), Finance Code, is amended to
302	310		read as follows:
303	311		(c) On the filing of each license application, the applicant
304	312		shall pay to the commissioner [for the license's year of issuance] a
305	313		license fee in an amount determined as provided by Section 14.107.
306	314		SECTION 19. Section 342.102(c), Finance Code, is amended to
307	315		read as follows:
308	316		(c) The bond must be conditioned on:
309	317		(1) the license holder's faithful performance under
310	318		this chapter and rules adopted under this chapter; and
311	319		(2) the payment of all amounts that become due to the
312	320		state or another person under this chapter during the period
313	321		[calendar year] for which the bond is given.
314	322		SECTION 20. Subchapter C, Chapter 342, Finance Code, is
315	323		amended by adding Section 342.106 to read as follows:
316	324		Sec. 342.106. LICENSE TERM. A license issued under this
317	325		chapter is valid for the period prescribed by finance commission
318	326		rule adopted under Section 14.112.
319	327		SECTION 21. Section 342.154, Finance Code, is amended to
320	328		read as follows:
321	329		Sec. 342.154. [ANNUAL] LICENSE FEE. Not later than 30 days
322	330		before the date the license expires [December 1], a license holder
323	331		shall pay to the commissioner for each license held a [an annual]
324	332		fee [for the year beginning the next January 1,] in an amount
325	333		determined as provided by Section 14.107.
326	334		SECTION 22. Section 342.155, Finance Code, is amended to
327	335		read as follows:
328	336		Sec. 342.155. EXPIRATION OF LICENSE ON FAILURE TO PAY
329	337		[ANNUAL] FEE. If the [annual] fee for a license is not paid before
330	338		the 16th day after the date on which the written notice of
331	339		delinquency of payment has been given to the license holder, the
332	340		license expires on [the later of:
333	341		[(1)] that day[; or
334	342		[(2) December 31 of the last year for which an annual
335	343		fee was paid].
336	344		SECTION 23. Subchapter D, Chapter 342, Finance Code, is
337	345		amended by adding Section 342.1555 to read as follows:
338	346		Sec. 342.1555. GROUNDS FOR REFUSING RENEWAL. The
339	347		commissioner may refuse to renew the license of a person who fails
340	348		to comply with an order issued by the commissioner to enforce this
341	349		chapter.
342	350		SECTION 24. Section 342.156, Finance Code, is amended to
343	351		read as follows:
344	352		Sec. 342.156. LICENSE SUSPENSION OR REVOCATION. After
345	353		notice and opportunity for a hearing, the commissioner may suspend
346	354		or revoke a license if the commissioner finds that:
347	355		(1) the license holder failed to pay the [annual]
348	356		license fee, an examination fee, an investigation fee, or another
349	357		charge imposed by the commissioner under this chapter;
350	358		(2) the license holder, knowingly or without the
351	359		exercise of due care, violated this chapter or a rule adopted or
352	360		order issued under this chapter;
353	361		(3) a fact or condition exists that, if it had existed
354	362		or had been known to exist at the time of the original application
355	363		for the license, clearly would have justified the commissioner's
356	364		denial of the application; or
357	365		(4) the license holder has failed to ensure that an
358	366		individual acting as a residential mortgage loan originator, as
359	367		defined by Section 180.002, in the making, transacting, or
360	368		negotiating of a loan subject to this chapter is licensed under this
361	369		chapter in accordance with Section 342.0515.
362	370		SECTION 25. Section 343.002, Finance Code, is amended to
363	371		read as follows:
364		-	Sec. 343.002. APPLICABILITY. (a) This chapter applies to a
365		-	loan under this chapter that is extended to a person who is ~~located~~
366		-	in this state at the time the loan is made.
	372	+	Sec. 343.002. APPLICABILITY. (a) This chapter applies to
	373	+	a loan under this chapter that is extended to a person who is
	374	+	located in this state at the time the loan is made.
367	375		(b) This chapter does not apply to:
368	376		(1) a reverse mortgage; or
369	377		(2) an open-end account, as defined by Section
370	378		301.002.
371	379		SECTION 26. Section 345.007, Finance Code, is amended by
372	380		adding Subsection (d) to read as follows:
373	381		(d) This chapter applies to a retail installment
374	382		transaction extended to a person who is located in this state at the
375	383		time the transaction is entered into.
376	384		SECTION 27. Section 345.157(d), Finance Code, is amended to
377	385		read as follows:
378	386		(d) The holder shall remit 50 cents of each delinquency
379	387		charge in excess of $10 collected under this section to the
380	388		comptroller, in the time and manner established by the comptroller,
381	389		for deposit to the credit of an account in the general revenue fund.
382	390		One-half of the money in the account may be appropriated only to
383	391		finance research conducted by the commissioner [finance
384	392		commission] under Section 11.305 and the other one-half of the
385	393		money in the account may be appropriated only to finance
386	394		educational activities and counseling services under Section
387	395		394.001.
388	396		SECTION 28. Section 345.351, Finance Code, is amended to
389	397		read as follows:
390	398		Sec. 345.351. REGISTRATION OF HOLDER. (a) A holder who is
391	399		not an authorized lender under Chapter 342 or a credit union shall:
392	400		(1) register with the Office of Consumer Credit
393	401		Commissioner; and
394	402		(2) pay a [an annual] fee of $10 for each location at
395	403		which a retail installment transaction is originated, serviced, or
396	404		collected.
397	405		(b) Subject to Section 14.112, the [The] finance commission
398	406		by rule may establish procedures to facilitate the registration and
399	407		collection of fees under this section[, including rules staggering
400	408		throughout the year the dates on which fees are due].
401	409		(c) A registration issued under this section is valid for
402	410		the period prescribed by finance commission rule adopted under
403	411		Section 14.112.
404	412		(d) The commissioner may refuse to renew the registration of
405	413		a holder who fails to comply with an order issued by the
406	414		commissioner to enforce this chapter.
407	415		SECTION 29. Section 346.004(a), Finance Code, is amended to
408	416		read as follows:
409	417		(a) Unless the contract for the account provides otherwise,
410	418		this chapter applies to a revolving credit account described by
411	419		Section 346.003 if the loan or extension of credit is extended
412	420		primarily for personal, family, or household use to a person who is
413	421		located in this state at the time the loan is made or the extension
414	422		of credit is entered into.
415	423		SECTION 30. Subchapter A, Chapter 347, Finance Code, is
416	424		amended by adding Section 347.008 to read as follows:
417	425		Sec. 347.008. APPLICABILITY. Each credit transaction
418	426		extended to a person who is located in this state at the time the
419	427		transaction is entered into is subject to this chapter.
420	428		SECTION 31. Section 347.451, Finance Code, is amended by
421	429		amending Subsections (a), (b), and (d) and adding Subsections (a-1)
422	430		and (e) to read as follows:
423	431		(a) A creditor who is not an authorized lender under Chapter
424	432		342 or a credit union shall:
425	433		(1) register with the Office of Consumer Credit
426	434		Commissioner; and
427	435		(2) pay a [an annual] fee of $15 for each location at
428	436		which a credit transaction is originated, serviced, or collected.
429	437		(a-1) A registration issued under this section is valid for
430	438		the period prescribed by finance commission rule adopted under
431	439		Section 14.112.
432	440		(b) Subject to Section 14.112, the [The] finance commission
433	441		by rule may establish procedures to facilitate the registration and
434	442		collection of fees under this section[, including rules staggering
435	443		the due dates of the fees throughout the year].
436	444		(d) A creditor shall file the registration renewal and pay
437	445		the [annual] registration fee to the commissioner not later than
438	446		the 30th day after the date on which the creditor receives the
439	447		notice under Subsection (c).
440	448		(e) The commissioner may refuse to renew the registration of
441	449		a creditor who fails to comply with an order issued by the
442	450		commissioner to enforce this chapter.
443	451		SECTION 32. Section 347.4515, Finance Code, is amended by
444	452		adding Subsections (a-1) and (e) and amending Subsection (c) to
445	453		read as follows:
446	454		(a-1) A license issued under this section is valid for the
447	455		period prescribed by finance commission rule adopted under Section
448	456		14.112.
449	457		(c) Subject to Section 14.112, the [The] finance commission
450	458		shall adopt rules establishing procedures for issuing, renewing,
451	459		and enforcing an individual license under this section. In adopting
452	460		rules under this subsection, the finance commission shall ensure
453	461		that:
454	462		(1) the minimum eligibility requirements for issuance
455	463		of an individual license are the same as the requirements of Section
456	464		180.055;
457	465		(2) the minimum eligibility requirements for renewal
458	466		of an individual license are the same as the requirements of Section
459	467		180.059; and
460	468		(3) the applicant pays:
461	469		(A) an investigation fee in a reasonable amount
462	470		determined by the commissioner; and
463	471		(B) a [an annual] license fee in an amount
464	472		determined as provided by Section 14.107.
465	473		(e) The commissioner may refuse to renew the license of an
466	474		individual described by Subsection (b) who fails to comply with an
467	475		order issued by the commissioner to enforce this chapter.
468	476		SECTION 33. Section 348.007(a), Finance Code, is amended to
469	477		read as follows:
470	478		(a) Except as otherwise provided by this section, each
471	479		retail installment transaction extended to a person who is located
472	480		in this state at the time the transaction is entered into is subject
473	481		to this chapter.
474	482		SECTION 34. Section 348.5015(c), Finance Code, is amended
475	483		to read as follows:
476	484		(c) Subject to Section 14.112, the [The] finance commission
477	485		shall adopt rules establishing procedures for applying for issuing,
478	486		renewing, and enforcing a license under this section. In adopting
479	487		rules under this subsection, the finance commission shall ensure
480	488		that:
481	489		(1) the minimum eligibility requirements for issuance
482	490		of a license are the same as the requirements of Section 180.055;
483	491		(2) the minimum eligibility requirements for renewal
484	492		of a license are the same as the requirements of Section 180.059;
485	493		and
486	494		(3) the applicant pays:
487	495		(A) an investigation fee in a reasonable amount
488	496		determined by the commissioner; and
489	497		(B) a [an annual] license fee in an amount
490	498		determined as provided by Section 14.107.
491	499		SECTION 35. Section 348.502(b), Finance Code, is amended to
492	500		read as follows:
493	501		(b) On the filing of a license application, the applicant
494	502		shall pay to the commissioner:
495	503		(1) an investigation fee not to exceed $200; and
496	504		(2) [for the license's year of issuance,] a license fee
497	505		in an amount determined as provided by Section 14.107.
498	506		SECTION 36. Subchapter F, Chapter 348, Finance Code, is
499	507		amended by adding Section 348.5055 to read as follows:
500	508		Sec. 348.5055. LICENSE TERM. A license issued under this
501	509		chapter is valid for the period prescribed by finance commission
502	510		rule adopted under Section 14.112.
503	511		SECTION 37. Section 348.506, Finance Code, is amended to
504	512		read as follows:
505	513		Sec. 348.506. [ANNUAL] LICENSE FEE. Not later than the 30th
506	514		day before the date the license expires [December 1], a license
507	515		holder shall pay to the commissioner for each license held a [an
508	516		annual] fee [for the year beginning the next January 1,] in an
509	517		amount determined as provided by Section 14.107.
510	518		SECTION 38. Subchapter F, Chapter 348, Finance Code, is
511	519		amended by adding Section 348.5065 to read as follows:
512	520		Sec. 348.5065. GROUNDS FOR REFUSAL TO RENEW. The
513	521		commissioner may refuse to renew the license of a person who fails
514	522		to comply with an order issued by the commissioner to enforce this
515	523		chapter.
516	524		SECTION 39. Section 348.507, Finance Code, is amended to
517	525		read as follows:
518	526		Sec. 348.507. EXPIRATION OF LICENSE ON FAILURE TO PAY
519	527		[ANNUAL] FEE. If the [annual] fee for a license is not paid before
520	528		the 16th day after the date on which the written notice of
521	529		delinquency of payment has been given to the license holder, the
522	530		license expires on [the later of:
523	531		[(1)] that day[; or
524	532		[(2) December 31 of the last year for which an annual
525	533		fee was paid].
526	534		SECTION 40. Section 348.508, Finance Code, is amended to
527	535		read as follows:
528	536		Sec. 348.508. LICENSE SUSPENSION OR REVOCATION. After
529	537		notice and opportunity for a hearing, the commissioner may suspend
530	538		or revoke a license if the commissioner finds that:
531	539		(1) the license holder failed to pay the [annual]
532	540		license fee, an examination fee, an investigation fee, or another
533	541		charge imposed by the commissioner;
534	542		(2) the license holder, knowingly or without the
535	543		exercise of due care, violated this chapter or a rule adopted or
536	544		order issued under this chapter; or
537	545		(3) a fact or condition exists that, if it had existed
538	546		or had been known to exist at the time of the original application
539	547		for the license, clearly would have justified the commissioner's
540	548		denial of the application.
541	549		SECTION 41. Section 349.301, Finance Code, is amended to
542	550		read as follows:
543	551		Sec. 349.301. PAYMENT OF FEES. A person who registers or
544	552		obtains or renews a license under this title after the date on which
545	553		the person was required to register or to obtain or renew the
546	554		license may limit the person's liability as provided by this
547	555		subchapter by paying to the commissioner:
548	556		(1) all prior registration or license fees that the
549	557		person should have paid under this title [for prior years]; and
550	558		(2) except as provided by Section 349.302(a), a late
551	559		filing fee as provided by this subchapter.
552	560		SECTION 42. Subchapter A, Chapter 351, Finance Code, is
553	561		amended by adding Section 351.012 to read as follows:
554	562		Sec. 351.012. APPLICABILITY OF CHAPTER. This chapter
555	563		applies to a property tax loan that is extended to a person for
556	564		payment of property taxes on real property located in this state.
557	565		SECTION 43. Section 351.0515(c), Finance Code, is amended
558	566		to read as follows:
559	567		(c) Subject to Section 14.112, the [The] finance commission
560	568		shall adopt rules establishing procedures for issuing, renewing,
561	569		and enforcing an individual license under this section. In adopting
562	570		rules under this subsection, the finance commission shall ensure
563	571		that:
564	572		(1) the minimum eligibility requirements for issuance
565	573		of an individual license are the same as the requirements of Section
566	574		180.055;
567	575		(2) the minimum eligibility requirements for renewal
568	576		of an individual license are the same as the requirements of Section
569	577		180.059; and
570	578		(3) the applicant pays:
571	579		(A) an investigation fee in a reasonable amount
572	580		determined by the commissioner; and
573	581		(B) a [an annual] license fee in an amount
574	582		determined as provided by Section 14.107.
575	583		SECTION 44. The heading to Section 351.053, Finance Code,
576	584		is amended to read as follows:
577	585		Sec. 351.053. AREA OF BUSINESS; PROPERTY TAX LOANS BY MAIL
578	586		OR ONLINE.
579	587		SECTION 45. Section 351.053(b), Finance Code, is amended to
580	588		read as follows:
581	589		(b) A property tax lender may make, negotiate, arrange, and
582	590		collect property tax loans by mail or online from a licensed office.
583	591		SECTION 46. Section 351.101(c), Finance Code, is amended to
584	592		read as follows:
585	593		(c) On the filing of each license application, the applicant
586	594		shall pay to the commissioner [for the license's year of issuance] a
587	595		license fee in an amount determined as provided by Section 14.107.
588	596		SECTION 47. Section 351.102(c), Finance Code, is amended to
589	597		read as follows:
590	598		(c) The bond must be conditioned on:
591	599		(1) the license holder's faithful performance under
592	600		this chapter and rules adopted under this chapter; and
593	601		(2) the payment of all amounts that become due to the
594	602		state or another person under this chapter during the period
595	603		[calendar year] for which the bond is given.
596	604		SECTION 48. Subchapter C, Chapter 351, Finance Code, is
597	605		amended by adding Section 351.106 to read as follows:
598	606		Sec. 351.106. LICENSE TERM. A license issued under this
599	607		chapter is valid for the period prescribed by finance commission
600	608		rule adopted under Section 14.112.
601	609		SECTION 49. Subchapter D, Chapter 351, Finance Code, is
602	610		amended by adding Section 351.1535 to read as follows:
603	611		Sec. 351.1535. GROUNDS FOR REFUSAL TO RENEW. The
604	612		commissioner may refuse to renew the license of a person who fails
605	613		to comply with an order issued by the commissioner to enforce this
606	614		chapter.
607	615		SECTION 50. Section 351.154, Finance Code, is amended to
608	616		read as follows:
609	617		Sec. 351.154. [ANNUAL] LICENSE FEE. Not later than the 30th
610	618		day before the date the license expires [December 1], a license
611	619		holder shall pay to the commissioner for each license held a [an
612	620		annual] fee [for the year beginning the next January 1,] in an
613	621		amount determined as provided by Section 14.107.
614	622		SECTION 51. Section 351.155, Finance Code, is amended to
615	623		read as follows:
616	624		Sec. 351.155. EXPIRATION OF LICENSE ON FAILURE TO PAY
617	625		[ANNUAL] FEE. If the [annual] fee for a license is not paid before
618	626		the 16th day after the date on which the written notice of
619	627		delinquency of payment has been given to the license holder, the
620	628		license expires on [the later of:
621	629		[(1)] that day[; or
622	630		[(2) December 31 of the last year for which an annual
623	631		fee was paid].
624	632		SECTION 52. Section 351.156, Finance Code, is amended to
625	633		read as follows:
626	634		Sec. 351.156. LICENSE SUSPENSION OR REVOCATION. After
627	635		notice and opportunity for a hearing, the commissioner may suspend
628	636		or revoke a license if the commissioner finds that:
629	637		(1) the license holder failed to pay the [annual]
630	638		license fee, an examination fee, an investigation fee, or another
631	639		charge imposed by the commissioner under this chapter;
632	640		(2) the license holder, knowingly or without the
633	641		exercise of due care, violated this chapter or Section 32.06 or
634	642		32.065, Tax Code, or a rule adopted or an order issued under this
635	643		chapter or Section 32.06 or 32.065, Tax Code;
636	644		(3) a fact or condition exists that, if it had existed
637	645		or had been known to exist at the time of the original application
638	646		for the license, clearly would have justified the commissioner's
639	647		denial of the application; or
640	648		(4) the license holder has failed to ensure that an
641	649		individual acting as a residential mortgage loan originator, as
642	650		defined by Section 180.002, in the making, transacting, or
643	651		negotiating of a property tax loan for a principal dwelling is
644	652		licensed under this chapter in accordance with Section 351.0515.
645	653		SECTION 53. Section 352.003, Finance Code, is amended by
646	654		amending Subsections (a) and (c) and adding Subsections (a-1),
647	655		(c-1), and (f) to read as follows:
648	656		(a) To register as a facilitator, a person must provide to
649	657		the commissioner[, on or before December 31 preceding each calendar
650	658		year in which the person seeks to act as a facilitator]:
651	659		(1) a list of each location in this state at which
652	660		e-file providers authorized by the Internal Revenue Service file
653	661		tax returns on behalf of borrowers for whom the facilitator acts to
654	662		allow the making of a refund anticipation loan; and
655	663		(2) a processing fee for each location included on the
656	664		list furnished under Subdivision (1).
657	665		(a-1) A registration issued under this section is valid for
658	666		the period prescribed by finance commission rule adopted under
659	667		Section 14.112.
660	668		(c) The finance commission by rule shall establish a
661	669		deadline for the submission of the information and fee required by
662	670		Subsection (a) for initial issuance and renewal of registrations
663	671		under this section.
664	672		(c-1) After the applicable [December 31] deadline for
665	673		initial or renewal registrations, a facilitator may amend the
666	674		registration required under Subsection (a) to reflect any change in
667	675		the information provided by the registration.
668	676		(f) The commissioner may refuse to renew the registration of
669	677		a person who fails to comply with an order issued by the
670	678		commissioner to enforce this chapter.
671	679		SECTION 54. Section 352.006(b), Finance Code, is amended to
672	680		read as follows:
673	681		(b) If the commissioner proposes to revoke a registration,
674	682		the facilitator is entitled to notice and an opportunity for a
675	683		hearing before the commissioner or a hearings officer, who shall
676	684		propose a decision to the commissioner. The commissioner or
677	685		hearings officer shall prescribe the time and place of the hearing
678	686		if the facilitator makes a written request for a hearing not later
679	687		than the 20th day after the date the facilitator receives the notice
680	688		of the proposed revocation. The hearing is governed by Chapter
681	689		2001, Government Code.
682	690		SECTION 55. Chapter 352, Finance Code, is amended by adding
683	691		Section 352.009 to read as follows:
684	692		Sec. 352.009. APPLICABILITY OF CHAPTER. This chapter
685	693		applies to a refund anticipation loan that is extended to a person
686	694		who is located in this state at the time the loan is made.
687	695		SECTION 56. Section 353.502(b), Finance Code, is amended to
688	696		read as follows:
689	697		(b) On the filing of a license application, the applicant
690	698		shall pay to the commissioner:
691	699		(1) an investigation fee not to exceed $200; and
692	700		(2) [for the license's year of issuance,] a license fee
693	701		in an amount determined as provided by Section 14.107.
694	702		SECTION 57. Subchapter F, Chapter 353, Finance Code, is
695	703		amended by adding Section 353.5055 to read as follows:
696	704		Sec. 353.5055. LICENSE TERM. A license issued under this
697	705		chapter is valid for the period prescribed by finance commission
698	706		rule adopted under Section 14.112.
699	707		SECTION 58. Section 353.506, Finance Code, is amended to
700	708		read as follows:
701	709		Sec. 353.506. [ANNUAL] LICENSE FEE. Not later than the 30th
702	710		day before the date the license expires [December 1], a license
703	711		holder shall pay to the commissioner for each license held a [an
704	712		annual] fee [for the year beginning the next January 1,] in an
705	713		amount determined as provided by Section 14.107.
706	714		SECTION 59. Subchapter F, Chapter 353, Finance Code, is
707	715		amended by adding Section 353.5065 to read as follows:
708	716		Sec. 353.5065. GROUNDS FOR REFUSAL OF RENEWAL. The
709	717		commissioner may refuse to renew the license of a person who fails
710	718		to comply with an order issued by the commissioner to enforce this
711	719		chapter.
712	720		SECTION 60. Section 353.507, Finance Code, is amended to
713	721		read as follows:
714	722		Sec. 353.507. EXPIRATION OF LICENSE ON FAILURE TO PAY
715	723		[ANNUAL] FEE. If the [annual] fee for a license is not paid before
716	724		the 16th day after the date on which the written notice of
717	725		delinquency of payment has been given to the license holder, the
718	726		license expires on [the later of:
719	727		[(1)] that day[; or
720	728		[(2) December 31 of the last year for which an annual
721	729		fee was paid].
722	730		SECTION 61. Section 353.508, Finance Code, is amended to
723	731		read as follows:
724	732		Sec. 353.508. LICENSE SUSPENSION OR REVOCATION. After
725	733		notice and opportunity for a hearing, the commissioner may suspend
726	734		or revoke a license if the commissioner finds that:
727	735		(1) the license holder failed to pay the [annual]
728	736		license fee, an investigation fee, or another charge imposed by the
729	737		commissioner;
730	738		(2) the license holder, knowingly or without the
731	739		exercise of due care, violated this chapter or a rule adopted or
732	740		order issued under this chapter; or
733	741		(3) a fact or condition exists that, if it had existed
734	742		or had been known to exist at the time of the original application
735	743		for the license, clearly would have justified the commissioner's
736	744		denial of the application.
737	745		SECTION 62. Section 354.005(d), Finance Code, is amended to
738	746		read as follows:
739	747		(d) The commissioner may deny approval of a form only if the
740	748		form excludes the language required by Sections 354.003 and 354.004
741	749		or contains any inconsistent or misleading provisions. All form
742	750		denials, after an opportunity for a hearing under Chapter 2001,
743	751		Government Code, may be appealed to a district court in accordance
744	752		with that chapter [the finance commission].
745	753		SECTION 63. Section 371.002, Finance Code, is amended to
746	754		read as follows:
747	755		Sec. 371.002. PURPOSES. The purposes of this chapter are
748	756		to:
749	757		(1) prevent fraud, unfair practices, discrimination,
750	758		imposition, and abuse of state residents;
751	759		(2) exercise the state's police power to ensure a sound
752	760		system of making pawn loans and transfers of personal property by
753	761		and through pawnshops;
754	762		(3) prevent transactions in stolen property and other
755	763		unlawful property transactions by licensing and regulating
756	764		pawnbrokers [and pawnshop employees];
757	765		(4) provide for licensing and investigation fees;
758	766		(5) provide minimum capital requirements for
759	767		pawnbrokers;
760	768		(6) ensure financial responsibility to the state and
761	769		its residents and compliance with federal, state, and local law,
762	770		including rules and ordinances; and
763	771		(7) assist local governments in the exercise of their
764	772		police power.
765	773		SECTION 64. Section 371.003(8), Finance Code, is amended to
766	774		read as follows:
767	775		(8) "Pawn transaction" means the pledging, by a person
768	776		present in this state at the time of the transaction, with a
769	777		pawnbroker of a single item of goods as security for a loan of
770	778		money.
771	779		SECTION 65. Section 371.052(a), Finance Code, is amended to
772	780		read as follows:
773	781		(a) To be eligible for a pawnshop license, an applicant
774	782		must:
775	783		(1) [be of good moral character;
776	784		[(2)] meet the net assets requirement of Section
777	785		371.072; and
778	786		(2) [(3)] show that:
779	787		(A) the pawnshop will be operated lawfully and
780	788		fairly under this chapter; and
781	789		(B) the applicant or the applicant's owners and
782	790		managers have the financial responsibility, experience, character,
783	791		and general fitness to command the confidence of the public in the
784	792		pawnshop's operations.
785	793		SECTION 66. Section 371.055, Finance Code, is amended to
786	794		read as follows:
787	795		Sec. 371.055. FEES; PROOF OF INSURANCE. An applicant must
788	796		submit with the application:
789	797		(1) an investigation fee of:
790	798		(A) $500 if the applicant does not hold a
791	799		license; or
792	800		(B) $250 if the application:
793	801		(i) is for an additional license for a
794	802		separate location; or
795	803		(ii) involves substantially identical
796	804		principals and owners of a licensed pawnshop at a separate
797	805		location;
798	806		(2) a [an annual] fee in an amount determined as
799	807		provided by Section 14.107; and
800	808		(3) proof of general liability and fire insurance in a
801	809		reasonable amount and form required by the commissioner.
802	810		SECTION 67. Section 371.062, Finance Code, is amended to
803	811		read as follows:
804	812		Sec. 371.062. DISPOSITION OF FEES ON DENIAL OF APPLICATION.
805	813		If the commissioner denies the application, the commissioner shall
806	814		retain the investigation fee and shall return to the applicant the
807	815		[annual] license fee submitted with the application.
808	816		SECTION 68. Subchapter B, Chapter 371, Finance Code, is
809	817		amended by adding Section 371.0625 to read as follows:
810	818		Sec. 371.0625. LICENSE TERM. A license issued under this
811	819		subchapter is valid for the period prescribed by finance commission
812	820		rule adopted under Section 14.112.
813	821		SECTION 69. Section 371.064, Finance Code, is amended to
814	822		read as follows:
815	823		Sec. 371.064. [ANNUAL] LICENSE FEE; EXPIRATION. (a) Not
816	824		later than the 30th day before the date the license expires
817	825		[December 1], a pawnbroker shall pay to the commissioner for each
818	826		license held a [an annual] fee in an amount determined as provided
819	827		by Section 14.107 [for the year beginning the next January 1].
820	828		(b) If the [annual] fee for a license is not paid before the
821	829		16th day after the date on which written notice of delinquency of
822	830		payment has been given to the pawnbroker by the commissioner, the
823	831		license expires on [the later of:
824	832		[(1)] that day[; or
825	833		[(2) December 31 of the last year for which an annual
826	834		fee was paid].
827	835		SECTION 70. Subchapter B, Chapter 371, Finance Code, is
828	836		amended by adding Section 371.0645 to read as follows:
829	837		Sec. 371.0645. GROUNDS FOR REFUSAL TO RENEW. The
830	838		commissioner may refuse to renew the license of a person who fails
831	839		to comply with an order issued by the commissioner to enforce this
832	840		chapter.
833	841		SECTION 71. Subchapter B, Chapter 371, Finance Code, is
834	842		amended by adding Section 371.074 to read as follows:
835	843		Sec. 371.074. PAWNBROKER RESPONSIBLE FOR EMPLOYEES AND
836	844		AGENTS. A license holder under this subchapter is responsible for
837	845		all acts of the license holder's officers, directors, employees,
838	846		and agents acting on behalf of the pawnshop.
839	847		SECTION 72. The heading to Subchapter C, Chapter 371,
840	848		Finance Code, is amended to read as follows:
841	849		SUBCHAPTER C. PAWNSHOP EMPLOYEE LICENSE PROGRAM
842	850		SECTION 73. Section 371.101, Finance Code, is amended to
843	851		read as follows:
844	852		Sec. 371.101. PAWNSHOP EMPLOYEE LICENSE PROGRAM
845	853		[REQUIRED]. (a) A pawnbroker may, but is not required to,
846	854		participate in the pawnshop employee license program by notifying
847	855		the commissioner in writing on a form prescribed by the
848	856		commissioner.
849	857		(a-1) A pawnbroker may submit a written notification to
850	858		participate in the pawnshop employee license program under
851	859		Subsection (a):
852	860		(1) at the time of the pawnbroker's original license
853	861		application;
854	862		(2) at the time of a renewal of the pawnbroker's
855	863		license; or
856	864		(3) at another time prescribed by the commissioner.
857	865		(a-2) A pawnbroker may notify the commissioner in writing of
858	866		the pawnbroker's intention to no longer participate in the pawnshop
859	867		employee license program at any time notification is permitted
860	868		under Subsection (a-1). On receipt by the commissioner of a
861	869		pawnbroker's notification under this subsection, the pawnbroker
862	870		will no longer be a part of the pawnshop employee license program
863	871		unless the pawnbroker resubmits a new notification for
864	872		participation under Subsection (a-1).
865	873		(b) An individual who begins employment at a pawnshop for a
866	874		pawnbroker that participates in the pawnshop employee license
867	875		program under Subsection (a), as a condition of employment, must
868	876		apply to the commissioner for a pawnshop employee license not later
869	877		than the 75th day after the date employment begins.
870	878		[(b)] The individual may continue employment until the
871	879		license is issued or denied.
872	880		(c) If a pawnbroker participates in the pawnshop employee
873	881		license program under Subsection (a), the participating [A]
874	882		pawnbroker may not employ an individual to write a pawn
875	883		transaction, buy or sell merchandise, or supervise another employee
876	884		who writes pawn transactions or buys or sells merchandise unless
877	885		the individual:
878	886		(1) has complied with Subsection (b) [(a)] but has not
879	887		been issued or denied a license; or
880	888		(2) holds a pawnshop employee license.
881	889		(d) Subsection (c) does not apply to an individual who:
882	890		(1) has an ownership interest in the pawnshop license;
883	891		and
884	892		(2) is named on the application.
885	893		(e) Subject to Section 14.112, the Finance Commission of
886	894		Texas shall adopt rules to administer the pawnshop employee license
887	895		program.
888	896		SECTION 74. Section 371.102(a), Finance Code, is amended to
889	897		read as follows:
890	898		(a) To be eligible for a pawnshop employee license, an
891	899		individual must:
892	900		(1) be of [good moral character and] good business
893	901		repute; [and]
894	902		(2) possess the character and general fitness
895	903		necessary to warrant belief that the individual will operate the
896	904		business lawfully and fairly under this chapter; and
897	905		(3) be employed by a pawnbroker that participates in
898	906		the pawnshop employee license program under Section 371.101.
899	907		SECTION 75. Section 371.103(b), Finance Code, is amended to
900	908		read as follows:
901	909		(b) The application must be accompanied by an investigation
902	910		and annual fee in an amount determined as provided by Section 14.107
903	911		[of $25].
904	912		SECTION 76. Section 371.105, Finance Code, is amended to
905	913		read as follows:
906	914		Sec. 371.105. LICENSE TERM. A pawnshop employee license is
907	915		valid for the period prescribed by finance commission rule adopted
908	916		under Section 14.112 [effective until the license expires or is
909	917		surrendered, suspended, or revoked].
910	918		SECTION 77. Section 371.106, Finance Code, is amended to
911	919		read as follows:
912	920		Sec. 371.106. [ANNUAL] LICENSE FEE; EXPIRATION. (a) Not
913	921		later than the 30th day before the date the license expires
914	922		[December 1], a pawnshop employee license holder shall pay to the
915	923		commissioner a [an annual] fee in an amount determined as provided
916	924		by Section 14.107 [of $15 for the year beginning the next January
917	925		1].
918	926		(b) The commissioner shall send written notice of
919	927		delinquency to a license holder who does not pay the fee on or
920	928		before the 30th day before the date the license expires [December
921	929		1].
922	930		(c) If the [annual] fee for a license is not paid before the
923	931		16th day after the date of the delinquency notice, the license
924	932		expires on [the later of:]
925	933		[(1)] that day[; or
926	934		[(2) January 1 of the first year for which the annual
927	935		fee was not paid].
928	936		(d) A pawnshop employee license expires on the 30th day
929	937		after the last day of employment if the license holder:
930	938		(1) ceases to be employed by a pawnbroker that
931	939		participates in the pawnshop employee license program under Section
932	940		371.101; and
933	941		(2) is not employed within that time by another
934	942		pawnbroker that participates in the pawnshop employee license
935	943		program.
936	944		SECTION 78. Subchapter C, Chapter 371, Finance Code, is
937	945		amended by adding Section 371.107 to read as follows:
938	946		Sec. 371.107. GROUNDS FOR REFUSAL TO RENEW. The
939	947		commissioner may refuse to renew the pawnshop employee license of a
940	948		person who fails to comply with an order issued by the commissioner
941	949		to enforce this chapter.
942	950		SECTION 79. Section 371.251(a), Finance Code, is amended to
943	951		read as follows:
944	952		(a) After notice and opportunity for a hearing, the
945	953		commissioner may revoke or suspend a pawnshop license if the
946	954		commissioner finds that:
947	955		(1) the pawnbroker has not paid a fee or charge imposed
948	956		by the commissioner under this chapter;
949	957		(2) the pawnbroker, knowingly or without exercising
950	958		due care to prevent the violation, has violated this chapter or a
951	959		rule adopted or an order issued under this chapter;
952	960		(3) a fact or condition exists that, if it had existed
953	961		or had been known to exist at the time of the original license
954	962		application, clearly would have justified refusal to issue the
955	963		license;
956	964		(4) the pawnbroker has established an association with
957	965		an unlicensed person who, with the knowledge of the pawnbroker, has
958	966		violated this chapter;
959	967		(5) the pawnbroker has aided or conspired with a
960	968		person to circumvent this chapter;
961	969		(6) the pawnbroker or a legal or beneficial owner of
962	970		the pawnbroker [is not of good moral character or] has been
963	971		convicted of a crime that the commissioner finds directly relates
964	972		to the duties and responsibilities of the occupation of pawnbroker
965	973		or would otherwise make the person unfit for a pawnshop license
966	974		under Section 371.052;
967	975		(7) the financial responsibility, experience,
968	976		character, or general fitness of the pawnbroker or its owners and
969	977		managers do not command the confidence of the public or warrant the
970	978		belief that the business will be operated lawfully, fairly, and
971	979		within the purposes of this chapter; or
972	980		(8) the pawnbroker has not maintained the minimum net
973	981		assets required by Section 371.072.
974	982		SECTION 80. Section 371.255, Finance Code, is amended to
975	983		read as follows:
976	984		Sec. 371.255. REVOCATION OR SUSPENSION OF PAWNSHOP EMPLOYEE
977	985		LICENSE. After notice and hearing, the commissioner may revoke or
978	986		suspend a pawnshop employee license if the commissioner finds that:
979	987		(1) the license holder knowingly or recklessly
980	988		violated this chapter or a rule adopted or order issued under this
981	989		chapter;
982	990		(2) a fact or condition exists that, if it had existed
983	991		or had been known to exist at the time of the original license
984	992		application, clearly would have justified refusal to issue the
985	993		license; or
986	994		(3) the [moral character,] business repute[,] and
987	995		general fitness of the license holder do not warrant belief that the
988	996		license holder will operate the business lawfully and fairly within
989	997		the provisions of this chapter.
990	998		SECTION 81. Section 371.258(c), Finance Code, is amended to
991	999		read as follows:
992	1000		(c) The commissioner shall reinstate an expired pawnbroker
993	1001		license if, not later than the 180th day after the date on which the
994	1002		license expired, the pawnbroker pays the commissioner the
995	1003		delinquent $125 [annual] fee plus a reinstatement fee of $1,000.
996	1004		After a pawnbroker's license has expired, the commissioner shall
997	1005		promptly send notice of reinstatement rights to the delinquent
998	1006		pawnbroker by certified mail.
999	1007		SECTION 82. Section 393.602(a), Finance Code, is amended to
1000	1008		read as follows:
1001	1009		(a) This subchapter applies only to a credit services
1002	1010		organization that, with respect to a consumer who is located in this
1003	1011		state at the time of the transaction, obtains for a consumer or
1004	1012		assists a consumer in obtaining an extension of consumer credit in
1005	1013		the form of:
1006	1014		(1) a deferred presentment transaction; or
1007	1015		(2) a motor vehicle title loan.
1008	1016		SECTION 83. Section 393.604(c), Finance Code, is amended to
1009	1017		read as follows:
1010	1018		(c) On the filing of each license application, the applicant
1011	1019		shall pay to the commissioner [for the license's year of issuance] a
1012	1020		license fee in an amount determined as provided by Section 14.107.
1013	1021		SECTION 84. Section 393.605(c), Finance Code, is amended to
1014	1022		read as follows:
1015	1023		(c) The bond must be conditioned on:
1016	1024		(1) the license holder's faithful performance under
1017	1025		this subchapter and rules adopted under this subchapter; and
1018	1026		(2) the payment of all amounts that become due to this
1019	1027		state or another person under this subchapter during the period
1020	1028		[calendar year] for which the bond is given.
1021	1029		SECTION 85. Subchapter G, Chapter 393, Finance Code, is
1022	1030		amended by adding Sections 393.6085 and 393.6115 to read as
1023	1031		follows:
1024	1032		Sec. 393.6085. LICENSE TERM. A license issued under this
1025	1033		chapter is valid for the period prescribed by finance commission
1026	1034		rule adopted under Section 14.112.
1027	1035		Sec. 393.6115. GROUNDS FOR REFUSAL TO RENEW. The
1028	1036		commissioner may refuse to renew the license of a credit access
1029	1037		business who fails to comply with an order issued by the
1030	1038		commissioner to enforce this chapter.
1031	1039		SECTION 86. Section 393.612, Finance Code, is amended to
1032	1040		read as follows:
1033	1041		Sec. 393.612. [ANNUAL] LICENSE FEE. Not later than the 30th
1034	1042		day before the date the license expires [December 1], a license
1035	1043		holder shall pay to the commissioner for each license held a [an
1036	1044		annual] fee [for the year beginning the next January 1,] in an
1037	1045		amount determined as provided by Section 14.107.
1038	1046		SECTION 87. Section 393.613, Finance Code, is amended to
1039	1047		read as follows:
1040	1048		Sec. 393.613. EXPIRATION OF LICENSE ON FAILURE TO PAY
1041	1049		[ANNUAL] FEE. If the [annual] fee for a license is not paid before
1042	1050		the 16th day after the date on which the written notice of
1043	1051		delinquency of payment has been given to the license holder, the
1044	1052		license expires on [the later of:
1045	1053		[(1)] that day[; or
1046	1054		[(2) December 31 of the last year for which an annual
1047	1055		fee was paid].
1048	1056		SECTION 88. Section 393.614(a), Finance Code, is amended to
1049	1057		read as follows:
1050	1058		(a) After notice and opportunity for a hearing, the
1051	1059		commissioner may suspend or revoke a license if the commissioner
1052	1060		finds that:
1053	1061		(1) the license holder failed to pay the [annual]
1054	1062		license fee, an examination fee, an investigation fee, or another
1055	1063		charge imposed by the commissioner under this subchapter;
1056	1064		(2) the license holder, knowingly or without the
1057	1065		exercise of due care, violated this chapter or a rule adopted or
1058	1066		order issued under this chapter; or
1059	1067		(3) a fact or condition exists that, if it had existed
1060	1068		or had been known to exist at the time of the original application
1061	1069		for the license, clearly would have justified the commissioner's
1062	1070		denial of the application.
1063	1071		SECTION 89. Section 394.204, Finance Code, is amended by
1064	1072		amending Subsections (b), (f), (g), and (k) and adding Subsection
1065	1073		(j-1) to read as follows:
1066	1074		(b) A registration issued under this section is valid for
1067	1075		the period prescribed by finance commission rule adopted under
1068	1076		Section 14.112 [Registration expires on December 31 of the year in
1069	1077		which the registration occurs and must be renewed annually].
1070	1078		(f) Subject to Subsection (j-1), a [A] person may renew a
1071	1079		registration by paying the appropriate fee and completing all
1072	1080		required documents.
1073	1081		(g) Subject to Section 14.112, the [The] finance commission
1074	1082		by rule may establish procedures to facilitate the registration and
1075	1083		collection of fees under this section[, including rules staggering
1076	1084		throughout the year the dates on which fees are due].
1077	1085		(j-1) The commissioner may refuse to renew the registration
1078	1086		of a person who fails to comply with an order issued by the
1079	1087		commissioner to enforce this chapter.
1080	1088		(k) In addition to the power to refuse an initial
1081	1089		application as specified in this section, the commissioner may
1082	1090		suspend or revoke a provider's registration after notice and
1083	1091		opportunity for a hearing if the commissioner finds that any of the
1084	1092		following conditions are met:
1085	1093		(1) a fact or condition exists that, if it had existed
1086	1094		when the provider applied for registration, would have been grounds
1087	1095		for denying registration;
1088	1096		(2) a fact or condition exists that the commissioner
1089	1097		was not aware of when the provider applied for registration and
1090	1098		would have been grounds for denying registration;
1091	1099		(3) the provider violates this subchapter or rule or
1092	1100		order of the commissioner under this subchapter;
1093	1101		(4) the provider is insolvent;
1094	1102		(5) the provider refuses to permit the commissioner to
1095	1103		make an examination authorized by this subchapter;
1096	1104		(6) the provider fails to respond within a reasonable
1097	1105		time and in an appropriate manner to communications from the
1098	1106		commissioner;
1099	1107		(7) the provider has received money from or on behalf
1100	1108		of a consumer for disbursement to a creditor under a debt management
1101	1109		plan that provides for regular periodic payments to creditors in
1102	1110		full repayment of the principal amount of the debts and the provider
1103	1111		has failed to disburse money to the creditor on behalf of the
1104	1112		consumer within a reasonable time, normally 30 days;
1105	1113		(8) the commissioner determines that the provider's
1106	1114		trust account is not materially in balance with and reconciled to
1107	1115		the consumer's account; or
1108	1116		(9) the provider fails to warrant the belief that the
1109	1117		business will be operated lawfully and fairly and within the
1110	1118		provisions and purposes of this subchapter.
1111	1119		SECTION 90. Section 394.205(b), Finance Code, is amended to
1112	1120		read as follows:
1113	1121		(b) Each provider shall file a report with the commissioner
1114	1122		at each renewal of the provider's registration. The report must at
1115	1123		a minimum disclose in detail and under appropriate headings:
1116	1124		(1) the assets and liabilities of the provider at the
1117	1125		beginning and end of the period, if the provider is a nonprofit or
1118	1126		tax exempt organization;
1119	1127		(2) the total number of debt management plans the
1120	1128		provider has initiated on behalf of consumers in this state during
1121	1129		that period [year]; and
1122	1130		(3) records of total and average fees charged to
1123	1131		consumers, including all voluntary contributions received from
1124	1132		consumers.
1125	1133		SECTION 91. Section 394.214(e), Finance Code, is amended to
1126	1134		read as follows:
1127	1135		(e) The commissioner may enforce this subchapter and rules
1128	1136		adopted under this subchapter by:
1129	1137		(1) ordering the violator to cease and desist from the
1130	1138		violation and any similar violations;
1131	1139		(2) ordering the violator to take affirmative action
1132	1140		to correct the violation, including the restitution of money or
1133	1141		property to a person aggrieved by the violation;
1134	1142		(3) imposing an administrative penalty not to exceed
1135	1143		$1,000 for each violation as provided by Subchapter F, Chapter 14;
1136	1144		or
1137	1145		(4) rejecting an initial application, refusing to
1138	1146		renew a registration, or revoking or suspending a registration as
1139	1147		provided by Section 394.204.
1140	1148		SECTION 92. Section 1956.0612, Occupations Code, is amended
1141	1149		by amending Subsections (b) and (d) and adding Subsections (b-1),
1142	1150		(d-1), and (h) to read as follows:
1143	1151		(b) To register as a dealer, a person must provide to the
1144	1152		commissioner[, on or before December 31 preceding each calendar
1145	1153		year in which the person seeks to act as a dealer]:
1146	1154		(1) a list of each location in this state at which the
1147	1155		person will conduct business as a dealer; and
1148	1156		(2) a processing fee for each location included on the
1149	1157		list furnished under Subdivision (1).
1150	1158		(b-1) A registration issued under this section is valid for
1151	1159		the period prescribed by commission rule adopted under Section
1152	1160		14.112, Finance Code.
1153	1161		(d) The commission by rule shall establish a deadline for
1154	1162		the submission of the information and fee required by Subsection
1155	1163		(b) for initial issuance and renewal of registrations under this
1156	1164		section.
1157	1165		(d-1) After the applicable [December 31] deadline for
1158	1166		initial or renewal registrations, a dealer may amend the
1159	1167		registration required under Subsection (a) to reflect any change in
1160	1168		the information provided by the registration.
1161	1169		(h) The commissioner may refuse to renew the registration of
1162	1170		a person who fails to comply with an order issued by the
1163	1171		commissioner to enforce this chapter.
1164	1172		SECTION 93. Section 1956.0614(a), Occupations Code, is
1165	1173		amended to read as follows:
1166	1174		(a) The commissioner may revoke the registration of a dealer
1167	1175		if the commissioner concludes that the dealer has violated this
1168	1176		chapter or an order issued by the commissioner to enforce this
1169	1177		chapter. The commissioner shall recite the basis of the decision in
1170	1178		an order revoking the registration.
1171	1179		SECTION 94. Section 1956.063, Occupations Code, is amended
1172	1180		by amending Subsection (c) and adding Subsection (c-1) to read as
1173	1181		follows:
1174	1182		(c) For each transaction regulated by this subchapter, the
1175	1183		dealer shall submit a report on a preprinted and prenumbered form
1176	1184		prescribed by the commissioner or in the manner described by
1177	1185		Subsection (c-1). The form must include the following:
1178	1186		(1) the date of the transaction;
1179	1187		(2) a description of the crafted precious metal
1180	1188		purchased by the dealer;
1181	1189		(3) the name and physical address of the dealer; and
1182	1190		(4) the name, physical description, and physical
1183	1191		address of the seller or transferor.
1184	1192		(c-1) A dealer may submit a list required by Section
1185	1193		1956.062(b) to satisfy the reporting requirement under this section
1186	1194		if the list contains the information described by Subsection (c).
1187	1195		SECTION 95. The following provisions of the Finance Code
1188	1196		are repealed:
1189	1197		(1) Section 14.208(d);
1190	1198		(2) Section 371.052(b); and
1191	1199		(3) Sections 371.304(b), (c), and (d).
1192	1200		SECTION 96. Section 14.112, Finance Code, as added by this
1193	1201		Act, applies only to a license or registration issued or renewed on
1194	1202		or after September 1, 2019. A license or registration issued or
1195	1203		renewed before that date is governed by the law in effect
1196	1204		immediately before the effective date of this Act, and the former
1197	1205		law is continued in effect for that purpose.
1198	1206		SECTION 97. A license issued under Section 371.104, Finance
1199	1207		Code, before the effective date of this Act continues in effect
1200	1208		until June 30, 2020. The license may be renewed under Subchapter C,
1201	1209		Chapter 371, Finance Code, as amended by this Act.
1202	1210		SECTION 98. The changes in law made by this Act do not
1203	1211		affect the validity of a disciplinary action or other proceeding
1204	1212		that was initiated before the effective date of this Act and that is
1205	1213		pending before a court or other governmental entity on that date.
1206	1214		SECTION 99. The changes in law made by this Act to Section
1207	1215		371.304, Finance Code, apply only to an offense committed on or
1208	1216		after the effective date of this Act. An offense committed before
1209	1217		the effective date of this Act is governed by the law in effect on
1210	1218		the date the offense was committed, and the former law is continued
1211	1219		in effect for that purpose. For purposes of this section, an offense
1212	1220		was committed before the effective date of this Act if any element
1213	1221		of the offense occurred before that date.
1214	1222		SECTION 100. (a) Not later than November 1, 2019, the
1215	1223		Finance Commission of Texas shall adopt rules to implement the
1216	1224		pawnshop employee license program under Section 371.101, Finance
1217	1225		Code, as amended by this Act.
1218	1226		(b) Not later than December 1, 2019, the Office of Consumer
1219	1227		Credit Commissioner shall be prepared to accept applications for
1220	1228		licenses under the pawnshop employee license program described by
1221	1229		Section 371.101, Finance Code, as amended by this Act.
1222	1230		SECTION 101. This Act takes effect September 1, 2019.
1223		-	______________________________ ______________________________
1224		-	President of the Senate Speaker of the House
1225		-	I certify that H.B. No. 1442 was passed by the House on April
1226		-	3, 2019, by the following vote: Yeas 147, Nays 0, 2 present, not
1227		-	voting; and that the House concurred in Senate amendments to H.B.
1228		-	No. 1442 on May 22, 2019, by the following vote: Yeas 144, Nays 0,
1229		-	1 present, not voting.
1230		-	______________________________
1231		-	Chief Clerk of the House
1232		-	I certify that H.B. No. 1442 was passed by the Senate, with
1233		-	amendments, on May 3, 2019, by the following vote: Yeas 30, Nays 0.
1234		-	______________________________
1235		-	Secretary of the Senate
1236		-	APPROVED: __________________
1237		-	Date
1238		-	__________________
1239		-	Governor
	1231	+	* * * * *