Texas 2023 - 88th Regular

Texas House Bill HB4219 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 4219
2	2
3	3
4	4	AN ACT
5	5	relating to the maximum rate or amount of interest of certain
6	6	consumer loans.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 342.201, Finance Code, is amended by
9	9	amending Subsection (e) and adding Subsections (e-2) and (e-3) to
10	10	read as follows:
11	11	(e) A loan contract under this chapter that is not secured
12	12	by real property may provide for a rate or amount of interest
13	13	computed using the true daily earnings method or the scheduled
14	14	installment earnings method that does not exceed:
15	15	(1) 30 percent plus the federal funds rate a year on
16	16	that part of the cash advance that is less than or equal to the
17	17	amount computed under Subchapter C, Chapter 341, using the
18	18	reference base amount of $500;
19	19	(2) 24 percent plus the federal funds rate a year on
20	20	that part of the cash advance that is more than the amount computed
21	21	for Subdivision (1) but less than or equal to an amount computed
22	22	under Subchapter C, Chapter 341, using the reference base amount of
23	23	$1,050; and
24	24	(3) 18 percent plus the federal funds rate a year on
25	25	that part of the cash advance that is more than the amount computed
26	26	for Subdivision (2) but less than or equal to an amount computed
27	27	under Subchapter C, Chapter 341, using the reference base amount of
28	28	$2,500.
29	29	(e-2) On March 1 and September 1 of each year, the
30	30	commissioner shall compute the ceilings applicable under
31	31	Subsection (e) for the six-month period effective the following May
32	32	1 and November 1, respectively. As prescribed by this subsection,
33	33	the ceilings are effective for the six-month period beginning on
34	34	the effective date and are subject to adjustment after each
35	35	six-month period. The commissioner shall submit to the secretary
36	36	of state for publication in the Texas Register the ceilings
37	37	computed under this subsection not later than the 11th day after the
38	38	date on which the ceiling is computed.
39	39	(e-3) For purposes of this section:
40	40	(1) "Ceiling" means the maximum rate or amount of
41	41	interest.
42	42	(2) "Federal funds rate" means an interest rate
43	43	computed by averaging the Federal Funds rates published by the
44	44	Federal Reserve Bank of New York for each day during the six
45	45	calendar months preceding the computation date of the ceilings,
46	46	except that if that average:
47	47	(A) is greater than five percent, the federal
48	48	funds rate is five percent; and
49	49	(B) is less than zero percent, the federal funds
50	50	rate is zero percent.
51	51	SECTION 2. The change in law made by this Act applies only
52	52	to a loan made on or after the effective date of this Act. A loan
53	53	made before the effective date of this Act is governed by the law in
54	54	effect on the date the loan was made, and the former law is
55	55	continued in effect for that purpose. For purposes of this section,
56	56	a refinance or renewal of a loan is considered made on the date the
57	57	loan being refinanced or renewed was made.
58	58	SECTION 3. This Act takes effect September 1, 2023.
59	59	______________________________ ______________________________
60	60	President of the Senate Speaker of the House
61	61	I certify that H.B. No. 4219 was passed by the House on May 9,
62	62	2023, by the following vote: Yeas 130, Nays 13, 2 present, not
63	63	voting.
64	64	______________________________
65	65	Chief Clerk of the House
66	66	I certify that H.B. No. 4219 was passed by the Senate on May
67	67	22, 2023, by the following vote: Yeas 28, Nays 3.
68	68	______________________________
69	69	Secretary of the Senate
70	70	APPROVED: _____________________
71	71	Date
72	72	_____________________
73	73	Governor