| 1 | 1 | | By: Geren H.B. No. 4738 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to the elimination of the portion of the Loan |
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| 9 | 9 | | Administration Fee remitted to the comptroller. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 342.201(f), Finance Code, is amended to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | (f) A loan contract under this subchapter may provide for an |
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| 14 | 14 | | administrative fee in an amount not to exceed $25 for a loan of more |
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| 15 | 15 | | than $1,000 or $20 for a loan of $1,000 or less. The administrative |
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| 16 | 16 | | fee is considered earned when the loan is made or refinanced and is |
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| 17 | 17 | | not subject to refund. An administrative fee is not interest. A |
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| 18 | 18 | | lender refinancing the loan may not contract for or receive an |
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| 19 | 19 | | administrative fee for the loan more than once in any 180-day |
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| 20 | 20 | | period, except that if the loan has an interest charge authorized by |
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| 21 | 21 | | Subsection (e) the lender may not contract for or receive the |
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| 22 | 22 | | administrative fee more than once in any 365-day period. [One |
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| 23 | 23 | | dollar of each administrative fee may be deposited with the |
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| 24 | 24 | | comptroller for use in carrying out the finance commission's |
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| 25 | 25 | | responsibilities under Section 11.3055.] |
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| 26 | 26 | | SECTION 2. Section 342.308(c), Finance Code, is amended to |
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| 27 | 27 | | read as follows: |
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| 28 | 28 | | (c) An administrative fee under Subsection (a)(9) is |
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| 29 | 29 | | considered earned when the loan is made or refinanced and is not |
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| 30 | 30 | | subject to refund. A lender refinancing the loan may not contract |
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| 31 | 31 | | for or receive an administrative fee for the loan more than once in |
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| 32 | 32 | | any 180-day period. [Fifty cents of each administrative fee may be |
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| 33 | 33 | | deposited with the comptroller for use in carrying out the finance |
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| 34 | 34 | | commission's responsibilities under Section 11.3055.] |
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| 35 | 35 | | SECTION 3. The change in law made by this Act does not |
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| 36 | 36 | | affect tax liability accruing before the effective date of this |
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| 37 | 37 | | Act. That liability continues in effect as if this article had not |
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| 38 | 38 | | been enacted, and the former law is continued in effect for the |
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| 39 | 39 | | collection of taxes due and for civil and criminal enforcement of |
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| 40 | 40 | | the liability for those taxes. |
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| 41 | 41 | | SECTION 4. EFFECTIVE DATE OF ARTICLE. Except as otherwise |
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| 42 | 42 | | provided by this article, this article takes effect January 1, |
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| 43 | 43 | | 2026. |
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