By:  Sibley                                            S.B. No. 317
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to continuation and functions of the Office of Consumer
 1-3     Credit Commissioner and the regulation of certain financial
 1-4     businesses.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 14.056, Finance Code, is amended to read
 1-7     as follows:
 1-8           Sec. 14.056.  CONFLICT OF INTEREST.  (a)  In this section,
 1-9     "Texas trade association" means a cooperative and voluntarily
1-10     joined association of business or professional competitors in this
1-11     state designed to assist its members and its industry or profession
1-12     in dealing with mutual business or professional problems and in
1-13     promoting their common interest.
1-14           (b)  A person may not be an  employee of the office employed
1-15     in a "bona fide executive, administrative, or professional
1-16     capacity," as that phrase is used for purposes of establishing an
1-17     exemption to the overtime provisions of the federal Fair Labor
1-18     Standards Act of 1938 (29 U.S.C.  Section 201 et seq.), and its
1-19     subsequent amendments, if:
1-20                 (1)  the person is an officer, employee, or paid
1-21     consultant of a Texas trade association in an industry regulated by
1-22     the office; or
1-23                 (2)  the person's spouse is an officer, manager, or
1-24     paid consultant of a Texas trade association in an industry
1-25     regulated by the office.
 2-1           (c)  A person may not act as the general counsel to the
 2-2     office if the person is required to register as a lobbyist under
 2-3     Chapter 305, Government Code, because of the person's activities
 2-4     for compensation on behalf of a profession related to the operation
 2-5     of [The commissioner or an assistant commissioner, examiner, or
 2-6     other employee of the office may not be an officer, employee, or
 2-7     paid consultant of a trade association in an industry regulated by]
 2-8     the office.
 2-9           SECTION 2.  Section 14.058, Finance Code, is amended to read
2-10     as follows:
2-11           Sec. 14.058.  EQUAL EMPLOYMENT OPPORTUNITY.  (a)  The
2-12     commissioner or the commissioner's designee shall prepare and
2-13     maintain a written policy statement that implements a program of
2-14     equal employment opportunity to ensure that all personnel decisions
2-15     are made without regard to race, color, disability, sex, religion,
2-16     age, or national origin.
2-17           (b)  The policy statement must include:
2-18                 (1)  personnel policies, including policies relating to
2-19     recruitment, evaluation, selection, training, and promotion of
2-20     personnel, that show the intent of the office to avoid the unlawful
2-21     employment practices described by Chapter 21, Labor Code; and
2-22                 (2)  an analysis of the extent to which the composition
2-23     of the office's personnel is in accordance with state and federal
2-24     law and a description of reasonable methods to achieve compliance
2-25     with state and federal law.
2-26           (c)  The policy statement must:
 3-1                 (1)  be updated annually;
 3-2                 (2)  be reviewed by the state Commission on Human
 3-3     Rights for compliance with Subsection (b)(1); and
 3-4                 (3)  be filed with the governor's office [plan to
 3-5     ensure implementation of a program of equal employment opportunity
 3-6     under which all personnel transactions are made without regard to
 3-7     race, color, disability, sex, religion, age, or national origin.
 3-8     The plan must include:]
 3-9                 [(1)  a comprehensive analysis of the office's
3-10     workforce by race, sex, ethnic origin, class of position, and
3-11     salary or wage;]
3-12                 [(2)  plans for recruitment, evaluation, selection,
3-13     appointment, training, promotion, and other personnel policies;]
3-14                 [(3)  steps reasonably designed to overcome any
3-15     identified underutilization of minorities and women in the office's
3-16     workforce; and]
3-17                 [(4)  objectives and goals, timetables for achieving
3-18     those objectives and goals, and assignment of responsibility for
3-19     their achievement.]
3-20           [(b)  The plan must cover an annual period and the
3-21     commissioner shall update it at least annually.]
3-22           [(c)  The office shall submit a plan progress report to the
3-23     governor's office not later than the 30th day after November 1 and
3-24     April 1 of each year and shall include in the report steps the
3-25     office has taken during the reporting period to comply with
3-26     requirements of this section].
 4-1           SECTION 3.  Section 14.062, Finance Code, is amended to read
 4-2     as follows:
 4-3           Sec. 14.062.  CONSUMER INFORMATION AND COMPLAINTS.  (a)  The
 4-4     office shall maintain a file on each written complaint filed with
 4-5     the office.  The file must include:
 4-6                 (1)  the name of the person who filed the complaint;
 4-7                 (2)  the date the complaint is received by the office;
 4-8                 (3)  the subject matter of the complaint;
 4-9                 (4)  the name of each person contacted in relation to
4-10     the complaint;
4-11                 (5)  a summary of the results of the review or
4-12     investigation of the complaint; and
4-13                 (6)  an explanation of the reason the file was closed,
4-14     if the office closed the file without taking action other than to
4-15     investigate the complaint.
4-16           (b)  The office shall provide to the person filing the
4-17     complaint and to each person who is a subject of the complaint a
4-18     copy of the office's policies and procedures relating to complaint
4-19     investigation and resolution.
4-20           (c)  The office, at least quarterly until final disposition
4-21     of the complaint, shall notify the person filing the complaint and
4-22     each person who is a subject of the complaint of the status of the
4-23     investigation [commissioner shall keep an information file about
4-24     each complaint filed with the office relating to a license holder
4-25     or other lender regulated by the office under this chapter or Title
4-26     4 or 5.]
 5-1           [(b)  At least quarterly until final disposition of any
 5-2     written complaint filed with the office relating to a license
 5-3     holder or other lender regulated by the office, the commissioner
 5-4     shall notify the parties to the complaint of the status of the
 5-5     complaint] unless the notice would jeopardize an undercover
 5-6     investigation.
 5-7           SECTION 4.  Section 14.066, Finance Code, is amended to read
 5-8     as follows:
 5-9           Sec. 14.066.  SUNSET PROVISION.  The office is subject to
5-10     Chapter 325, Government Code (Texas Sunset Act). Unless continued
5-11     in existence as provided by that chapter, the office is abolished
5-12     September 1, 2013 [2001].
5-13           SECTION 5.  Subchapter B, Chapter 14, Finance Code, is
5-14     amended by adding Section 14.067 to read as follows:
5-15           Sec. 14.067.  EMPLOYEE INCENTIVE PROGRAM.  The commissioner
5-16     or the commissioner's designee shall provide to agency employees
5-17     information and training on the benefits and methods of
5-18     participation in the state employee incentive program.
5-19           SECTION 6.  Section 14.106, Finance Code, is amended to read
5-20     as follows:
5-21           Sec. 14.106.  INFORMATION [PROCEDURES] REGARDING EMPLOYMENT
5-22     REQUIREMENTS [STANDARDS OF CONDUCT].  The commissioner or the
5-23     commissioner's designee shall provide to agency employees, as often
5-24     as necessary, information regarding the requirements for employment
5-25     under this chapter, including information regarding a person's
5-26     responsibilities under applicable laws relating to standards of
 6-1     conduct for state employees [shall develop a procedure to ensure
 6-2     that a person holding the position of commissioner and each
 6-3     assistant commissioner, examiner, and other employee of the office
 6-4     is informed of the standards of conduct required by law for a state
 6-5     official or employee].
 6-6           SECTION 7.  Section 14.107, Finance Code, is amended to read
 6-7     as follows:
 6-8           Sec. 14.107.  FEES.  (a)  The finance commission
 6-9     [commissioner] shall establish reasonable and necessary fees for
6-10     carrying out the commissioner's powers and duties under this
6-11     chapter, Title 4, and Chapters 371, 392, and 394 and under Chapters
6-12     38-41, Business & Commerce Code.
6-13           (b)  The finance commission by rule shall set the fees for
6-14     licensing and examination under Chapter 342, 348, or 371 at amounts
6-15     or rates necessary to recover the costs of administering those
6-16     chapters.  The rules may provide that the amount of a fee charged
6-17     to a license holder is based on the volume of the license holder's
6-18     regulated business and other key factors.  The commissioner may
6-19     provide for collection of a single annual fee from a person
6-20     licensed under Chapter 342, 348, or 371 to include amounts due for
6-21     both licensing and examination.
6-22           SECTION 8.  Section 341.001, Finance Code, is amended to read
6-23     as follows:
6-24           Sec. 341.001.  DEFINITIONS.  In this subtitle:
6-25                 (1)  "Authorized lender" means a person who holds a
6-26     license issued under Chapter 342, a bank, or a savings association.
 7-1                 (2)  "Bank" means a person:
 7-2                       (A)  organized as a state bank under Subtitle A,
 7-3     Title 3, or under similar laws of another state if the deposits of
 7-4     a bank from another state are insured by the Federal Deposit
 7-5     Insurance Corporation; or
 7-6                       (B)  organized as a national bank under 12 U.S.C.
 7-7     Section 21 et seq., as subsequently amended.
 7-8                 (3)  "Cash advance" means the total of the amount of
 7-9     cash or its equivalent that the borrower receives and the amount
7-10     that is paid at the borrower's direction or request, on the
7-11     borrower's behalf, or for the borrower's benefit.
7-12                 (4)  "Commissioner" means the consumer credit
7-13     commissioner.
7-14                 (5)  "Credit union" means a person:
7-15                       (A)  doing business under Subtitle D, Title 3; or
7-16                       (B)  organized under the Federal Credit Union Act
7-17     (12 U.S.C. Section 1751 et seq.), as subsequently amended.
7-18                 (6)  "Deferred presentment transaction" means a
7-19     transaction in which:
7-20                       (A)  a cash advance is made in exchange for a
7-21     personal check or authorization to debit a deposit account;
7-22                       (B)  the amount of the check or authorized debit
7-23     equals the amount of the advance plus a fee; and
7-24                       (C)  the person making the advance agrees that
7-25     the check will not be cashed or deposited or the authorized debit
7-26     will not be made until a designated future date.
 8-1                 (7)  "Finance commission" means the Finance Commission
 8-2     of Texas or a subcommittee created by rule of the Finance
 8-3     Commission of Texas.
 8-4                 (8) [(7)]  "Interest" has the meaning assigned by
 8-5     Section 301.002 [301.001].
 8-6                 (9)  "Loan" has the meaning assigned by Section 301.002
 8-7     and includes a sale-leaseback transaction and a deferred
 8-8     presentment transaction.
 8-9                 (10)  "Sale-leaseback transaction" means a transaction
8-10     in which a person sells personal property used primarily for
8-11     personal, family, or household use and the buyer of the property
8-12     agrees to lease the property back to the seller.  In a
8-13     sale-leaseback transaction:
8-14                       (A)  the buyer is a creditor and the seller is an
8-15     obligor;
8-16                       (B)  an agreement to defer payment of a debt and
8-17     an obligation to pay the debt are established; and
8-18                       (C)  any amount received by the buyer in excess
8-19     of the price paid for the property by the buyer is interest subject
8-20     to this subtitle.
8-21                 (11) [(8)]  "Savings association" means a person:
8-22                       (A)  organized as a state savings and loan
8-23     association or savings bank under Subtitle B or C, Title 3, or
8-24     under similar laws of another state if the deposits of the savings
8-25     association from another state are insured by the Federal Deposit
8-26     Insurance Corporation; or
 9-1                       (B)  organized as a federal savings and loan
 9-2     association or savings bank under the Home Owners' Loan Act (12
 9-3     U.S.C. Section 1461 et seq.), as subsequently amended.
 9-4           SECTION 9.  Section 341.403, Finance Code, is amended by
 9-5     adding Subsections (c) and (d) to read as follows:
 9-6           (c)  The finance commission may not adopt rules restricting
 9-7     advertising or competitive bidding by a license holder regulated by
 9-8     the Office of Consumer Credit Commissioner except to prohibit
 9-9     false, misleading, or deceptive practices.
9-10           (d)  In its rules to prohibit false, misleading, or deceptive
9-11     practices, the finance commission may not include a rule that:
9-12                 (1)  restricts the use of any medium for advertising;
9-13                 (2)  restricts the use of a license holder's personal
9-14     appearance or voice in an advertisement;
9-15                 (3)  relates to the size or duration of an
9-16     advertisement by the license holder; or
9-17                 (4)  restricts the license holder's advertisement under
9-18     a trade name, unless the trade name is deceptive.
9-19           SECTION 10.  Chapter 341, Finance Code, is amended by adding
9-20     Subchapter F to read as follows:
9-21             SUBCHAPTER F.  LICENSING AND REGULATION IN GENERAL
9-22           Sec. 341.501.  STAGGERED RENEWAL.  The finance commission by
9-23     rule may adopt a system under which licenses under this subtitle
9-24     expire on various dates during the year.  For the year in which the
9-25     license expiration date is changed, the Office of Consumer Credit
9-26     Commissioner shall prorate license fees on a monthly basis so that
 10-1    each license holder pays only that portion of the license fee that
 10-2    is allocable to the number of months during which the license is
 10-3    valid.  On renewal of the license on the new expiration date, the
 10-4    total license renewal fee is payable.
 10-5          Sec. 341.502.  FORM OF LOAN CONTRACT.  (a)  A contract for a
 10-6    loan under Chapter 342, a retail installment transaction under
 10-7    Chapter 348, or a home equity loan regulated by the Office of
 10-8    Consumer Credit Commissioner, whether in English or Spanish, must
 10-9    be written in plain language designed to be easily understood by
10-10    the average consumer.  The contract must be printed in an easily
10-11    readable font and type size.
10-12          (b)  The finance commission shall adopt rules governing the
10-13    form of contracts to which this section applies.  The rules must
10-14    include model contracts complying with the rules and this section.
10-15          (c)  A person governed by this section is not required to use
10-16    a model contract.  The person, however, may not use a contract
10-17    other than a model contract unless the person has submitted the
10-18    contract to the commissioner.  The commissioner shall issue an
10-19    order disapproving the contract if the commissioner determines that
10-20    the contract does not comply with this section or rules adopted
10-21    under this section.
10-22          (d)  The person may begin using a contract submitted under
10-23    Subsection (c) on the date it is submitted for approval.  If the
10-24    commissioner issues an order disapproving the contract, the person
10-25    may not use the contract after the order takes effect.
10-26          (e)  A person may not represent that the commissioner's
 11-1    approval or failure to disapprove a contract constitutes an
 11-2    endorsement of the contract by the commissioner, the Office of
 11-3    Consumer Credit Commissioner, or the finance commission.
 11-4          SECTION 11.  Subchapter A, Chapter 342, Finance Code, is
 11-5    amended by adding Sections 342.007 and 342.008 to read as follows:
 11-6          Sec. 342.007.  DEFERRED PRESENTMENT TRANSACTION.  The finance
 11-7    commission shall adopt rules providing for the regulation of
 11-8    deferred presentment transactions.
 11-9          Sec. 342.008.  ATTEMPT TO EVADE LAW.  A person who is a party
11-10    to a deferred presentment transaction may not evade the application
11-11    of this subtitle or a rule adopted under this section by use of any
11-12    device, subterfuge, or pretense.
11-13          SECTION 12.  Subsection (c), Section 342.101, Finance Code,
11-14    is amended to read as follows:
11-15          (c)  On the filing of each license application, the applicant
11-16    shall pay to the commissioner for the license's year of issuance a
11-17    license fee in an amount determined as provided by Section 14.107
11-18    [of:]
11-19                [(1)  $100 if the license is granted not later than
11-20    June 30; or]
11-21                [(2)  $50 if the license is granted after June 30].
11-22          SECTION 13.  Section 342.154, Finance Code, is amended to
11-23    read as follows:
11-24          Sec. 342.154.  ANNUAL LICENSE FEE.  [(a)] Not later than
11-25    December 1, a license holder shall pay to the commissioner for each
11-26    license held an annual fee for the year beginning the next January
 12-1    1, in an amount determined as provided by Section 14.107.
 12-2          [(b)  The annual fee for a license under this chapter is $200
 12-3    except that if, on September 30 preceding the date on which the
 12-4    annual fee is due, the gross unpaid balance of loans regulated
 12-5    under this chapter in the office for which the license is issued is
 12-6    $100,000 or less, the annual fee is $100.]
 12-7          SECTION 14.  Chapter 348, Finance Code, is amended by adding
 12-8    Subchapter F to read as follows:
 12-9            SUBCHAPTER F.  LICENSING; ADMINISTRATION OF CHAPTER
12-10          Sec. 348.501.  LICENSE REQUIRED.  (a)  A person may not act
12-11    as a holder under this chapter unless the person:
12-12                (1)  is an authorized lender or a credit union; or
12-13                (2)  holds a license issued under this chapter.
12-14          (b)  A person may not use any device, subterfuge, or pretense
12-15    to evade the application of this section.
12-16          Sec. 348.502.  APPLICATION REQUIREMENTS.  (a)  The
12-17    application for a license under this chapter must:
12-18                (1)  be under oath;
12-19                (2)  identify the applicant's principal parties in
12-20    interest; and
12-21                (3)  contain other relevant information that the
12-22    commissioner requires.
12-23          (b)  On the filing of a license application, the applicant
12-24    shall pay to the commissioner:
12-25                (1)  an investigation fee of $200; and
12-26                (2)  for the license's year of issuance, a license fee
 13-1    in an amount determined as provided by Section 14.107.
 13-2          Sec. 348.503.  INVESTIGATION OF APPLICATION.  On the filing
 13-3    of an application and payment of the required fees, the
 13-4    commissioner shall conduct an investigation to determine whether to
 13-5    issue the license.
 13-6          Sec. 348.504.  APPROVAL OR DENIAL OF APPLICATION.  (a)  The
 13-7    commissioner shall approve the application and issue to the
 13-8    applicant a license  under this chapter if the commissioner finds
 13-9    that:
13-10                (1)  the financial responsibility, experience,
13-11    character, and general fitness of the applicant are sufficient to:
13-12                      (A)  command the confidence of the public; and
13-13                      (B)  warrant the belief that the business will be
13-14    operated lawfully and fairly, within the purposes of this chapter;
13-15    and
13-16                (2)  the forms and contracts to be used by the
13-17    applicant are appropriate and adequate to protect the interests of
13-18    retail buyers.
13-19          (b)  If the commissioner does not find the eligibility
13-20    requirements of Subsection (a), the commissioner shall notify the
13-21    applicant.
13-22          (c)  If an applicant requests a hearing on the application
13-23    not later than the 30th day after the date of notification under
13-24    Subsection (b), the applicant is entitled to a hearing not later
13-25    than the 60th day after the date of the request.
13-26          (d)  The commissioner shall approve or deny the application
 14-1    not later than the 60th day after the date of the filing of a
 14-2    completed application with payment of the required fees, or if a
 14-3    hearing is held, after the date of the completion of the hearing on
 14-4    the application.  The commissioner and the applicant may agree to a
 14-5    later date in writing.
 14-6          Sec. 348.505.  DISPOSITION OF FEES ON DENIAL OF APPLICATION.
 14-7    If the commissioner denies the application, the commissioner shall
 14-8    retain the investigation fee and shall return to the applicant the
 14-9    license fee submitted with the application.
14-10          Sec. 348.506.  ANNUAL LICENSE FEE.  Not later than December
14-11    1, a license holder shall pay to the commissioner for each license
14-12    held an annual fee for the year beginning the next January 1, in an
14-13    amount determined as provided by Section 14.107.
14-14          Sec. 348.507.  EXPIRATION OF LICENSE ON FAILURE TO PAY ANNUAL
14-15    FEE.  If the annual fee for a license is not paid before the 16th
14-16    day after the date on which the written notice of delinquency of
14-17    payment has been given to the license holder, the license expires
14-18    on the later of:
14-19                (1)  that day; or
14-20                (2)  December 31 of the last year for which an annual
14-21    fee was paid.
14-22          Sec. 348.508.  LICENSE SUSPENSION OR REVOCATION.  After
14-23    notice and a hearing the commissioner may suspend or revoke a
14-24    license if the commissioner finds that:
14-25                (1)  the license holder failed to pay the annual
14-26    license fee, an examination fee, an investigation fee, or another
 15-1    charge imposed by the commissioner;
 15-2                (2)  the license holder, knowingly or without the
 15-3    exercise of due care, violated this chapter or a rule adopted or
 15-4    order issued under this chapter; or
 15-5                (3)  a fact or condition exists that, if it had existed
 15-6    or had been known to exist at the time of the original application
 15-7    for the license, clearly would have justified the commissioner's
 15-8    denial of the application.
 15-9          Sec. 348.509.  REINSTATEMENT OF SUSPENDED LICENSE;  ISSUANCE
15-10    OF NEW LICENSE AFTER REVOCATION.  The commissioner may reinstate a
15-11    suspended license or issue a new license on application to a person
15-12    whose license has been revoked if at the time of the reinstatement
15-13    or issuance no fact or condition exists that clearly would have
15-14    justified the commissioner's denial of an original application for
15-15    the license.
15-16          Sec. 348.510.  SURRENDER OF LICENSE.  A license holder may
15-17    surrender a license issued under this chapter by delivering to the
15-18    commissioner:
15-19                (1)  the license; and
15-20                (2)  a written notice of the license's surrender.
15-21          Sec. 348.511.  EFFECT OF LICENSE SUSPENSION, REVOCATION, OR
15-22    SURRENDER.  (a)  The suspension, revocation, or surrender of a
15-23    license issued under this chapter does not affect the obligation of
15-24    a contract between the license holder and a retail buyer entered
15-25    into before the suspension, revocation, or surrender.
15-26          (b)  Surrender of a license does not affect the license
 16-1    holder's civil or criminal liability for an act committed before
 16-2    surrender.
 16-3          Sec. 348.512.  TRANSFER OR ASSIGNMENT OF LICENSE.  A license
 16-4    may be transferred or assigned only with the approval of the
 16-5    commissioner.
 16-6          Sec. 348.513.  ADOPTION OF RULES.  (a)  The finance
 16-7    commission may adopt rules to enforce this chapter.
 16-8          (b)  The commissioner shall recommend proposed rules to the
 16-9    finance commission.
16-10          Sec. 348.514.  EXAMINATION;  ACCESS TO RECORDS.  (a)  At the
16-11    times the commissioner considers necessary, the commissioner or the
16-12    commissioner's representative shall:
16-13                (1)  examine each place of business of each license
16-14    holder; and
16-15                (2)  investigate the license holder's transactions and
16-16    records, including books, accounts, papers, and correspondence, to
16-17    the extent the transactions and records pertain to the business
16-18    regulated under this chapter.
16-19          (b)  The license holder shall:
16-20                (1)  give the commissioner or the commissioner's
16-21    representative free access to the license holder's office, place of
16-22    business, files, safes, and vaults; and
16-23                (2)  allow the commissioner or the commissioner's
16-24    representative to make a copy of an item that may be investigated
16-25    under Subsection (a)(2).
16-26          (c)  During an examination the commissioner or the
 17-1    commissioner's representative may administer oaths and examine any
 17-2    person under oath on any subject pertinent to a matter that the
 17-3    commissioner is authorized or required to consider, investigate, or
 17-4    secure information about under this chapter.
 17-5          (d)  Information obtained under this section is confidential.
 17-6          (e)  A license holder's violation of Subsection (b) is a
 17-7    ground for the suspension or revocation of the license.
 17-8          (f)  An examination of a license holder's place of business
 17-9    may be made only:
17-10                (1)  after advance notice; and
17-11                (2)  during normal business hours.
17-12          Sec. 348.515.  GENERAL INVESTIGATION.  To discover a
17-13    violation of this chapter or to obtain information required under
17-14    this chapter, the commissioner or the commissioner's representative
17-15    may investigate the records, including books, accounts, papers, and
17-16    correspondence, of a person, including a license holder, who the
17-17    commissioner has reasonable cause to believe is violating this
17-18    chapter, regardless of whether the person claims to not be subject
17-19    to this chapter.
17-20          Sec. 348.516.  PAYMENT OF EXAMINATION COSTS AND
17-21    ADMINISTRATION EXPENSES.  A license holder shall pay to the
17-22    commissioner an amount determined as provided by Section 14.107 and
17-23    assessed by the commissioner to cover the direct and indirect costs
17-24    of an examination and a proportionate share of general
17-25    administrative expenses.
17-26          Sec. 348.517.  LICENSE HOLDER'S RECORDS.  (a)  A license
 18-1    holder shall maintain a record of each retail installment
 18-2    transaction made under this chapter as is necessary to enable the
 18-3    commissioner to determine whether the license holder is complying
 18-4    with this chapter.
 18-5          (b)  A license holder shall keep the record until the later
 18-6    of:
 18-7                (1)  the third anniversary of the date the last payment
 18-8    was made on the retail installment transaction; or
 18-9                (2)  the second anniversary of the date on which the
18-10    final entry is made in the record.
18-11          (c)  A record described by Subsection (a)  must be prepared
18-12    in accordance with accepted accounting practices.
18-13          (d)  The commissioner shall accept a license holder's system
18-14    of records if the system discloses the information reasonably
18-15    required under Subsection (a).
18-16          (e)  A license holder shall keep each obligation signed by a
18-17    retail buyer at an office in this state designated by the license
18-18    holder unless the obligation is transferred under an agreement that
18-19    gives the commissioner access to the obligation.
18-20          Sec. 348.518.  SHARING OF INFORMATION.  To ensure consistent
18-21    enforcement of law and minimization of regulatory burdens, the
18-22    commissioner and the Texas Department of Transportation may share
18-23    information, including criminal history information, relating to a
18-24    person licensed under this chapter.  Information otherwise
18-25    confidential remains confidential after it is shared under this
18-26    section.
 19-1          SECTION 15.  Section 371.055, Finance Code, is amended to
 19-2    read as follows:
 19-3          Sec. 371.055.  FEES; PROOF OF INSURANCE.  An applicant must
 19-4    submit with the application:
 19-5                (1)  an investigation fee of:
 19-6                      (A)  $500 if the applicant does not hold a
 19-7    license; or
 19-8                      (B)  $250 if the application:
 19-9                            (i)  is for an additional license for a
19-10    separate location; or
19-11                            (ii)  involves substantially identical
19-12    principals and owners of a licensed pawnshop at a separate
19-13    location;
19-14                (2)  an annual fee in an amount determined as provided
19-15    by Section 14.107 [of $100]; and
19-16                (3)  proof of general liability and fire insurance in a
19-17    reasonable amount and form required by the commissioner.
19-18          SECTION 16.  Subsection (a), Section 371.064, Finance Code,
19-19    is amended to read as follows:
19-20          (a)  Not later than December 1, a pawnbroker shall pay to the
19-21    commissioner for each license held an annual fee in an amount
19-22    determined as provided by Section 14.107 [of $125] for the year
19-23    beginning the next January 1.
19-24          SECTION 17.  Subsection (c), Section 371.159, Finance Code,
19-25    is amended to read as follows:
19-26          (c)  A pawn service charge may not exceed an amount equal to:
 20-1                (1)  20 percent of the total amount financed for one
 20-2    month if that amount is less than or equal to the amount computed
 20-3    under Subchapter C, Chapter 341, using the reference amount of $30;
 20-4                (2)  15 percent of the total amount financed for one
 20-5    month if that amount is more than the amount computed for
 20-6    Subdivision (1) but less than or equal to the amount computed under
 20-7    Subchapter C, Chapter 341, using the reference amount of $200
 20-8    [$100];
 20-9                (3)  2 1/2 percent of the total amount financed for one
20-10    month if that amount is more than the amount computed for
20-11    Subdivision (2) but less than or equal to the amount computed under
20-12    Subchapter C, Chapter 341, using the reference  amount of $300; or
20-13                (4)  1 percent of the total amount financed for one
20-14    month if that amount is more than the amount computed for
20-15    Subdivision (3).
20-16          SECTION 18.  Section 371.169, Finance Code, is amended to
20-17    read as follows:
20-18          Sec. 371.169.  UNREDEEMED PLEDGED GOODS; FORFEITURE.  (a)  A
20-19    pawnbroker shall hold pledged goods not redeemed by the pledgor on
20-20    or before the maturity date stated in the pawn ticket issued in
20-21    connection with a pawn transaction for at least 30 [60] days after
20-22    that date.
20-23          (b)  On or before the 30th [60th] day after the original
20-24    maturity date, the pledgor may redeem the pledged goods by paying:
20-25                (1)  the originally agreed redemption price; and
20-26                (2)  an additional pawn service charge equal to
 21-1    one-thirtieth of the original monthly pawn service charge for each
 21-2    day after the original maturity date, including the day on which
 21-3    the pledged goods are finally redeemed.
 21-4          (c)  Pledged goods not redeemed on or before the 30th [60th]
 21-5    day after the original maturity date may, at the option of the
 21-6    pawnbroker, be forfeited to the pawnbroker.
 21-7          SECTION 19.  Subsection (a), Section 411.095, Government
 21-8    Code, is amended to read as follows:
 21-9          (a)  The consumer credit commissioner is entitled to obtain
21-10    from the department criminal history record information that
21-11    relates to a person who is[:]
21-12                [(1)]  an applicant for or holder of a license under
21-13    Chapter 348 or 371, Finance Code[; or]
21-14                [(2)  the holder of a license under that Act].
21-15          SECTION 20.  Section 371.065, Finance Code, is repealed.
21-16          SECTION 21.  Sections 348.401 and 348.402, Finance Code, are
21-17    repealed.
21-18          SECTION 22.  The Finance Commission of Texas and the consumer
21-19    credit commissioner shall conduct a study of mortgage lending
21-20    practices with emphasis on identifying possible predatory and
21-21    discriminating lending patterns or practices.  In conducting the
21-22    study, the agencies shall collect data from entities making
21-23    mortgage loans about mortgage loans using the data formats of the
21-24    Home Mortgage Disclosure Act of 1975 (12 U.S.C. Section 2801 et
21-25    seq.) and other data fields necessary to identify possible
21-26    predatory practices.  In conducting the study, the agencies shall
 22-1    also study and consider parameters that could be used to
 22-2    consistently classify credit risk among mortgage loans for the
 22-3    purpose of assessing possible predatory or discriminatory lending
 22-4    practices.  The agencies shall prepare a report detailing the
 22-5    findings and recommendations resulting from the study and deliver
 22-6    the report to the lieutenant governor, the speaker of the house of
 22-7    representatives, and legislative committees dealing with lending
 22-8    entities before December 1, 2002.
 22-9          SECTION 23.  This Act takes effect September 1, 2001, except:
22-10                (1)  Section 21 of this Act takes effect September 1,
22-11    2002; and
22-12                (2)  the requirement that a person hold a license under
22-13    Subchapter F, Chapter 348, Finance Code, as added by this Act,
22-14    applies only on and after September 1, 2002.