1-1 By: Sibley S.B. No. 317
1-2 (In the Senate - Filed March 7, 2001; March 8, 2001, read
1-3 first time and referred to Committee on Business and Commerce;
1-4 April 2, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 5, Nays 0, 1 present, not
1-6 voting; April 2, 2001, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 317 By: Sibley
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to continuation and functions of the Office of Consumer
1-11 Credit Commissioner and the regulation of certain financial
1-12 businesses.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Section 14.056, Finance Code, is amended to read
1-15 as follows:
1-16 Sec. 14.056. CONFLICT OF INTEREST. (a) In this section,
1-17 "Texas trade association" means a cooperative and voluntarily
1-18 joined association of business or professional competitors in this
1-19 state designed to assist its members and its industry or profession
1-20 in dealing with mutual business or professional problems and in
1-21 promoting their common interest.
1-22 (b) A person may not be an employee of the office employed
1-23 in a "bona fide executive, administrative, or professional
1-24 capacity," as that phrase is used for purposes of establishing an
1-25 exemption to the overtime provisions of the federal Fair Labor
1-26 Standards Act of 1938 (29 U.S.C. Section 201 et seq.), and its
1-27 subsequent amendments, if:
1-28 (1) the person is an officer, employee, or paid
1-29 consultant of a Texas trade association in an industry regulated by
1-30 the office; or
1-31 (2) the person's spouse is an officer, manager, or
1-32 paid consultant of a Texas trade association in an industry
1-33 regulated by the office.
1-34 (c) A person may not act as the general counsel to the
1-35 office if the person is required to register as a lobbyist under
1-36 Chapter 305, Government Code, because of the person's activities
1-37 for compensation on behalf of a profession related to the operation
1-38 of [The commissioner or an assistant commissioner, examiner, or
1-39 other employee of the office may not be an officer, employee, or
1-40 paid consultant of a trade association in an industry regulated by]
1-41 the office.
1-42 SECTION 2. Section 14.058, Finance Code, is amended to read
1-43 as follows:
1-44 Sec. 14.058. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
1-45 commissioner or the commissioner's designee shall prepare and
1-46 maintain a written policy statement that implements a program of
1-47 equal employment opportunity to ensure that all personnel decisions
1-48 are made without regard to race, color, disability, sex, religion,
1-49 age, or national origin.
1-50 (b) The policy statement must include:
1-51 (1) personnel policies, including policies relating to
1-52 recruitment, evaluation, selection, training, and promotion of
1-53 personnel, that show the intent of the office to avoid the unlawful
1-54 employment practices described by Chapter 21, Labor Code; and
1-55 (2) an analysis of the extent to which the composition
1-56 of the office's personnel is in accordance with state and federal
1-57 law and a description of reasonable methods to achieve compliance
1-58 with state and federal law.
1-59 (c) The policy statement must:
1-60 (1) be updated annually;
1-61 (2) be reviewed by the state Commission on Human
1-62 Rights for compliance with Subsection (b)(1); and
1-63 (3) be filed with the governor's office [plan to
1-64 ensure implementation of a program of equal employment opportunity
2-1 under which all personnel transactions are made without regard to
2-2 race, color, disability, sex, religion, age, or national origin.
2-3 The plan must include:]
2-4 [(1) a comprehensive analysis of the office's
2-5 workforce by race, sex, ethnic origin, class of position, and
2-6 salary or wage;]
2-7 [(2) plans for recruitment, evaluation, selection,
2-8 appointment, training, promotion, and other personnel policies;]
2-9 [(3) steps reasonably designed to overcome any
2-10 identified underutilization of minorities and women in the office's
2-11 workforce; and]
2-12 [(4) objectives and goals, timetables for achieving
2-13 those objectives and goals, and assignment of responsibility for
2-14 their achievement.]
2-15 [(b) The plan must cover an annual period and the
2-16 commissioner shall update it at least annually.]
2-17 [(c) The office shall submit a plan progress report to the
2-18 governor's office not later than the 30th day after November 1 and
2-19 April 1 of each year and shall include in the report steps the
2-20 office has taken during the reporting period to comply with
2-21 requirements of this section].
2-22 SECTION 3. Section 14.062, Finance Code, is amended to read
2-23 as follows:
2-24 Sec. 14.062. CONSUMER INFORMATION AND COMPLAINTS. (a) The
2-25 office shall maintain a file on each written complaint filed with
2-26 the office. The file must include:
2-27 (1) the name of the person who filed the complaint;
2-28 (2) the date the complaint is received by the office;
2-29 (3) the subject matter of the complaint;
2-30 (4) the name of each person contacted in relation to
2-31 the complaint;
2-32 (5) a summary of the results of the review or
2-33 investigation of the complaint; and
2-34 (6) an explanation of the reason the file was closed,
2-35 if the office closed the file without taking action other than to
2-36 investigate the complaint.
2-37 (b) The office shall provide to the person filing the
2-38 complaint and to each person who is a subject of the complaint a
2-39 copy of the office's policies and procedures relating to complaint
2-40 investigation and resolution.
2-41 (c) The office, at least quarterly until final disposition
2-42 of the complaint, shall notify the person filing the complaint and
2-43 each person who is a subject of the complaint of the status of the
2-44 investigation [commissioner shall keep an information file about
2-45 each complaint filed with the office relating to a license holder
2-46 or other lender regulated by the office under this chapter or Title
2-47 4 or 5.]
2-48 [(b) At least quarterly until final disposition of any
2-49 written complaint filed with the office relating to a license
2-50 holder or other lender regulated by the office, the commissioner
2-51 shall notify the parties to the complaint of the status of the
2-52 complaint] unless the notice would jeopardize an undercover
2-53 investigation.
2-54 SECTION 4. Section 14.066, Finance Code, is amended to read
2-55 as follows:
2-56 Sec. 14.066. SUNSET PROVISION. The office is subject to
2-57 Chapter 325, Government Code (Texas Sunset Act). Unless continued
2-58 in existence as provided by that chapter, the office is abolished
2-59 September 1, 2013 [2001].
2-60 SECTION 5. Subchapter B, Chapter 14, Finance Code, is
2-61 amended by adding Section 14.067 to read as follows:
2-62 Sec. 14.067. EMPLOYEE INCENTIVE PROGRAM. The commissioner
2-63 or the commissioner's designee shall provide to agency employees
2-64 information and training on the benefits and methods of
2-65 participation in the state employee incentive program.
2-66 SECTION 6. Section 14.106, Finance Code, is amended to read
2-67 as follows:
2-68 Sec. 14.106. INFORMATION [PROCEDURES] REGARDING EMPLOYMENT
2-69 REQUIREMENTS [STANDARDS OF CONDUCT]. The commissioner or the
3-1 commissioner's designee shall provide to agency employees, as often
3-2 as necessary, information regarding the requirements for employment
3-3 under this chapter, including information regarding a person's
3-4 responsibilities under applicable laws relating to standards of
3-5 conduct for state employees [shall develop a procedure to ensure
3-6 that a person holding the position of commissioner and each
3-7 assistant commissioner, examiner, and other employee of the office
3-8 is informed of the standards of conduct required by law for a state
3-9 official or employee].
3-10 SECTION 7. Section 14.107, Finance Code, is amended to read
3-11 as follows:
3-12 Sec. 14.107. FEES. (a) The finance commission
3-13 [commissioner] shall establish reasonable and necessary fees for
3-14 carrying out the commissioner's powers and duties under this
3-15 chapter, Title 4, and Chapters 371, 392, and 394 and under Chapters
3-16 38-41, Business & Commerce Code.
3-17 (b) The finance commission by rule shall set the fees for
3-18 licensing and examination under Chapter 342, 348, or 371 at amounts
3-19 or rates necessary to recover the costs of administering those
3-20 chapters. The rules may provide that the amount of a fee charged
3-21 to a license holder is based on the volume of the license holder's
3-22 regulated business and other key factors. The commissioner may
3-23 provide for collection of a single annual fee from a person
3-24 licensed under Chapter 342, 348, or 371 to include amounts due for
3-25 both licensing and examination.
3-26 SECTION 8. Section 341.001, Finance Code, is amended to read
3-27 as follows:
3-28 Sec. 341.001. DEFINITIONS. In this subtitle:
3-29 (1) "Authorized lender" means a person who holds a
3-30 license issued under Chapter 342, a bank, or a savings association.
3-31 (2) "Bank" means a person:
3-32 (A) organized as a state bank under Subtitle A,
3-33 Title 3, or under similar laws of another state if the deposits of
3-34 a bank from another state are insured by the Federal Deposit
3-35 Insurance Corporation; or
3-36 (B) organized as a national bank under 12 U.S.C.
3-37 Section 21 et seq., as subsequently amended.
3-38 (3) "Cash advance" means the total of the amount of
3-39 cash or its equivalent that the borrower receives and the amount
3-40 that is paid at the borrower's direction or request, on the
3-41 borrower's behalf, or for the borrower's benefit.
3-42 (4) "Commissioner" means the consumer credit
3-43 commissioner.
3-44 (5) "Credit union" means a person:
3-45 (A) doing business under Subtitle D, Title 3; or
3-46 (B) organized under the Federal Credit Union Act
3-47 (12 U.S.C. Section 1751 et seq.), as subsequently amended.
3-48 (6) "Deferred presentment transaction" means a
3-49 transaction in which:
3-50 (A) a cash advance is made in exchange for a
3-51 personal check or authorization to debit a deposit account;
3-52 (B) the amount of the check or authorized debit
3-53 equals the amount of the advance plus a fee; and
3-54 (C) the person making the advance agrees that
3-55 the check will not be cashed or deposited or the authorized debit
3-56 will not be made until a designated future date.
3-57 (7) "Finance commission" means the Finance Commission
3-58 of Texas or a subcommittee created by rule of the Finance
3-59 Commission of Texas.
3-60 (8) [(7)] "Interest" has the meaning assigned by
3-61 Section 301.002 [301.001].
3-62 (9) [(8)] "Savings association" means a person:
3-63 (A) organized as a state savings and loan
3-64 association or savings bank under Subtitle B or C, Title 3, or
3-65 under similar laws of another state if the deposits of the savings
3-66 association from another state are insured by the Federal Deposit
3-67 Insurance Corporation; or
3-68 (B) organized as a federal savings and loan
3-69 association or savings bank under the Home Owners' Loan Act (12
4-1 U.S.C. Section 1461 et seq.), as subsequently amended.
4-2 SECTION 9. Section 341.403, Finance Code, is amended by
4-3 adding Subsections (c) and (d) to read as follows:
4-4 (c) The finance commission may not adopt rules restricting
4-5 advertising or competitive bidding by a license holder regulated by
4-6 the Office of Consumer Credit Commissioner except to prohibit
4-7 false, misleading, or deceptive practices.
4-8 (d) In its rules to prohibit false, misleading, or deceptive
4-9 practices, the finance commission may not include a rule that:
4-10 (1) restricts the use of any medium for advertising;
4-11 (2) restricts the use of a license holder's personal
4-12 appearance or voice in an advertisement;
4-13 (3) relates to the size or duration of an
4-14 advertisement by the license holder; or
4-15 (4) restricts the license holder's advertisement under
4-16 a trade name, unless the trade name is deceptive.
4-17 SECTION 10. Chapter 341, Finance Code, is amended by adding
4-18 Subchapter F to read as follows:
4-19 SUBCHAPTER F. LICENSING AND REGULATION IN GENERAL
4-20 Sec. 341.501. STAGGERED RENEWAL. The finance commission by
4-21 rule may adopt a system under which licenses under this subtitle
4-22 expire on various dates during the year. For the year in which the
4-23 license expiration date is changed, the Office of Consumer Credit
4-24 Commissioner shall prorate license fees on a monthly basis so that
4-25 each license holder pays only that portion of the license fee that
4-26 is allocable to the number of months during which the license is
4-27 valid. On renewal of the license on the new expiration date, the
4-28 total license renewal fee is payable.
4-29 Sec. 341.502. FORM OF LOAN CONTRACT. (a) A contract for a
4-30 loan under Chapter 342, a retail installment transaction under
4-31 Chapter 348, or a home equity loan regulated by the Office of
4-32 Consumer Credit Commissioner, whether in English or Spanish, must
4-33 be written in plain language designed to be easily understood by
4-34 the average consumer. The contract must be printed in an easily
4-35 readable font and type size.
4-36 (b) The finance commission shall adopt rules governing the
4-37 form of contracts to which this section applies. The rules must
4-38 include model contracts complying with the rules and this section.
4-39 (c) A person governed by this section is not required to use
4-40 a model contract. The person, however, may not use a contract
4-41 other than a model contract unless the person has submitted the
4-42 contract to the commissioner. The commissioner shall issue an
4-43 order disapproving the contract if the commissioner determines that
4-44 the contract does not comply with this section or rules adopted
4-45 under this section.
4-46 (d) The person may begin using a contract submitted under
4-47 Subsection (c) on the date it is submitted for approval. If the
4-48 commissioner issues an order disapproving the contract, the person
4-49 may not use the contract after the order takes effect.
4-50 (e) A person may not represent that the commissioner's
4-51 approval or failure to disapprove a contract constitutes an
4-52 endorsement of the contract by the commissioner, the Office of
4-53 Consumer Credit Commissioner, or the finance commission.
4-54 SECTION 11. Subchapter A, Chapter 342, Finance Code, is
4-55 amended by adding Sections 342.007 and 342.008 to read as follows:
4-56 Sec. 342.007. DEFERRED PRESENTMENT TRANSACTION. The finance
4-57 commission shall adopt rules providing for the regulation of
4-58 deferred presentment transactions.
4-59 Sec. 342.008. ATTEMPT TO EVADE LAW. A person who is a party
4-60 to a deferred presentment transaction may not evade the application
4-61 of this subtitle or a rule adopted under this section by use of any
4-62 device, subterfuge, or pretense.
4-63 SECTION 12. Subsection (c), Section 342.101, Finance Code,
4-64 is amended to read as follows:
4-65 (c) On the filing of each license application, the applicant
4-66 shall pay to the commissioner for the license's year of issuance a
4-67 license fee in an amount determined as provided by Section 14.107
4-68 [of:]
4-69 [(1) $100 if the license is granted not later than
5-1 June 30; or]
5-2 [(2) $50 if the license is granted after June 30].
5-3 SECTION 13. Section 342.154, Finance Code, is amended to
5-4 read as follows:
5-5 Sec. 342.154. ANNUAL LICENSE FEE. [(a)] Not later than
5-6 December 1, a license holder shall pay to the commissioner for each
5-7 license held an annual fee for the year beginning the next January
5-8 1, in an amount determined as provided by Section 14.107.
5-9 [(b) The annual fee for a license under this chapter is $200
5-10 except that if, on September 30 preceding the date on which the
5-11 annual fee is due, the gross unpaid balance of loans regulated
5-12 under this chapter in the office for which the license is issued is
5-13 $100,000 or less, the annual fee is $100.]
5-14 SECTION 14. Chapter 348, Finance Code, is amended by adding
5-15 Subchapter F to read as follows:
5-16 SUBCHAPTER F. LICENSING; ADMINISTRATION OF CHAPTER
5-17 Sec. 348.501. LICENSE REQUIRED. (a) A person may not act
5-18 as a holder under this chapter unless the person:
5-19 (1) is an authorized lender or a credit union; or
5-20 (2) holds a license issued under this chapter.
5-21 (b) A person may not use any device, subterfuge, or pretense
5-22 to evade the application of this section.
5-23 Sec. 348.502. APPLICATION REQUIREMENTS. (a) The
5-24 application for a license under this chapter must:
5-25 (1) be under oath;
5-26 (2) identify the applicant's principal parties in
5-27 interest; and
5-28 (3) contain other relevant information that the
5-29 commissioner requires.
5-30 (b) On the filing of a license application, the applicant
5-31 shall pay to the commissioner:
5-32 (1) an investigation fee of $200; and
5-33 (2) for the license's year of issuance, a license fee
5-34 in an amount determined as provided by Section 14.107.
5-35 Sec. 348.503. INVESTIGATION OF APPLICATION. On the filing
5-36 of an application and payment of the required fees, the
5-37 commissioner shall conduct an investigation to determine whether to
5-38 issue the license.
5-39 Sec. 348.504. APPROVAL OR DENIAL OF APPLICATION. (a) The
5-40 commissioner shall approve the application and issue to the
5-41 applicant a license under this chapter if the commissioner finds
5-42 that:
5-43 (1) the financial responsibility, experience,
5-44 character, and general fitness of the applicant are sufficient to:
5-45 (A) command the confidence of the public; and
5-46 (B) warrant the belief that the business will be
5-47 operated lawfully and fairly, within the purposes of this chapter;
5-48 and
5-49 (2) the forms and contracts to be used by the
5-50 applicant are appropriate and adequate to protect the interests of
5-51 retail buyers.
5-52 (b) If the commissioner does not find the eligibility
5-53 requirements of Subsection (a), the commissioner shall notify the
5-54 applicant.
5-55 (c) If an applicant requests a hearing on the application
5-56 not later than the 30th day after the date of notification under
5-57 Subsection (b), the applicant is entitled to a hearing not later
5-58 than the 60th day after the date of the request.
5-59 (d) The commissioner shall approve or deny the application
5-60 not later than the 60th day after the date of the filing of a
5-61 completed application with payment of the required fees, or if a
5-62 hearing is held, after the date of the completion of the hearing on
5-63 the application. The commissioner and the applicant may agree to a
5-64 later date in writing.
5-65 Sec. 348.505. DISPOSITION OF FEES ON DENIAL OF APPLICATION.
5-66 If the commissioner denies the application, the commissioner shall
5-67 retain the investigation fee and shall return to the applicant the
5-68 license fee submitted with the application.
5-69 Sec. 348.506. ANNUAL LICENSE FEE. Not later than December
6-1 1, a license holder shall pay to the commissioner for each license
6-2 held an annual fee for the year beginning the next January 1, in an
6-3 amount determined as provided by Section 14.107.
6-4 Sec. 348.507. EXPIRATION OF LICENSE ON FAILURE TO PAY ANNUAL
6-5 FEE. If the annual fee for a license is not paid before the 16th
6-6 day after the date on which the written notice of delinquency of
6-7 payment has been given to the license holder, the license expires
6-8 on the later of:
6-9 (1) that day; or
6-10 (2) December 31 of the last year for which an annual
6-11 fee was paid.
6-12 Sec. 348.508. LICENSE SUSPENSION OR REVOCATION. After
6-13 notice and a hearing the commissioner may suspend or revoke a
6-14 license if the commissioner finds that:
6-15 (1) the license holder failed to pay the annual
6-16 license fee, an examination fee, an investigation fee, or another
6-17 charge imposed by the commissioner;
6-18 (2) the license holder, knowingly or without the
6-19 exercise of due care, violated this chapter or a rule adopted or
6-20 order issued under this chapter; or
6-21 (3) a fact or condition exists that, if it had existed
6-22 or had been known to exist at the time of the original application
6-23 for the license, clearly would have justified the commissioner's
6-24 denial of the application.
6-25 Sec. 348.509. REINSTATEMENT OF SUSPENDED LICENSE; ISSUANCE
6-26 OF NEW LICENSE AFTER REVOCATION. The commissioner may reinstate a
6-27 suspended license or issue a new license on application to a person
6-28 whose license has been revoked if at the time of the reinstatement
6-29 or issuance no fact or condition exists that clearly would have
6-30 justified the commissioner's denial of an original application for
6-31 the license.
6-32 Sec. 348.510. SURRENDER OF LICENSE. A license holder may
6-33 surrender a license issued under this chapter by delivering to the
6-34 commissioner:
6-35 (1) the license; and
6-36 (2) a written notice of the license's surrender.
6-37 Sec. 348.511. EFFECT OF LICENSE SUSPENSION, REVOCATION, OR
6-38 SURRENDER. (a) The suspension, revocation, or surrender of a
6-39 license issued under this chapter does not affect the obligation of
6-40 a contract between the license holder and a retail buyer entered
6-41 into before the suspension, revocation, or surrender.
6-42 (b) Surrender of a license does not affect the license
6-43 holder's civil or criminal liability for an act committed before
6-44 surrender.
6-45 Sec. 348.512. TRANSFER OR ASSIGNMENT OF LICENSE. A license
6-46 may be transferred or assigned only with the approval of the
6-47 commissioner.
6-48 Sec. 348.513. ADOPTION OF RULES. (a) The finance
6-49 commission may adopt rules to enforce this chapter.
6-50 (b) The commissioner shall recommend proposed rules to the
6-51 finance commission.
6-52 Sec. 348.514. EXAMINATION; ACCESS TO RECORDS. (a) At the
6-53 times the commissioner considers necessary, the commissioner or the
6-54 commissioner's representative shall:
6-55 (1) examine each place of business of each license
6-56 holder; and
6-57 (2) investigate the license holder's transactions and
6-58 records, including books, accounts, papers, and correspondence, to
6-59 the extent the transactions and records pertain to the business
6-60 regulated under this chapter.
6-61 (b) The license holder shall:
6-62 (1) give the commissioner or the commissioner's
6-63 representative free access to the license holder's office, place of
6-64 business, files, safes, and vaults; and
6-65 (2) allow the commissioner or the commissioner's
6-66 representative to make a copy of an item that may be investigated
6-67 under Subsection (a)(2).
6-68 (c) During an examination the commissioner or the
6-69 commissioner's representative may administer oaths and examine any
7-1 person under oath on any subject pertinent to a matter that the
7-2 commissioner is authorized or required to consider, investigate, or
7-3 secure information about under this chapter.
7-4 (d) Information obtained under this section is confidential.
7-5 (e) A license holder's violation of Subsection (b) is a
7-6 ground for the suspension or revocation of the license.
7-7 (f) An examination of a license holder's place of business
7-8 may be made only:
7-9 (1) after advance notice; and
7-10 (2) during normal business hours.
7-11 Sec. 348.515. GENERAL INVESTIGATION. To discover a
7-12 violation of this chapter or to obtain information required under
7-13 this chapter, the commissioner or the commissioner's representative
7-14 may investigate the records, including books, accounts, papers, and
7-15 correspondence, of a person, including a license holder, who the
7-16 commissioner has reasonable cause to believe is violating this
7-17 chapter, regardless of whether the person claims to not be subject
7-18 to this chapter.
7-19 Sec. 348.516. PAYMENT OF EXAMINATION COSTS AND
7-20 ADMINISTRATION EXPENSES. A license holder shall pay to the
7-21 commissioner an amount determined as provided by Section 14.107 and
7-22 assessed by the commissioner to cover the direct and indirect costs
7-23 of an examination and a proportionate share of general
7-24 administrative expenses.
7-25 Sec. 348.517. LICENSE HOLDER'S RECORDS. (a) A license
7-26 holder shall maintain a record of each retail installment
7-27 transaction made under this chapter as is necessary to enable the
7-28 commissioner to determine whether the license holder is complying
7-29 with this chapter.
7-30 (b) A license holder shall keep the record until the later
7-31 of:
7-32 (1) the third anniversary of the date the last payment
7-33 was made on the retail installment transaction; or
7-34 (2) the second anniversary of the date on which the
7-35 final entry is made in the record.
7-36 (c) A record described by Subsection (a) must be prepared
7-37 in accordance with accepted accounting practices.
7-38 (d) The commissioner shall accept a license holder's system
7-39 of records if the system discloses the information reasonably
7-40 required under Subsection (a).
7-41 (e) A license holder shall keep each obligation signed by a
7-42 retail buyer at an office in this state designated by the license
7-43 holder unless the obligation is transferred under an agreement that
7-44 gives the commissioner access to the obligation.
7-45 Sec. 348.518. SHARING OF INFORMATION. To ensure consistent
7-46 enforcement of law and minimization of regulatory burdens, the
7-47 commissioner and the Texas Department of Transportation may share
7-48 information, including criminal history information, relating to a
7-49 person licensed under this chapter. Information otherwise
7-50 confidential remains confidential after it is shared under this
7-51 section.
7-52 SECTION 15. Section 371.055, Finance Code, is amended to
7-53 read as follows:
7-54 Sec. 371.055. FEES; PROOF OF INSURANCE. An applicant must
7-55 submit with the application:
7-56 (1) an investigation fee of:
7-57 (A) $500 if the applicant does not hold a
7-58 license; or
7-59 (B) $250 if the application:
7-60 (i) is for an additional license for a
7-61 separate location; or
7-62 (ii) involves substantially identical
7-63 principals and owners of a licensed pawnshop at a separate
7-64 location;
7-65 (2) an annual fee in an amount determined as provided
7-66 by Section 14.107 [of $100]; and
7-67 (3) proof of general liability and fire insurance in a
7-68 reasonable amount and form required by the commissioner.
7-69 SECTION 16. Subsection (a), Section 371.064, Finance Code,
8-1 is amended to read as follows:
8-2 (a) Not later than December 1, a pawnbroker shall pay to the
8-3 commissioner for each license held an annual fee in an amount
8-4 determined as provided by Section 14.107 [of $125] for the year
8-5 beginning the next January 1.
8-6 SECTION 17. Subsection (c), Section 371.159, Finance Code,
8-7 is amended to read as follows:
8-8 (c) A pawn service charge may not exceed an amount equal to:
8-9 (1) 20 percent of the total amount financed for one
8-10 month if that amount is less than or equal to the amount computed
8-11 under Subchapter C, Chapter 341, using the reference amount of $30;
8-12 (2) 15 percent of the total amount financed for one
8-13 month if that amount is more than the amount computed for
8-14 Subdivision (1) but less than or equal to the amount computed under
8-15 Subchapter C, Chapter 341, using the reference amount of $200
8-16 [$100];
8-17 (3) 2 1/2 percent of the total amount financed for one
8-18 month if that amount is more than the amount computed for
8-19 Subdivision (2) but less than or equal to the amount computed under
8-20 Subchapter C, Chapter 341, using the reference amount of $300; or
8-21 (4) 1 percent of the total amount financed for one
8-22 month if that amount is more than the amount computed for
8-23 Subdivision (3).
8-24 SECTION 18. Section 371.169, Finance Code, is amended to
8-25 read as follows:
8-26 Sec. 371.169. UNREDEEMED PLEDGED GOODS; FORFEITURE. (a) A
8-27 pawnbroker shall hold pledged goods not redeemed by the pledgor on
8-28 or before the maturity date stated in the pawn ticket issued in
8-29 connection with a pawn transaction for at least 30 [60] days after
8-30 that date.
8-31 (b) On or before the 30th [60th] day after the original
8-32 maturity date, the pledgor may redeem the pledged goods by paying:
8-33 (1) the originally agreed redemption price; and
8-34 (2) an additional pawn service charge equal to
8-35 one-thirtieth of the original monthly pawn service charge for each
8-36 day after the original maturity date, including the day on which
8-37 the pledged goods are finally redeemed.
8-38 (c) Pledged goods not redeemed on or before the 30th [60th]
8-39 day after the original maturity date may, at the option of the
8-40 pawnbroker, be forfeited to the pawnbroker.
8-41 SECTION 19. Subsection (a), Section 411.095, Government
8-42 Code, is amended to read as follows:
8-43 (a) The consumer credit commissioner is entitled to obtain
8-44 from the department criminal history record information that
8-45 relates to a person who is[:]
8-46 [(1)] an applicant for or holder of a license under
8-47 Chapter 348 or 371, Finance Code[; or]
8-48 [(2) the holder of a license under that Act].
8-49 SECTION 20. Section 371.065, Finance Code, is repealed.
8-50 SECTION 21. Sections 348.401 and 348.402, Finance Code, are
8-51 repealed.
8-52 SECTION 22. This Act takes effect September 1, 2001, except:
8-53 (1) Section 21 of this Act takes effect September 1,
8-54 2002; and
8-55 (2) the requirement that a person hold a license under
8-56 Subchapter F, Chapter 348, Finance Code, as added by this Act,
8-57 applies only on and after September 1, 2002.
8-58 * * * * *