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  S.B. No. 1620
 
 
 
 
AN ACT
  relating to examinations by the consumer credit commissioner with
  regard to the regulation of property tax lenders and certain other
  lenders and debt management counselors.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 351.004, Finance Code, as added by
  Chapter 1220 (H.B. 2138), Acts of the 80th Legislature, Regular
  Session, 2007, is amended to read as follows:
         Sec. 351.004.  AFFILIATED BUSINESS ARRANGEMENTS. A property
  tax lender may conduct business under this chapter in an office,
  office suite, room, or place of business in which any other business
  is conducted or in combination with any other business unless the
  commissioner:
               (1)  determines after a hearing that the conduct of the
  other business in that office, office suite, room, or place of
  business has concealed an evasion of this chapter; and
               (2)  orders the lender in writing to desist from the
  conduct of the other business in that office, office suite, room, or
  place of business [This chapter may not be construed to prevent
  affiliated or controlled business arrangements or loan origination
  services by or between a property tax lender and other
  professionals].
         SECTION 2.  Subchapter A, Chapter 351, Finance Code, as
  added by Chapter 1220 (H.B. 2138), Acts of the 80th Legislature,
  Regular Session, 2007, is amended by adding Sections 351.008
  through 351.011 to read as follows:
         Sec. 351.008.  EXAMINATION OF LENDERS; ACCESS TO RECORDS.  
  (a)  The commissioner or the commissioner's representative shall,
  at the times the commissioner or the representative considers
  necessary:
               (1)  examine each place of business of each property
  tax lender; and
               (2)  investigate the lender's transactions, including
  loans, and records, including books, accounts, papers, and
  correspondence, to the extent the transactions and records pertain
  to the business regulated under this chapter and Sections 32.06 and
  32.065, Tax Code.
         (b)  The property tax lender shall:
               (1)  give the commissioner or the commissioner's
  representative free access to the lender's office, place of
  business, files, safes, and vaults; and
               (2)  allow the commissioner or the representative to
  make a copy of an item that may be investigated under Subsection
  (a)(2).
         (c)  During an examination, the commissioner or the
  commissioner's representative may administer oaths and examine any
  person under oath on any subject pertinent to a matter that the
  commissioner or the representative is authorized or required to
  consider, investigate, or secure information about under this
  chapter or Section 32.06 or 32.065, Tax Code.
         (d)  Information obtained under this section is
  confidential.
         (e)  A property tax lender's violation of Subsection (b) is a
  ground for the suspension or revocation of the lender's license.
         Sec. 351.009.  GENERAL INVESTIGATION. (a)  To discover a
  violation of this chapter or Section 32.06 or 32.065, Tax Code, or
  to obtain information required under this chapter or Section 32.06
  or 32.065, Tax Code, the commissioner or the commissioner's
  representative may investigate the records, including books,
  accounts, papers, and correspondence, of a person, including a
  property tax lender, who the commissioner or the representative has
  reasonable cause to believe is violating this chapter or Section
  32.06 or 32.065, Tax Code, regardless of whether the person claims
  to not be subject to this chapter or Section 32.06 or 32.065, Tax
  Code.
         (b)  For the purposes of this section, a person who
  advertises, solicits, or otherwise represents that the person is
  willing to make a property tax loan is presumed to be engaged in the
  business described by Section 351.051.
         Sec. 351.010.  REFUSAL TO ALLOW EXAMINATION OR INSPECTION.  
  A property tax lender who fails or refuses to permit an examination
  or investigation authorized by this subchapter violates this
  chapter. The failure or refusal is grounds for the suspension or
  revocation of the lender's license.
         Sec. 351.011.  VERIFICATION OF NET ASSETS.  If the
  commissioner questions the amount of a property tax lender's net
  assets, the commissioner may require certification by an
  independent certified public accountant that:
               (1)  the accountant has reviewed the property tax
  lender's books, other records, and transactions during the
  reporting year;
               (2)  the books and other records are maintained using
  generally accepted accounting principles; and
               (3)  the property tax lender meets the net assets
  requirement of Section 351.153.
         SECTION 3.  Subchapter E, Chapter 14, Finance Code, is
  amended by adding Section 14.2015 to read as follows:
         Sec. 14.2015.  CONFIDENTIALITY OF CERTAIN INFORMATION.
  (a)  Except as provided by Subsection (b), information or material
  obtained or compiled by the commissioner in relation to an
  examination by the commissioner or the commissioner's
  representative of a license holder or registrant under Subtitle B
  or C, Title 4, or Chapter 394 is confidential and may not be
  disclosed by the commissioner or an officer or employee of the
  Office of Consumer Credit Commissioner, including:
               (1)  information obtained from a license holder or
  registrant under Subtitle B or C, Title 4, or Chapter 394;
               (2)  work performed by the commissioner or the
  commissioner's representative on information obtained from a
  license holder or registrant for the purposes of an examination
  conducted under Subtitle B or C, Title 4, or Chapter 394;
               (3)  a report on an examination of a license holder or
  registrant conducted under Subtitle B or C, Title 4, or Chapter 394;
  and
               (4)  any written communications between the license
  holder or registrant, as applicable, and the commissioner or the
  commissioner's representative relating to or referencing an
  examination conducted under Subtitle B or C, Title 4, or Chapter
  394.
         (b)  The commissioner or the commissioner's representative
  may disclose the confidential information or material described by
  Subsection (a):
               (1)  to a department, agency, or instrumentality of
  this state or the United States if the commissioner considers
  disclosure to be necessary or proper to the enforcement of the laws
  of this state or the United States and in the best interest of the
  public;
               (2)  if the license holder or registrant consents to
  the release of the information or has published the information
  contained in the release; or
               (3)  if the commissioner determines that release of the
  information is required for an administrative hearing.
         SECTION 4.  Subsection (a-4), Section 32.06, Tax Code, is
  amended to read as follows:
         (a-4)  The Finance Commission of Texas shall:
               (1)  prescribe the form and content of an appropriate
  disclosure statement to be provided to a property owner before the
  execution of a tax lien transfer; [and]
               (2)  adopt rules relating to the reasonableness of
  closing costs, fees, and other charges permitted under this
  section; and
               (3)  by rule prescribe the form and content of the sworn
  document under Subsection (a-1) and the certified statement under
  Subsection (b).
         SECTION 5.  This Act takes effect September 1, 2009.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1620 passed the Senate on
  April 23, 2009, by the following vote: Yeas 30, Nays 0; and that
  the Senate concurred in House amendment on June 1, 2009, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1620 passed the House, with
  amendment, on May 26, 2009, by the following vote: Yeas 140,
  Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor