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