Bill Text: TX HB3453 | 2011-2012 | 82nd Legislature | Enrolled

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Bill Title: Relating to the regulatory authority of the consumer credit commissioner and to fees and interest charged in connection with consumer credit transactions; authorizing an administrative penalty.

Sponsorship: Bipartisan Bill

Status: (Passed) 2011-06-17 - Effective on 9/1/11 [HB3453 Detail]

Download: Texas-2011-HB3453-Enrolled.html

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H.B. No. 3453

AN ACT
relating to the regulatory authority of the consumer credit
commissioner and to fees and interest charged in connection with
consumer credit transactions; authorizing an administrative
penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 14.2015, Finance Code, is amended 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 or investigation by the commissioner or the
commissioner's representative of a license holder, [or]
registrant, applicant, or other person 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, applicant, or other person examined or investigated
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, applicant, or other person for the
purposes of an examination or investigation conducted under
Subtitle B or C, Title 4, or Chapter 394;
(3) a report on an examination or investigation of a
license holder, [or] registrant, applicant, or other person
conducted under Subtitle B or C, Title 4, or Chapter 394; and
(4) any written communications between the license
holder, [or] registrant, applicant, or other person, as applicable,
and the commissioner or the commissioner's representative relating
to or referencing an examination or investigation 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, applicant,
or other person 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 2. Subchapter E, Chapter 14, Finance Code, is
amended by adding Section 14.2016 to read as follows:
Sec. 14.2016. INFORMATION SHARING WITH DEPARTMENTS AND
AGENCIES. To ensure consistent enforcement of law and minimization
of regulatory burdens, the commissioner may share information,
including criminal history or confidential information, relating
to a license holder, registrant, applicant, or other person
investigated or examined under the commissioner's authority with a
department, agency, or instrumentality of this state, another
state, or the United States if the commissioner considers the
disclosure of the information 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. Information otherwise confidential
remains confidential after the information is shared under this
section.
SECTION 3. Section 303.009(d), Finance Code, is amended to
read as follows:
(d) For an open-end account credit agreement that provides
for credit card transactions on which a merchant discount is not
imposed or received by the creditor or a retail charge agreement
under Chapter 345 without a merchant discount, the ceiling is 21
percent a year.
SECTION 4. Section 303.203(a), Finance Code, is amended to
read as follows:
(a) A lender may, at the time or after a loan is made, offer
to sell to the borrower and finance in a [the] loan contract subject
to this subtitle a charge for an automobile club membership.
SECTION 5. Section 342.502(d), Finance Code, is amended to
read as follows:
(d) On a loan subject to this chapter a lender may assess and
collect a fee that does not exceed the amount prescribed by Section
3.506, Business & Commerce Code [Chapter 617, Acts of the 68th
Legislature, Regular Session, 1983 (Article 9022, Vernon's Texas
Civil Statutes)], for the return by a depository institution of a
dishonored check, negotiable order of withdrawal, or share draft
offered in full or partial payment of a loan.
SECTION 6. The heading to Subchapter D, Chapter 345,
Finance Code, is amended to read as follows:
SUBCHAPTER D. ALTERNATE FINANCE CHARGE [MARKET COMPETITIVE RATE]
CEILING
SECTION 7. Section 345.155, Finance Code, is amended to
read as follows:
Sec. 345.155. TIME PRICE DIFFERENTIAL COMPUTATION AND
AMOUNT. (a) A time price differential authorized under Subchapter
C [this subchapter] shall be computed using the average daily
balance method.
(b) If the amount of a time price differential otherwise
authorized under Subchapter C [this subchapter] for a billing cycle
in which a balance is due is less than 75 cents a month, the holder
may charge an amount that does not exceed 75 cents a month.
SECTION 8. Section 345.157(a), Finance Code, is amended to
read as follows:
(a) A retail charge agreement [that implements the market
competitive rate ceiling] may provide for the payment of:
(1) a delinquency charge on each installment that is
in default for a period that is longer than 21 days;
(2) an attorney's reasonable fee if the agreement is
referred for collection to an attorney who is not a salaried
employee of the holder; and
(3) court costs and disbursements.
SECTION 9. Section 346.103(a), Finance Code, is amended to
read as follows:
(a) The following fees may be charged to or collected from a
customer in connection with an account under this chapter:
(1) an annual fee not to exceed:
(A) $50 a year on an account with a credit limit
of $5,000 or less;
(B) $75 a year on an account with a credit limit
exceeding $5,000 but not exceeding $25,000; and
(C) $125 a year on an account with a credit limit
exceeding $25,000;
(2) a late charge not to exceed the lesser of $15 or
five percent of the payment due after the payment continues unpaid
for 10 days or more after the date the payment is due, including
Sundays and holidays;
(3) a cash advance charge not to exceed the greater of
$2 or two percent of the cash advance;
(4) a returned check fee as provided for a loan
agreement under Chapter 342 by Section 3.506, Business & Commerce
Code [Section 1, Chapter 617, Acts of the 68th Legislature, Regular
Session, 1983 (Article 9022, Vernon's Texas Civil Statutes)]; and
(5) a fee for exceeding a credit limit not to exceed
the greater of $15 or five percent of the amount by which the credit
limit is exceeded.
SECTION 10. Section 348.006, Finance Code, is amended by
adding Subsections (e-1), (e-2), and (e-3) to read as follows:
(e-1) Except as provided by Subsections (e-2) and (e-3), the
following information and documents are confidential and not
subject to disclosure:
(1) all information provided by a retail seller to the
commissioner under Subsection (e), including the maximum
documentary fee a retail seller intends to charge, the written
notice of an increased documentary fee, and any financial
information submitted with the notice; and
(2) all correspondence between a retail seller and the
commissioner or the commissioner's representative relating to the
notice of an increased documentary fee under Subsection (e) and a
review for reasonableness of the amount of the documentary fee to be
charged.
(e-2) The commissioner may disclose information or
documents that are confidential under Subsection (e-1) if:
(1) the commissioner determines that release of the
information or documents is required for an administrative hearing;
(2) the retail seller consents to the release of the
information or documents; or
(3) the disclosure is required by a court order.
(e-3) The commissioner or the commissioner's representative
may disclose whether a retail seller has filed written notice of an
increased documentary fee and the proposed amount of the increased
fee to:
(1) a holder that provides written proof, signed by
the retail seller, that the retail seller has agreed to assign or
transfer one or more retail installment contracts to the holder; or
(2) a prospective retail buyer that provides to the
commissioner:
(A) a buyer's order executed by the prospective
buyer and the retail seller;
(B) a draft of a retail installment contract
provided by the retail seller to the prospective buyer; or
(C) a written statement by the retail seller
acknowledging that the person is a prospective buyer of a motor
vehicle from the retail seller.
SECTION 11. Section 351.006, Finance Code, is amended to
read as follows:
Sec. 351.006. ENFORCEMENT. (a) In addition to any other
applicable enforcement provisions, Subchapters E, F, and G, Chapter
14, apply to a violation of this chapter or Section 32.06 or 32.065,
Tax Code, in connection with property tax loans.
(b) Notwithstanding Section 14.251, the commissioner may
assess an administrative penalty under Subchapter F, Chapter 14,
against a person who violates Section 32.06(b-1), Tax Code,
regardless of whether the violation is knowing or wilful.
SECTION 12. Section 411.081(i), Government Code, as amended
by Chapters 183 (H.B. 1830), 780 (S.B. 1056), 816 (S.B. 1599), and
1027 (H.B. 4343), Acts of the 81st Legislature, Regular Session,
2009, is reenacted and amended to read as follows:
(i) A criminal justice agency may disclose criminal history
record information that is the subject of an order of nondisclosure
under Subsection (d) to the following noncriminal justice agencies
or entities only:
(1) the State Board for Educator Certification;
(2) a school district, charter school, private school,
regional education service center, commercial transportation
company, or education shared service arrangement;
(3) the Texas Medical Board;
(4) the Texas School for the Blind and Visually
Impaired;
(5) the Board of Law Examiners;
(6) the State Bar of Texas;
(7) a district court regarding a petition for name
change under Subchapter B, Chapter 45, Family Code;
(8) the Texas School for the Deaf;
(9) the Department of Family and Protective Services;
(10) the Texas Youth Commission;
(11) the Department of Assistive and Rehabilitative
Services;
(12) the Department of State Health Services, a local
mental health service, a local mental retardation authority, or a
community center providing services to persons with mental illness
or retardation;
(13) the Texas Private Security Board;
(14) a municipal or volunteer fire department;
(15) the Texas Board of Nursing;
(16) a safe house providing shelter to children in
harmful situations;
(17) a public or nonprofit hospital or hospital
district;
(18) the Texas Juvenile Probation Commission;
(19) the securities commissioner, the banking
commissioner, the savings and mortgage lending commissioner, the
consumer credit commissioner, or the credit union commissioner;
(20) the Texas State Board of Public Accountancy;
(21) the Texas Department of Licensing and Regulation;
(22) the Health and Human Services Commission;
(23) the Department of Aging and Disability Services;
(24) the Texas Education Agency; [and]
(25) the Guardianship Certification Board; [and]
(26) a county clerk's office in relation to a
proceeding for the appointment of a guardian under Chapter XIII,
Texas Probate Code;
(27) [(25)] the Department of Information Resources
but only regarding an employee, applicant for employment,
contractor, subcontractor, intern, or volunteer who provides
network security services under Chapter 2059 to:
(A) the Department of Information Resources; or
(B) a contractor or subcontractor of the
Department of Information Resources;
(28) [(25)] the Court Reporters Certification Board;
and
(29) [(25)] the Texas Department of Insurance.
SECTION 13. Section 53.0211(a), Occupations Code, is
amended to read as follows:
(a) This section does not apply to an applicant for a
license that would allow the applicant to provide:
(1) law enforcement services;
(2) public health, education, or safety services; or
(3) financial services in an industry regulated by the
securities commissioner, the banking commissioner, the savings and
mortgage lending commissioner, the consumer credit commissioner,
or the credit union commissioner.
SECTION 14. Section 345.153, Finance Code, is repealed.
SECTION 15. The change in law made by this Act to Section
53.0211(a), Occupations Code, applies only to an application for a
license filed on or after the effective date of this Act. An
application for a license filed before the effective date of this
Act is governed by the law in effect on the date the application was
filed, and the former law is continued in effect for that purpose.
SECTION 16. To the extent of any conflict, this Act prevails
over another Act of the 82nd Legislature, Regular Session, 2011,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 17. This Act takes effect September 1, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3453 was passed by the House on May
13, 2011, by the following vote: Yeas 143, Nays 1, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 3453 on May 27, 2011, by the following vote: Yeas 77, Nays 62,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3453 was passed by the Senate, with
amendments, on May 25, 2011, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor