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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring that certain notices and disclosures provided |
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by credit access businesses be in foreign languages. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 393.222, Finance Code, is amended by |
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adding Subsections (a-1) and (a-2) and amending Subsection (b) to |
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read as follows: |
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(a-1) A credit access business shall post the notices and |
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other disclosures required by Subsection (a) in English, Spanish, |
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and any other language as determined necessary by the Finance |
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Commission of Texas. |
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(a-2) The finance commission shall develop a notice in |
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Spanish that translates the notice required by Subsection (a)(3). |
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If the commission makes the determination to require a credit |
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access business to post the disclosures under this section in a |
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language other than English or Spanish, the commission shall |
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develop a notice in that language that translates the notice |
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required by Subsection (a)(3). The commission shall make a notice |
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developed under this subsection available to credit access |
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businesses. |
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(b) The finance commission shall adopt rules regarding the |
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circumstances under which a credit access business must post a |
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notice or other disclosures under this section in a language other |
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than English or Spanish. The commission [Finance Commission of
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Texas] may adopt other rules to implement this section. |
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SECTION 2. Sections 393.223(a) and (c), Finance Code, are |
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amended to read as follows: |
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(a) Before performing services described by Section |
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393.221(1), a credit access business must provide to a consumer, in |
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English, Spanish, and any other language as determined necessary by |
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the Finance Commission of Texas, a disclosure adopted by rule of the |
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commission [Finance Commission of Texas] that discloses the |
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following in a form prescribed by the commission: |
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(1) the interest, fees, and annual percentage rates, |
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as applicable, to be charged on a deferred presentment transaction |
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or on a motor vehicle title loan, as applicable, in comparison to |
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interest, fees, and annual percentage rates to be charged on other |
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alternative forms of consumer debt; |
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(2) the amount of accumulated fees a consumer would |
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incur by renewing or refinancing a deferred presentment transaction |
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or motor vehicle title loan that remains outstanding for a period of |
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two weeks, one month, two months, and three months; and |
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(3) information regarding the typical pattern of |
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repayment of deferred presentment transactions and motor vehicle |
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title loans. |
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(c) The Finance Commission of Texas shall adopt rules to |
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implement this section, including rules regarding the |
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circumstances under which a credit access business must provide the |
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disclosure under this section in a language other than English or |
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Spanish. |
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SECTION 3. (a) A credit access business is not required to |
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post the notice required by Section 393.222(a)(3), Finance Code, in |
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a language other than English until the Finance Commission of Texas |
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develops and makes available to a credit access business the notice |
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translated into that language as required by Section 393.222(a-2), |
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Finance Code, as added by this Act. |
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(b) A credit access business is not required to provide the |
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disclosure required by Section 393.223(a), Finance Code, as amended |
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by this Act, in a language other than English until the Finance |
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Commission of Texas prescribes the disclosure form in that |
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language. |
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SECTION 4. This Act takes effect September 1, 2013. |