Highlights 77th Texas Legislature - Senate

_______________________________
Alternate Interest Rate Charges for Certain Loans - S.B. 272
by Senator Carona
House Sponsor: Representative Thompson
FINANCE
77 th Texas Legislature
The maximum interest rate for consumers who qualify for large loans is less than the maximum interest rate
for consumers who qualify for smaller loans. Some concern exists that consumers who qualify for only the
minimum loan amounts may seek alternative means to obtain additional funds, including loans that
originate outside the state.
Authorizes a loan, not secured by real property, to provide for a rate or amount of interest computed by
using the daily earnings method or the scheduled installment earnings method, and that does not exceed
certain yearly interest rate percentages based on certain criteria offered by the consumer credit
commissioner, using a reference base index divided into the consumer price index, with varying reference
base amounts.
Requires the establishment of a program to address alternatives to high-cost lending in this state to be set
up by the consumer credit commissioner.
Department of Banking (Sunset) - S.B. 314
by Senator Sibley
House Sponsor: Representative McCall
The Department of Banking (department) oversees the safety and soundness of the financial system of this
state. The department charters, supervises, and examines state chartered banks. The department also
oversees depository institutions and their affiliates, companies selling money orders and checks, foreign
currency exchange and transmission businesses, perpetual care cemetery funds, and prepaid funeral
contract sellers. The department was under Sunset review and due to be abolished on September 1, 2001,
unless continued by the legislature.
Provides for the continuation of the department and incorporates certain recommendations of the Sunset
Advisory Commission.
Requires the Finance Commission to establish a standard disclosure to be included in each contract to
inform purchasers of the goods and services under certain contracts.
Authorizes the banking commissioner to impose penalties on persons who violate certain rules.
Office of Consumer Credit Commissioner (Sunset) - S.B. 317
by Senator Sibley
House Sponsor: Representative McCall
The Office of Consumer Credit Commissioner (OCCC) recently underwent Sunset Commission review.
Continues the OCCC for 12 years and sets forth standard sunset language regarding conflicts of interest,
equal employment opportunities, complaint procedures, and employee training.
Authorizes OCCC to set fees and make rules regarding pawnshops, car loans, consumer loans, deferred
presentment transactions, and sale-leaseback transactions.
Senate Research Center 101