HBA-NLM H.B. 1511 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1511 By: Marchant Financial Institutions 3/15/1999 Introduced BACKGROUND AND PURPOSE The 75th Legislature passed H.B. 10, which provided for nonsubstantive revisions to Texas statutes relating to finance, including the Texas Banking Act, Texas Savings and Loan Act, Texas Savings Bank Act, Texas Credit Union Act, and various other statutes relating to financial institutions, businesses, and credit transactions. H.B. 10 included conforming amendments, repeals, and penalties for the purpose of making the statutes more accessible without altering the sense, meaning, or effect of the law. The Texas Pawnshop Act was also among the provisions addressed by H.B. 10. H.B. 1511 further clarifies language included in the Texas Pawnshop Act and updates existing sections of the Act. This bill grants exclusive authority regarding the operation of pawnshops to the legislature, rather than to the consumer credit commissioner (commissioner). However, this bill authorizes the commissioner to regulate a business practice that requires a pawnshop license, notwithstanding any other provisions of this Act. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 371.005, Finance Code, to grant the legislature the exclusive authority regarding the operation of pawnshops, except for a matter delegated by this chapter to the consumer credit commissioner (commissioner). Provides that the commissioner has the authority to regulate only a business practice that requires a pawnshop license, nothwithstanding any other provision of this chapter. SECTION 2. Amends Section 371.066(a), Finance Code, to include that a temporary pawnshop license may be issued on receipt of an application to owners that are substantially identical to those of a pawnshop in operation at the time of receipt of the application. SECTION 3. Amends Section 371.072, Finance Code, to define "net assets" as the term was defined at the time the license was issued and to make a conforming change. SECTION 4. Amends Section 371.154 (b), Finance Code, to require a pawnbroker to secure a bond, rather than maintain a bond. SECTION 5. Amends Section 371.162, Finance Code, to provide an exception to this section under Section 371.163(a) (Lost or Destroyed Ticket), Finance Code, which states that if a pawn ticket is lost, destroyed, or stolen, the pledgor may notify the pawnbroker of that fact in writing, and that receipt of this notice invalidates the pawn ticket if the pledged goods have not been redeemed. Makes a nonsubstantive change. SECTION 6. Amends Section 371.176, Finance Code, to prohibit a pawnbroker from accepting a pledge from, rather than entering a pawn transaction with, a person under 18 years of age. SECTION 7. Amends Section 371.258(b), Finance Code, to provide that the commissioner may reinstate a suspended pawnshop license or issue a new license if no condition exists that would have justified refusal to originally issue the license. SECTION 8. Amends Section 371.306(a), Finance Code, to require a pawnbroker to forfeit the right to collect, rather than to provide that the pawnbroker is liable for, a pawn service charge imposed by the pawnbroker that is greater than the amount authorized by this chapter. Makes a nonsubstantive change. SECTION 9. Effective date: September 1, 1999. SECTION 10. Emergency clause.