Office of House Bill AnalysisH.B. 1511
By: Marchant
Financial Institutions


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. 


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 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.