HBA-NLM H.B. 1830 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1830
By: Elkins
Financial Institutions
3/5/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, there are an estimated 1,524 licensed pawnbrokers in the state
of Texas and approximately 3,813 licenced small loan companies. In
comparison, there are 808 licenced banks and 2 savings and loan banks in
the state.  These industries are regulated by the Finance Commission of
Texas, which is made up of banking, and savings executives. Pawnbrokers and
small loan companies are not specifically represented on the commission.
H.B.  1830 specifies that the finance commission  must be represented by at
least two members who are pawnshop executives and two members who are
finance executives.  

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 11.101(a), Finance Code, to increase the number
of members of the Finance Commission of Texas from nine to 12. 

SECTION 2.  Amends Sections 11.102(b), (c), and (e), Finance Code, as
follows: 

(b) Provides that two members of the finance commission must be banking
executives, two members must be finance executives, two members must be
pawnshop executives, and two members must be savings executives. Makes a
nonsubstantive change. 

(c) Prohibits four members, rather than five members, from being banking
executives, finance executives, pawnshop executives, savings executives, or
controlling owners or shareholders in a bank, entity regulated by Subtitle
B (Loans and Financed Transactions), Title 4, pawnshop, savings
association, or saving banks but must be selected by the governor on the
basis of recognized business ability.   Deletes existing text which
provides that at least one member must be a certified public account. 

(e)  Defines "finance executive" and "pawnshop executive."

SECTION 3. (a)  Provides that the changes in law made by this Act do not
affect the entitlement                         of a member serving on the
commission to carry out the commission's functions for
the remainder of the member's term.  Makes application of this Act
prospective. 

(b)  Requires the governor to appoint three additional members to the
commission, promptly after this Act takes effect.  Requires the governor in
appointing those members to appoint one person to a term expiring February
1, 2000; one to a term expiring February 1, 2002; and one to a term
expiring February 1, 2004. 

SECTION 4.  Effective date: September 1, 1999.

SECTION 5.  Emergency clause.