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.