PART 5. OFFICE OF CONSUMER CREDIT COMMISSIONER
CHAPTER 86. RETAIL CREDITORS
SUBCHAPTER A. REGISTRATION OF RETAIL CREDITORS
The Finance Commission of Texas (commission) proposes amendments to §86.102 (relating to Fees) and §86.103 (relating to Registration Term, Renewal, and Expiration) in 7 TAC Chapter 86, concerning Retail Creditors.
The rules in 7 TAC Chapter 86 govern registrations with the Office of Consumer Credit Commissioner (OCCC) under Texas Finance Code, Chapters 345 and 347. In general, the purposes of the proposed rule changes to 7 TAC Chapter 86 are to specify annual registration fees for registered creditors and manufactured home creditors, and to implement recent legislative amendments to Chapters 345 and 347.
The OCCC distributed an early precomment draft of proposed changes to interested stakeholders for review, and then held a stakeholder meeting and webinar regarding the rule changes. The OCCC did not receive any informal precomments on the rule text draft.
The Texas Legislature passed SB 1371 in the 2023 legislative session. SB 1371 modernizes, clarifies, and corrects provisions of the Texas Finance Code administered by the OCCC. In particular, SB 1371 amends provisions relating to registration fees. Currently, Texas Finance Code, §345.351 provides a $10 annual fee for a registered creditor registration under Chapter 345, and Texas Finance Code, §347.451 provides a $15 annual fee for a manufactured home creditor registration under Chapter 347. SB 1371 amends these sections to authorize the Finance Commission to set annual registration fees under Chapters 345 and 347. SB 1371 has been signed by the governor and will be effective September 1, 2023.
Proposed amendments to §86.102 would specify that the annual registration fee is $10 for a Chapter 345 registration and $15 for a Chapter 347 registration. These are the same amounts currently included in the Finance Code, so the rule amendments would not change the fees that registrants currently pay. The OCCC is responsible for the costs of its operations. Under Texas Finance Code, §16.002 and §16.003, the OCCC is a self-directed, semi-independent agency, and may set fees in amounts necessary for the purpose of carrying out its functions. The OCCC has reviewed its costs and determined that the $10 and $15 registration fee amounts are currently appropriate to cover the costs of carrying out the OCCC's responsibilities and functions under Texas Finance Code, Chapters 345 and 347. Other proposed amendments throughout §86.102(b) would ensure consistent use of the term "annual fee."
Proposed amendments to §86.103 would include updated cross-references to §86.102, to ensure that a reader can easily locate the fee provisions in §86.102.
Mirand Diamond, Director of Licensing, Finance and Human Resources, has determined that for the first five-year period the proposed rule changes are in effect, there will be no fiscal implications for state or local government as a result of administering the rule changes.
Huffman Lewis, Director of Consumer Protection, has determined that for each year of the first five years the proposed amendments are in effect, the public benefits anticipated as a result of the changes will be that the commission's rules will be more easily understood by registered creditors and will ensure that the OCCC can effectively administer and enforce Texas Finance Code, Chapters 345 and 347.
The OCCC does not anticipate economic costs to persons who are required to comply with the rule changes as proposed.
The OCCC is not aware of any adverse economic effect on small businesses, micro-businesses, or rural communities resulting from this proposal. But in order to obtain more complete information concerning the economic effect of these rule changes, the OCCC invites comments from interested stakeholders and the public on any economic impacts on small businesses, as well as any alternative methods of achieving the purpose of the proposal while minimizing adverse impacts on small businesses, micro-businesses, and rural communities.
During the first five years the proposed rule changes will be in effect, the rules will not create or eliminate a government program. Implementation of the rule changes will not require the creation of new employee positions or the elimination of existing employee positions. Implementation of the rule changes will not require an increase or decrease in future legislative appropriations to the OCCC, because the OCCC is a self-directed, semi-independent agency that does not receive legislative appropriations. The proposal does not require an increase or decrease in fees paid to the OCCC. The proposal would not create a new regulation. The proposal would expand current §86.102 by specifying registration fee amounts. The proposal would not limit or repeal an existing regulation. The proposed rule changes do not increase or decrease the number of individuals subject to the rule's applicability. The agency does not anticipate that the proposed rule changes will have an effect on the state's economy.
Comments on the proposal may be submitted in writing to Matthew Nance, General Counsel, Office of Consumer Credit Commissioner, 2601 North Lamar Boulevard, Austin, Texas 78705 or by email to rule.comments@occc.texas.gov. To be considered, a written comment must be received on or before the 30th day after the date the proposal is published in the Texas Register. After the 30th day after the proposal is published in the Texas Register, no further written comments will be considered or accepted by the commission.
The rule amendments are proposed under Texas Finance Code, §345.351 and §347.451 (as amended by SB 1371 (2023)), which authorize the commission to set fees for registrations under Texas Finance Code, Chapters 345 and 347. The rule amendments are also proposed under Texas Finance Code, §14.107 and §16.003, which authorize the Finance Commission and the OCCC to set fees in amounts necessary to carry out the functions of the OCCC. In addition, Texas Finance Code, §11.304 authorizes the Finance Commission to adopt rules necessary to supervise the OCCC and ensure compliance with Texas Finance Code, Chapter 14 and Title 4.
The statutory provisions affected by the proposal are contained in Texas Finance Code, Chapters 345 and 347.
§86.102.Fees.
(a) Locations requiring registration. An annual registration fee is required for each location operated by a retail seller, creditor, holder or assignee.
(b) Annual fee. An annual fee is required under the provisions of Texas Finance Code, §345.351 or §347.451 and will be payable as follows:
(1) The annual fee is $10 for a registration under Texas Finance Code, Chapter 345.
(2) The annual fee is $15 for a registration under Texas Finance Code, Chapter 347.
(3) [(1)] A retail seller, creditor,
holder, or assignee must pay an annual [a registration]
fee for every chapter under which business is conducted.
(4) [(2)] The registration is
not transferable between locations. A retail seller, creditor, holder,
or assignee must obtain a registration for each new location.
(5) [(3)] No annual fee is required
for a location operated by a retail seller, creditor, holder, or assignee
operating under the provisions of Texas Finance Code, Chapter 345
or 347, provided the personnel at the location are not conducting
regulated business with the consumer (e.g., storage, web-hosting,
or data processing facility).
(c) Late filing fee. As provided by Texas Finance Code, §349.302(b), a person must pay a $250 late filing fee for each registered location if the person:
(1) obtains a new registration after the person has begun engaging in business under Texas Finance Code, Chapter 345 or 347; or
(2) obtains a renewal more than 30 days after expiration.
(d) Evidence of registration. The Office of Consumer Credit Commissioner (OCCC) will issue a certificate evidencing registration under the provisions of Texas Finance Code, Chapter 345 or 347, and this section. A registrant may print a copy of its registration certificate through the OCCC's online licensing portal.
(e) Registration duplicates sent by mail. If a registrant does not print its registration certificate online, the registrant may request that the OCCC mail a registration duplicate for a fee of $10 per certificate mailed.
§86.103.Registration Term, Renewal, and Expiration.
(a) Registration term and renewal. An initial registration is effective from the date of its issuance until November 30. A registration must be renewed annually to remain effective. After renewal, a registration is effective for a term of one year, from December 1 of a calendar year to November 30 of the next calendar year.
(b) Due date for annual fee. The annual fee described by §86.102(b) of this title (relating to Fees) is due by November 30 of each year.
(c) Expiration. If a registrant does not pay the annual fee, the registration will expire on November 30.
(d) Late renewal. A person may renew an expired registration
by December 30 by paying the annual fee. In order to renew an expired
registration after December 30, a person must pay any registration
fee for a prior year and the late filing fee described by §86.102
of this title [(relating to Fees)].
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on June 16, 2023.
TRD-202302183
Matthew Nance
General Counsel
Office of Consumer Credit Commissioner
Earliest possible date of adoption: July 30, 2023
For further information, please call: (512) 936-7660
CHAPTER 133. FORMS
The Texas State Securities Board proposes the repeal of §133.8, which adopts by reference a form concerning Consent to Service. The rule and Form 133.8 are being repealed because they are no longer needed due to the availability of a uniform form that serves this purpose. The uniform Form U-2, Uniform Consent to Service of Process, has long been recognized by the Board in §133.33 as accepted for filing with the Agency as an alternative to Form 133.8.
Clint Edgar, Deputy Securities Commissioner; and Emily Diaz and Shaun Yarroll, Assistant Directors, Registration Division, have determined that for the first five-year period the proposed repeal is in effect there will be no foreseeable fiscal implications for state or local government as a result of enforcing or administering the proposed repeal.
Mr. Edgar, Ms. Diaz, and Mr. Yarroll have also determined that for each year of the first five years the proposed repeal is in effect the public benefit expected as a result of adoption of the proposed repeal will that a form that is no longer needed will be eliminated. There will be no adverse economic effect on micro- or small businesses or rural communities. Since the proposed repeal will have no adverse economic effect on micro- or small businesses or rural communities, preparation of an economic impact statement and a regulatory flexibility analysis is not required. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. There is no anticipated impact on local employment.
Mr. Edgar, Ms. Diaz, and Mr. Yarroll have also determined that for the first five-year period the proposed repeal of the rule adopting the form is in effect: it does not create or eliminate a government program; it does not require the creation or elimination of existing employee positions; it does not require an increase or decrease in future legislative appropriations to this agency; it does not require an increase or decrease in fees paid to this agency; it does not increase or decrease the number of individuals subject to the rule’s applicability; and it does not positively or negatively affect the state’s economy. Additionally the proposed repeal does not create a new regulation; and it does not limit or expand an existing regulation. The proposal repeals an existing form that is no longer needed.
Comments on the proposal must be in writing and will be accepted for 30 days following publication of the proposed repeal in the Texas Register. Written comments should be submitted to Marlene K. Sparkman, General Counsel, State Securities Board, P.O. Box 13167, Austin, Texas 78711‑3167 or faxed to (512) 305‑8336. Comments may also be submitted electronically to proposal@ssb.texas.gov. In order to be considered by the Board at adoption, comments must be received no later than 30 days following publication.
The repeal is proposed under the authority of the Texas Government Code, Section 4002.151. Section 4002.151 provides the Board with the authority to adopt rules as necessary to implement the provisions of the Texas Securities Act, including rules governing registration statements, applications, notices, and reports; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.
The proposed repeal affects: none applicable.
§133.8.Consent to Service.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on June 16, 2023.
TRD-202302178
Travis J. Iles
Securities Commissioner
State Securities Board
Earliest possible date of adoption: July 30, 2023
For further information, please call: (512) 305-8303