PART 5. OFFICE OF CONSUMER CREDIT COMMISSIONER
CHAPTER 86. RETAIL CREDITORS
SUBCHAPTER A. REGISTRATION OF RETAIL CREDITORS
The Finance Commission of Texas (commission) adopts 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 commission adopts the amendments to §86.102 and §86.103 without changes to the proposed text as published in the June 30, 2023, issue of the Texas Register (48 TexReg 3449). The rules will not be republished.
The commission received no official comments on the proposed amendments.
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 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 regular 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.
Amendments to §86.102 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 amendments throughout §86.102(b) ensure consistent use of the term "annual fee."
Amendments to §86.103 include updated cross-references to §86.102, to ensure that a reader can easily locate the fee provisions in §86.102.
The rule amendments are adopted 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 adopted under Texas Finance Code, §14.107 and §16.003, which authorize the 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 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 adoption are contained in Texas Finance Code, Chapters 345 and 347.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on August 18, 2023.
TRD-202303041
Matthew Nance
General Counsel
Office of Consumer Credit Commissioner
Effective date: September 7, 2023
Proposal publication date: June 30, 2023
For further information, please call: (512) 936-7660