Office of Consumer Credit Commissioner

Final Results of Last Sunset Review

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• Continue the Texas Department of Banking (DOB), Office of Consumer Credit Commissioner (OCCC), and Department of Savings and Mortgage Lending (SML) under the continued oversight of the Finance Commission for 12 years.

Oversight and Efficiency

• Direct the Finance Commission to evaluate and update the agencies’ key performance measures.  (Management action – nonstatutory)
• Direct the Finance Commission to develop a budget policy that fosters more straightforward budgeting and fee setting.  (Management action – nonstatutory)
• Direct the Finance Commission to analyze and report on the implementation of their new fund balance policy adopted in February 2018, and report on each agency’s change in total fund balance, types of funds reserved, and methodologies by which the agencies reduced their fund balances, if applicable, to the governor, lieutenant governor, speaker of the House, and Sunset Commission on September 1, 2020.  (Management action – nonstatutory)
• Direct the Finance Commission to develop standard policies regarding tracking and reporting travel expenditures.  (Management action – nonstatutory)
• Direct the Finance Commission to minimize duplication of agency functions and promote more cost-efficient administration of the finance agencies, evaluating not just cost efficiencies, but also changes that will make it easier for the public to interact with the agencies.  (Management action – nonstatutory)
• Discontinue registration of cemetery brokers.
• Discontinue registration of private child support enforcement agencies.

Department of Banking Licensing and Enforcement 

• Authorize DOB to establish license terms in rule for death care service licensees.
• Update DOB’s complaint processing provisions to meet the Sunset Commission’s standard across-the-board requirements.
• Update outdated appeals provisions to align with the Administrative Procedure Act.
• Direct DOB and the Finance Commission to develop an updated complaint process in rule. (Management action – nonstatutory)

Office of Consumer Credit Commissioner Licensing and Enforcement 

• Specify a pawnbroker is responsible for the acts of a pawnbroker’s officers, directors, employees, and agents in the conduct of the pawnshop business.  Allow pawnbrokers to choose whether to participate in the pawnshop employee license program to require licensure of their pawnshop employees.  Specify requirements of the program administered by the Finance Commission.  
• Remove subjective licensure provisions for pawnshops and pawnshop employees.
• Authorize OCCC to provide biennial license renewals for its licensees and registrants.
• Update OCCC’s complaint processing provisions to meet the Sunset Commission’s standard across-the-board requirements.
• Authorize OCCC to disclose summary complaint resolution information to a complainant.
• Authorize OCCC to open an investigation immediately upon reasonable suspicion of a violation.
• Give OCCC standard authority to take action against crafted precious metal dealers violating state regulations.
• Authorize OCCC to deny renewal applications for noncompliant licensees and registrants when appropriate.
• Standardize OCCC’s burden of proof for ordering restitution in all regulatory programs.
• Authorize OCCC to order crafted precious metal dealers to pay consumer restitution.
• Update outdated appeals provisions to align with the Administrative Procedure Act.
• Clarify OCCC has regulatory authority over all regulated loans made to persons located in Texas at the time the loan is made.
• Direct OCCC and the Finance Commission to develop an updated complaint process in rule. (Management action – nonstatutory)
• Direct the agency to make enforcement orders available online.  (Management action – nonstatutory)

Department of Savings and Mortgage Lending Licensing and Enforcement

• Remove unnecessary, subjective licensure provisions for residential mortgage loan originators.
• Update SML’s complaint processing provisions to meet the Sunset Commission’s standard across-the-board requirements.
• Direct SML and the Finance Commission to develop an updated complaint process in rule.  (Management action – nonstatutory)
• Direct SML to modify its penalty matrix to ensure consistent application of administrative penalties.  (Management action – nonstatutory)

Governance

• Update the standard across-the-board requirement related to Finance Commission member training.
• Authorize the finance agencies to establish advisory committees in rule as needed.
• Apply the Sunset across-the-board recommendation regarding alternative dispute resolution to the finance agencies and continue their required reports.
• Streamline OCCC reporting requirements by removing requirements to track financial services offered to agricultural and small businesses, track locations of lenders, and develop models for providing lower-cost alternatives to borrowers.