PART 1. FINANCE COMMISSION OF TEXAS
CHAPTER 2. RESIDENTIAL MORTGAGE LOAN ORIGINATORS REGULATED BY THE OFFICE OF CONSUMER CREDIT COMMISSIONER
SUBCHAPTER A. APPLICATION PROCEDURES
The Finance Commission of Texas (commission) adopts amendments to §2.108 (relating to Military Licensing) in 7 TAC Chapter 2, concerning Residential Mortgage Loan Originators Regulated by the Office of Consumer Credit Commissioner. The commission adopts the amendments to §2.108 without changes to the proposed text as published in the September 1, 2023, issue of the Texas Register (48 TexReg 4729).The rule will not be republished.
The rules in 7 TAC Chapter 2 govern residential mortgage loan originators (RMLOs) licensed by the Office of Consumer Credit Commissioner (OCCC) under Texas Finance Code, Chapter 180. In general, the purpose of the adopted rule changes is to specify RMLO licensing requirements for military service members, military veterans, and military spouses, in accordance with Chapter 55 of the Texas Occupations Code, as amended by SB 422 (2023).
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.
Chapter 55 of the Texas Occupations Code describes licensing requirements for military service members, military veterans, and military spouses. Chapter 55 applies to licenses that "must be obtained by an individual to engage in a particular business." Tex. Occ. Code §55.001(3). Chapter 55 includes an expedited license application procedure for certain previously licensed individuals, and authorizes certain individuals licensed in other jurisdictions to engage in licensed occupations in Texas. SB 422, which the Texas Legislature passed in 2023, amends various provisions in Chapter 55. Specifically, SB 422 amends Texas Occupations Code, §55.0041 to extend recognition of licenses in other jurisdictions to military service members, and to specify a 30-day period for an agency to verify that a qualifying military service member or spouse is licensed in good standing with another jurisdiction. SB 422 also amends Texas Occupations Code, §55.005 to specify that agencies will review certain license applications from qualifying military service members, veterans, and spouses within 30 days after the agency received a complete application. SB 422 went into effect on September 1, 2023.
The amendments to §2.108 implement SB 422's statutory changes for RMLOs licensed by the OCCC. Amendments to §2.108(d) specify that the OCCC will process an RMLO license application no later than 30 days after receiving a complete license application from a qualifying applicant who is a military service member, military veteran, or military spouse. These changes implement SB 422's amendments to Texas Occupations Code, §55.005(a). Amendments throughout §2.108(e) specify that the authorization to engage in business in Texas applies to military service members, and that the OCCC will review information in NMLS (the nationwide system for licensing RMLOs) no later than the 30th day after the military service member or military spouse submits required information. These changes implement SB 422's amendments to Texas Occupations Code, §55.0041.
The commission received no official comments on the proposed amendments.
The rule amendments are adopted under Texas Occupations Code, §55.004 and §55.0041 (as amended by SB 422), which authorize a state agency to adopt rules implementing requirements of Chapter 55 of the Texas Occupations Code. In addition, Texas Finance Code, §180.004 authorizes the commission to implement rules to comply with Texas Finance Code, Chapter 180.
The statutory provisions affected by the adoption are contained in Texas Occupations Code, Chapter 55 and Texas Finance Code, Chapter 180.
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 October 27, 2023.
TRD-202303952
Matthew Nance
General Counsel
Finance Commission of Texas
Effective date: November 16, 2023
Proposal publication date: September 1, 2023
For further information, please call: (512) 936-7659
CHAPTER 33. MONEY SERVICES BUSINESSES
7 TAC §§33.3, 33.4, 33.13, 33.23, 33.37, 33.54
The Finance Commission of Texas (the commission), on behalf of the Texas Department of Banking (the department), adopts the repeal of §33.3, concerning how to claim an exclusion from licensing as an agent for a federally insured financial institution or a foreign bank branch or agency; §33.4 concerning payment processors; §33.13, concerning how to obtain a new license and what deadlines are associated with applications; §33.23, concerning additional provisions that apply to permissible investments; §33.37, concerning receipts issued relating to money transmission transactions; and §33.54, concerning an exemption from licensure for securities dealers and agents. The repeals are adopted without changes to the proposed text as published in the September 1, 2023, issue of the Texas Register (48 TexReg 4730). The repealed sections will not be republished.
The repeals arise from the passage of Senate Bill 895, sponsored by Senator Nathan Johnson, during the 88th legislative session and provide clarity and update statutory citations. Effective September 1, 2023, Senate Bill 895 repealed Chapter 151 of the Texas Finance Code (Finance Code) and added Chapter 152 relating to the regulation of money services businesses.
Section 33.3 is repealed because it is as an outdated guideline for claiming an exclusion from licensing that is defined in statute.
Sections 33.4, 33.13, 33.23, 33.37, and 33.54 are repealed as the provisions of the rules were incorporated in the statutory language of Finance Code, Chapter 152 and are therefore redundant.
The department received no comments regarding the proposed repeals.
The repeals are adopted under Finance Code, §152.052 which authorizes the commission to adopt rules to administer and enforce Finance Code, Chapter 152.
No statutes are affected by the repeals.
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 October 27, 2023.
TRD-202303988
Marcus Adams
Acting General Counsel
Texas Department of Banking
Effective date: November 16, 2023
Proposal publication date: September 1, 2023
For further information, please call: (512) 475-1382
The Finance Commission of Texas (the commission), on behalf of the Texas Department of Banking (the department), adopts amendments to §33.7, concerning how to obtain an exemption from licensing related to exchanging currency in connection with retail, wholesale or service transactions; §33.15, concerning the options available when the department does not comply with new license application processing times; §33.27, concerning fees to obtain and maintain a license; §33.30, concerning a notice of cybersecurity incident; §33.31, concerning records relating to currency exchange transactions; §33.33, concerning receipts issued relating to currency exchange transactions; §33.35, concerning records relating to money transmission transactions; §33.51, concerning providing information to customers on how to file a complaint; §33.52, concerning notice relating to authorized delegates; and §33.53, concerning an exemption from licensure for debt management service providers. These amendments are adopted without changes to the proposed text as published in the September 1, 2023 issue of the Texas Register (48 TexReg 4731). The amended rules will not be republished.
The adopted amendments arise from the passage of Senate Bill 895, sponsored by Senator Nathan Johnson, during the 88th legislative session and provide clarity and update statutory citations. Effective September 1, 2023, Senate Bill 895 repealed Chapter 151 of the Texas Finance Code (Finance Code) and added Chapter 152 relating to the regulation of money services businesses.
The adopted amendments to §§33.7, 33.15, 33.27, 33.30, 33.31, 33.33, 33.35, and 33.51 - 33.53 update existing citations to reference Chapter 152 of the Finance Code.
The department received no comments regarding the proposed amendments.
The amendments are adopted pursuant to Finance Code, §152.052 which authorizes the commission to adopt rules to administer and enforce Finance Code, Chapter 152.
Finance Code §§ 152.003, 152.056, 152.057, 152.102, 152.106, 152.107, 152.207, 152.253, and 152.303 are affected by the adopted amended sections.
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 October 27, 2023.
TRD-202303989
Marcus Adams
Acting General Counsel
Texas Department of Banking
Effective date: November 16, 2023
Proposal publication date: September 1, 2023
For further information, please call: (512) 475-1382
CHAPTER 81. MORTGAGE BANKERS AND RESIDENTIAL MORTGAGE LOAN ORIGINATORS
SUBCHAPTER B. LICENSING OF INDIVIDUAL ORIGINATORS
The Finance Commission of Texas (commission), on behalf of the Department of Savings and Mortgage Lending (department), adopts amendments to 7 TAC Chapter 81, §81.103, concerning Licensing of Military Service Members, Military Veterans, and Military Spouses. The commission's proposal was published in the September 1, 2023, issue of the Texas Register (48 TexReg 4735). The rule is adopted without changes to the published text and will not be republished.
Explanation of and Justification for the Rule
Preexisting §81.103 specifies licensing requirements for military service members, military veterans, and military spouses applying for an individual residential mortgage loan originator (RMLO) license, in accordance with Occupations Code Chapter 55.
Changes Concerning Implementation of SB422
Senate Bill 422 (SB422) was enacted during the 88th Legislature, Regular Session (2023) and became effective September 1, 2023. SB422 amended Occupations Code Chapter 55. The rule changes are designed to implement the requirements of SB422. The adopted rule: (i) amends preexisting §81.103(d) to specify that the department will process an RMLO application from a military service member, military veteran, or military spouse on or before 30 days after the date the license application and request for expedited review are received; and (ii) amends preexisting §81.103(e) to specify that the subsection applies to military service members.
Changes Concerning Request for Expedited Review
In order for the department to have notice of an applicant's military-related status and for the department to receive documentation to verify such status, the adopted rule amends preexisting §81.103(d) to specify that a military service member, military veteran, or military spouse seeking expedited review of his or her application must make a written request on the appropriate form and provide supporting documentation concerning his or her status as a military service member, military veteran, or military spouse.
Other Modernization and Update Changes
The adopted rule makes changes to modernize and update the rule, including: adding and replacing language for clarity and improve readability; removing unnecessary or duplicative provisions; and updating terminology.
Summary of Public Comments
Publication of the commission's proposal recited a deadline of 30 days to receive public comments. No comments were received.
Statutory Authority
The rule is adopted under the authority of Finance Code §158.023, authorizing the commission to adopt rules necessary to implement or fulfill the purposes of Finance Code Chapter 157, and as required to carry out the intentions of the Federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. §§5101-5117). 7 TAC §81.103 is also adopted under the authority of, and to implement, Occupations Code Chapter 53, Subchapter D.
The adopted rule affects the statutes contained in Finance Code Chapter 157, the Mortgage Banker Registration and Residential Mortgage Loan Originator Act, and Chapter 180, the Texas Secure and Fair Enforcement for Mortgage Licensing Act of 2009.
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 October 30, 2023.
TRD-202303999
Iain A. Berry
General Counsel
Department of Savings and Mortgage Lending
Effective date: November 19, 2023
Proposal publication date: September 1, 2023
For further information, please call: (512) 475-1535
CHAPTER 85. PAWNSHOPS AND CRAFTED PRECIOUS METAL DEALERS
SUBCHAPTER A. RULES OF OPERATION FOR PAWNSHOPS
DIVISION 3. PAWNSHOP EMPLOYEE LICENSE
The Finance Commission of Texas (commission) adopts amendments to §85.309 (relating to Military Licensing) in 7 TAC Chapter 85, Subchapter A, concerning Rules of Operation for Pawnshops. The commission adopts the amendments to §85.309 without changes to the proposed text as published in the September 1, 2023, issue of the Texas Register (48 TexReg 4737). The rule will not be republished.
The rules in 7 TAC Chapter 85, Subchapter A govern pawnshops and pawnshop employees licensed by the Office of Consumer Credit Commissioner (OCCC) under Texas Finance Code, Chapter 371. In general, the purpose of the adopted rule changes is to specify pawnshop employee licensing requirements for military service members, military veterans, and military spouses, in accordance with Chapter 55 of the Texas Occupations Code, as amended by SB 422 (2023).
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.
Chapter 55 of the Texas Occupations Code describes licensing requirements for military service members, military veterans, and military spouses. Chapter 55 applies to licenses that "must be obtained by an individual to engage in a particular business." Tex. Occ. Code §55.001(3). Chapter 55 includes an expedited license application procedure for certain previously licensed individuals, and authorizes certain individuals licensed in other jurisdictions to engage in licensed occupations in Texas. SB 422, which the Texas Legislature passed in 2023, amends various provisions in Chapter 55. Specifically, SB 422 amends Texas Occupations Code, §55.0041 to extend recognition of licenses in other jurisdictions to military service members, and to specify a 30-day period for an agency to verify that a qualifying military service member or spouse is licensed in good standing with another jurisdiction. SB 422 also amends Texas Occupations Code, §55.005 to specify that agencies will review certain license applications from qualifying military service members, veterans, and spouses within 30 days after the agency received a complete application. SB 422 went into effect on September 1, 2023.
The amendments to §85.309 implement SB 422's statutory changes for pawnshop employees licensed by the OCCC. Amendments to §85.309(d) specify that the OCCC will process a pawnshop employee license application no later than 30 days after receiving a complete license application from a qualifying applicant who is a military service member, military veteran, or military spouse. These changes implement SB 422's amendments to Texas Occupations Code, §55.005(a). Amendments throughout §85.309(e) specify that the authorization to engage in business in Texas applies to military service members, and that the OCCC will send a request for records to the appropriate licensing authority no later than the 30th day after the military service member or military spouse submits required information. These changes implement SB 422's amendments to Texas Occupations Code, §55.0041.
The commission received no official comments on the proposed amendments.
The rule amendments are adopted under Texas Occupations Code, §55.004 and §55.0041 (as amended by SB 422), which authorize a state agency to adopt rules implementing requirements of Chapter 55 of the Texas Occupations Code. The rule amendments are also adopted under Texas Finance Code, §371.006, which authorizes the commission to adopt rules to enforce Texas Finance Code, Chapter 371. 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 Occupations Code, Chapter 55 and Texas Finance Code, Chapter 371.
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 October 27, 2023.
TRD-202303949
Matthew Nance
General Counsel
Office of Consumer Credit Commissioner
Effective date: November 16, 2023
Proposal publication date: September 1, 2023
For further information, please call: (512) 936-7660