Title FI, Finance Code

Sec. 354.004. REQUIRED DEBT CANCELLATION AGREEMENT LANGUAGE. A debt cancellation agreement must state: (1) the contact information of the retail seller, the holder, and any administrator of the agreement; (2) the name and address of the retail buyer; (3) the cost and term of the …

Sec. 354.005. APPROVAL OF FORMS FOR DEBT CANCELLATION AGREEMENTS. (a) Debt cancellation agreement forms must be submitted to the commissioner for approval. Debt cancellation agreement forms may include additional language to supplement the terms of the debt cancellation agreement…

Sec. 354.006. ADDITIONAL REQUIREMENTS FOR DEBT CANCELLATION AGREEMENTS. (a) If a retail buyer purchases a debt cancellation agreement, the retail seller must provide to the retail buyer a true and correct copy of the agreement not later than the 10th day after the date of the con…

Sec. 354.007. REFUND FOR DEBT CANCELLATION AGREEMENTS. (a) A refund or credit of the debt cancellation agreement fee must be based on the earliest date of: (1) the prepayment of the contract in full before the original maturity date; (2) a demand by the holder for payment in full…

Sec. 371.001. SHORT TITLE. This chapter shall be known and may be cited as the "Texas Pawnshop Act." Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 371.002. PURPOSES. The purposes of this chapter are to: (1) prevent fraud, unfair practices, discrimination, imposition, and abuse of state residents; (2) exercise the state's police power to ensure a sound system of making pawn loans and transfers of personal property by an…

Sec. 371.003. DEFINITIONS. In this chapter: (1) "Applicable liabilities" include trade or other accounts payable; accrued sales, income, or other taxes; accrued expenses; and notes or other payables that are unsecured or secured in whole or part by current assets. The term does n…

Sec. 371.004. COMPUTATION OF MONTH. (a) For the computation of time in this chapter, a month is the period from a date in a month to the corresponding date in the succeeding month. If the succeeding month does not have a corresponding date, the period ends on the last day of the …

Sec. 371.005. REGULATORY AUTHORITY. The legislature has exclusive authority regarding the operation of pawnshops, except for a matter delegated by this chapter to the commissioner. The commissioner has the authority to regulate only a business practice that requires a pawnshop li…

Sec. 371.006. RULEMAKING. (a) The Finance Commission of Texas may adopt rules to enforce this chapter. (b) Repealed by Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 34(3), eff. September 1, 2023. (c) Repealed by Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 34(3),…

Sec. 371.007. STAGGERED RENEWAL OF LICENSES. (a) The Finance Commission of Texas by rule may adopt a system under which licenses issued under this chapter expire on various dates during the year. (b) For a year in which an expiration date is changed, a license fee payable on the …

Sec. 371.051. PAWNSHOP LICENSE REQUIRED. A person may not engage in business as a pawnbroker unless the person holds a pawnshop license. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 371.052. ELIGIBILITY. (a) To be eligible for a pawnshop license, an applicant must: (1) meet the net assets requirement of Section 371.072; and (2) show that: (A) the pawnshop will be operated lawfully and fairly under this chapter; and (B) the applicant or the applicant's o…

Sec. 371.053. VERIFICATION OF APPLICANT'S NET ASSETS. If the commissioner cannot verify that an applicant meets the net assets requirement of Section 371.072, the commissioner may require a finding, including a current balance sheet, by an independent certified public accountant …

Sec. 371.054. LICENSE APPLICATION. (a) This section applies to an application for: (1) an original pawnshop license; (2) relocation of a pawnshop; or (3) transfer of a pawnshop license and approval of a change in the ownership of a pawnshop. (b) An application must be made to the…

Sec. 371.055. FEES; PROOF OF INSURANCE. An applicant must submit with the application: (1) an investigation fee of: (A) $500 if the applicant does not hold a license; or (B) $250 if the application: (i) is for an additional license for a separate location; or (ii) involves substa…

Sec. 371.056. BOND. (a) The commissioner may require that an applicant file a bond with the application. The bond must be: (1) satisfactory to the commissioner; (2) in the amount set by the commissioner not to exceed $5,000 for each license; and (3) issued by a surety qualified t…

Sec. 371.057. INVESTIGATION; NOTICE OF APPLICATION. (a) On receipt of an application and the required fees, the commissioner shall: (1) conduct an investigation to determine whether to issue the license; and (2) give notice of the application to: (A) the Department of Public Safe…

Sec. 371.058. PUBLIC HEARING. (a) On request, the commissioner shall conduct a public hearing before issuing a pawnshop license. (b) The commissioner shall give a pawnbroker that would be affected by the granting of an application for a pawnshop license an opportunity to appear, …

Sec. 371.059. APPROVAL; ISSUANCE OF LICENSE. (a) Subject to Subsection (b), the commissioner shall approve the application and issue a license if the commissioner finds that the applicant is eligible for the license. (b) In a county with a population of 250,000 or more, the commi…

Sec. 371.060. NOTICE OF DENIAL; HEARING. (a) If the commissioner does not make a finding described by Section 371.059, the commissioner shall notify the applicant. (b) An applicant who requests a hearing on the application not later than the 30th day after the date of notificatio…

Sec. 371.061. PERIOD FOR FINAL DECISION TO APPROVE OR DENY. Unless the applicant and the commissioner agree in writing to a later date, the commissioner shall approve or deny the application before the 61st day after the later of the date on which: (1) the application is filed an…

Sec. 371.062. DISPOSITION OF FEES ON DENIAL OF APPLICATION. If the commissioner denies the application, the commissioner shall retain the investigation fee and shall return to the applicant the license fee submitted with the application. Acts 1997, 75th Leg., ch. 1008, Sec. 1, ef…

Sec. 371.0625. LICENSE TERM. A license issued under this subchapter is valid for the period prescribed by finance commission rule adopted under Section 14.112. Added by Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 68, eff. September 1, 2019.

Sec. 371.063. LICENSE ISSUED BEFORE OCTOBER 1, 1981. A license issued to a pawnshop before October 1, 1981, remains valid as long as the pawnbroker complies with this chapter. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 371.064. LICENSE FEE; EXPIRATION. (a) Not later than the 30th day before the date the license expires, a pawnbroker shall pay to the commissioner for each license held a fee in an amount determined as provided by Section 14.107. (b) If the fee for a license is not paid befor…

Sec. 371.0645. GROUNDS FOR REFUSAL TO RENEW. The commissioner may refuse to renew the license of a person who fails to comply with an order issued by the commissioner to enforce this chapter. Added by Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 70, eff. September 1, 201…

Sec. 371.066. TEMPORARY LICENSE. (a) The commissioner may issue a temporary pawnshop license on receipt of an application: (1) to transfer a license from one person to another; or (2) for a license involving principals and owners that are substantially identical to those of a paw…

Sec. 371.067. CONTENTS AND DISPLAY OF LICENSE. (a) A license must state: (1) the name of the pawnbroker; and (2) the address at which the business is to be conducted. (b) A pawnbroker shall display a license at the place of business provided on the license. Acts 1997, 75th Leg., …

Sec. 371.068. MULTIPLE PLACES OF BUSINESS. (a) A separate pawnshop license is required for each place of business operated under this chapter. (b) The commissioner may issue more than one license to a person if the person complies with this chapter for each license. Acts 1997, 75…

Sec. 371.069. CHANGE OF OWNERSHIP. (a) An application for an original pawnshop license or the transfer of a pawnshop license is required if a change in direct or beneficial ownership of a licensed pawnshop occurs. (b) This section does not apply to a change in direct or beneficia…

Sec. 371.070. TRANSFER OR ASSIGNMENT OF LICENSE. A pawnshop license may be transferred or assigned only with the approval of the commissioner. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 371.071. APPLICATION FOR RELOCATION. A pawnbroker who wishes to move a pawnshop from the location provided on the license must make application to the commissioner before the 30th day preceding the date the pawnbroker moves. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept.…

Sec. 371.072. NET ASSETS REQUIREMENT. (a) Except as provided by Subsection (b), a pawnbroker shall maintain net assets of at least $150,000 that are used or readily available for use in the business of each pawnshop. (b) A pawnbroker who held a license under this chapter before S…

Sec. 371.073. APPOINTMENT OF AGENT. (a) A pawnbroker shall maintain on file with the commissioner the name and address of the pawnbroker's registered agent for service of process. (b) Repealed by Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 34(4), eff. September 1, 2023.…

Sec. 371.074. PAWNBROKER RESPONSIBLE FOR EMPLOYEES AND AGENTS. A license holder under this subchapter is responsible for all acts of the license holder's officers, directors, employees, and agents acting on behalf of the pawnshop. Added by Acts 2019, 86th Leg., R.S., Ch. 767 (H.B…

Sec. 371.101. PAWNSHOP EMPLOYEE LICENSE PROGRAM. (a) A pawnbroker may, but is not required to, participate in the pawnshop employee license program by notifying the commissioner in writing on a form prescribed by the commissioner. (a-1) A pawnbroker may submit a written notificat…

Sec. 371.102. ELIGIBILITY. (a) To be eligible for a pawnshop employee license, an individual must: (1) be of good business repute; (2) possess the character and general fitness necessary to warrant belief that the individual will operate the business lawfully and fairly under thi…

Sec. 371.103. LICENSE APPLICATION; FEES. (a) An application for a pawnshop employee license must state: (1) the applicant's name and address; (2) the name of the pawnshop at which the applicant is employed; (3) whether the applicant has: (A) been convicted of or is under indictme…

Sec. 371.104. APPROVAL OR DENIAL OF APPLICATION. (a) Not later than the 60th day after the date an application is filed, the commissioner shall determine whether the applicant qualifies for a pawnshop employee license. (b) The commissioner shall approve the application and issue …

Sec. 371.105. LICENSE TERM. A pawnshop employee license is valid for the period prescribed by finance commission rule adopted under Section 14.112. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by: Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 76, ef…

Sec. 371.106. LICENSE FEE; EXPIRATION. (a) Not later than the 30th day before the date the license expires, a pawnshop employee license holder shall pay to the commissioner a fee in an amount determined as provided by Section 14.107. (b) The commissioner shall send written notice…

Sec. 371.107. GROUNDS FOR REFUSAL TO RENEW. The commissioner may refuse to renew the pawnshop employee license of a person who fails to comply with an order issued by the commissioner to enforce this chapter. Added by Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 78, eff.…

Sec. 371.151. HOURS OF OPERATION. (a) A pawnbroker shall maintain normal business hours of at least four hours a day for five days a week. (b) A pawnbroker may not do business before 7 a.m. or after 9 p.m. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 371.152. RECORDKEEPING. (a) A pawnbroker, consistent with accepted accounting practices, shall keep adequate books and records relating to the pawnbroker's pawn transactions and any other business regulated by this chapter. (b) Books and records shall be preserved at least u…

Sec. 371.153. NOTICE OF OPERATION OF OTHER BUSINESS. (a) A pawnbroker shall notify the commissioner before the pawnbroker allows another person to conduct at the pawnshop a business other than the business of a pawnbroker or the business of buying and selling goods. (b) The commi…