Texas Register, Volume 37, Number 35, Pages 6819-7008, August 31, 2012 Page: 6,853
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audit finding, the agency has clarified that while fingerprints are
not generally required for these individuals, they may be required
under certain circumstances. Fingerprints are not required if "fin-
gerprints are on record with the OCCC, are less than 10 years
old, and have been processed by both the Texas Department
of Public Safety and the Federal Bureau of Investigation." Fin-
gerprints may be requested in order to complete the agency's
Regarding the entity documents under 84.602(2)(C), several
changes have been made in order to increase the efficiency of
the licensing process. The provisions under current (2)(C)(ii)(ll)
and (111) and (2)(C)(iv)(ll) and (111) require that applicants pro-
vide copies of the relevant portions of bylaws, operating agree-
ments, and minutes addressing the number and election of of-
ficers and directors. The agency recognizes that these docu-
ments are only necessary in limited situations. Thus, these pro-
visions have been shifted to the end of each respective provision
and language has been added to reflect that such documents
should only be provided upon request. The relocated provisions
are proposed in 84.602(2)(C)(ii)(IV) and (V) and (2)(C)(iv)(IV)
To further streamline the licensing process, the current require-
ments in 84.602(2)(C)(ii)(IV)(-a-) and (2)(C)(iv)(IV)(-a-) are pro-
posed for deletion. The current provisions require applicants to
provide minutes electing the statutory agent. Upon review of
the licensing process, the agency can streamline the process
for verification of the registered agent by certification from the
secretary of the company. Additionally, the verification of good
standing may be obtained either directly from the Texas Comp-
troller of Public Accounts or upon request to the licensee if the
Comptroller does not have an online record of the company.
Thus, the phrase "if requested" has been added to proposed
84.602(2)(C)(ii)(VI) and (2)(C)(iv)(VI).
Updates have been made to proposed 84.602(2)(D) to include
revised citations to the Texas Business and Commerce Code
provisions concerning assumed name certificates, as relocated
during the 2009 legislative session. Parallel changes have been
made to update the citations contained in 84.603 concerning
Technical corrections have been made to 84.603, New Regis-
tered Offices; 84.604, Transfer of License; and to 84.607, Re-
portable Actions After Application. In particular, these changes
provide parallel formatting and improve grammar, punctuation,
and internal references.
Revisions have been made to 84.605, Change in Form or
Proportionate Ownership, and 84.609, Relocation of Licensed
Offices, to minimize unnecessary transfer applications and
revise the procedure to notify the agency of certain business
changes. In cases involving changes in organizational form
and mergers resulting in different parent entities, the current
language in 84.605(a) and (b) requiring a transfer has been
revised to instead only require a license amendment and
payment of the accompanying fee under 84.611. Similarly, a
license amendment and fee requirement have been added to
84.605(c) when a change in proportionate ownership results
in the exact same owners still owning the business (absent
an owner crossing the 10% ownership threshold), as well as
84.609(c) when a licensed office is relocated.
In 84.605 and 84.607, the deadlines for licensees to notify the
agency of certain actions have been revised. In both sections
the deadline for notifying the agency has been extended to 14
days rather than the current 10 days after the date of the event.
Section 84.608 describes how an application for a motor vehi-
cle sales finance license is processed, including a description
of when an application is complete, as well as an explanation
of what may occur if an applicant fails to complete an applica-
tion. Subsection (a) has been revised for this proposal to clarify
when a response will be provided by the agency, as follows: "A
response to an incomplete application will ordinarily be made
within 14 calendar days of receipt stating that the application is
incomplete and specifying the information required for accep-
tance." In addition, technical corrections to improve grammar
and citations have been made to 84.608.
Section 84.610, License Status, includes technical amendments
to improve clarity and grammar. Clarification has been added
with regard to license expiration in 84.610(d) in order to bet-
ter track the statutory provisions found in Texas Finance Code,
As discussed earlier, proposed changes have been made to
other sections requiring that a license amendment be filed in
certain situations. Accordingly, these situations have been
added to the fee provision concerning license amendments.
Thus, 84.611(d) has been amended with the following phrases
added before "or relocating a licensed location": "changing
the organizational form or proportionate ownership, providing
notification of a new parent entity." In subsection (e), the phrase
"not to exceed" has been added so that annual fees may be dis-
counted when appropriate. Additionally, technical corrections to
84.611 include changes to improve punctuation and grammar.
The following sections contain technical corrections: 84.613,
Effect of Criminal History Information on Applicants and Li-
censees; 84.614, Crimes Directly Related to Fitness for
License; Mitigating Factors; 84.702, Prohibited Advertising;
84.704, Correction of Errors or Violations; 84.705, Unclaimed
Funds; and 84.706, Follow-up Examination Fees. Of note,
the revisions remove unnecessary language, revise internal
regulation references, provide updated federal legal citations,
provide clarification, and improve grammar and punctuation.
Several parallel changes are proposed throughout the record-
keeping rules, 84.707 - 84.709. In 84.707 (applicable to
dealers that assign their contracts) and 84.708 (applicable to
dealers that collect on their contracts), a clarification regarding
the retention of certain retail installment contracts is proposed
for addition at the end of each respective subsection (b). The
proposed addition reads as follows: "This requirement includes
any retail installment sales contract signed by a retail buyer for a
vehicle that has been delivered, including contracts that are sub-
sequently voided or canceled after a seller regains possession
and ownership of the vehicle."
The proposed language refers to situations where a buyer has
signed the contract and the vehicle has already been delivered,
but an event occurs resulting in the seller regaining possession
and ownership of the vehicle and voiding or canceling the con-
tract. In other words, this amendment is intended to capture situ-
ations where a retail installment transaction must be "unwound."
The addition clarifies that these consummated contracts should
be maintained, regardless of any subsequent actions that later
void or cancel them. When conducting prior investigations or
examinations, the agency has often not had access to these
"unwound" contracts, which are frequent sources of complaints.
Thus, the agency believes by clarifying which contracts must be
PROPOSED RULES August 31, 2012 37 TexReg 6853
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Texas. Secretary of State. Texas Register, Volume 37, Number 35, Pages 6819-7008, August 31, 2012, periodical, August 31, 2012; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth253227/m1/35/: accessed January 22, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting UNT Libraries Government Documents Department.