HB 4738

relating to the elimination of the portion of the Loan
Administration Fee remitted to the comptroller.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 342.201(f), Finance Code, is amended to
(f)  A loan contract under this subchapter may provide for an
administrative fee in an amount not to exceed $25 for a loan of more
than $1,000 or $20 for a loan of $1,000 or less.  The administrative
fee is considered earned when the loan is made or refinanced and is
not subject to refund. An administrative fee is not interest.  A
lender refinancing the loan may not contract for or receive an
administrative fee for the loan more than once in any 180-day
period, except that if the loan has an interest charge authorized by
Subsection (e) the lender may not contract for or receive the
administrative fee more than once in any 365-day period.  [One
dollar of each administrative fee may be deposited with the
comptroller for use in carrying out the finance commission's
responsibilities under Section 11.3055.]
SECTION 2.  Section 342.308(c), Finance Code, is amended to
(c)  An administrative fee under Subsection (a)(9) is
considered earned when the loan is made or refinanced and is not
subject to refund.  A lender refinancing the loan may not contract
for or receive an administrative fee for the loan more than once in
any 180-day period.  [Fifty cents of each administrative fee may be
deposited with the comptroller for use in carrying out the finance
commission's responsibilities under Section 11.3055.]
SECTION 3.  The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act.  That liability continues in effect as if this article had not
been enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
SECTION 4.  EFFECTIVE DATE OF ARTICLE.  Except as otherwise
provided by this article, this article takes effect January 1,