Bill > HB4738

This bill modifies sections 342.201 and 342.308 of the Texas Finance Code by eliminating the requirement that lenders deposit a portion of administrative fees with the comptroller. Currently, when lenders charge administrative fees for certain loans (up to $25 for loans over $1,000 and $20 for loans of $1,000 or less), they are required to deposit either $1 (for loans over $1,000) or 50 cents (for loans of $1,000 or less) with the comptroller to support the finance commission's responsibilities. The bill removes these mandatory remittance provisions, meaning lenders can now keep the full administrative fee. The administrative fee remains defined as a non-refundable charge earned when a loan is made or refinanced, with restrictions on how often it can be charged (no more than once in 180 days, or once in 365 days for certain loans with specific interest charges). The bill will take effect on January 1, 2026, and does not affect any tax liabilities that accrued before its effective date.

Budget and Finance, Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4738