88R12989 SRA-F     By: Lambert H.B. No. 4219       A BILL TO BE ENTITLED   AN ACT   relating to the maximum rate or amount of interest of certain   consumer loans.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 342.201, Finance Code, is amended by   amending Subsection (e) and adding Subsections (e-2) and (e-3) to   read as follows:          (e)  A loan contract under this chapter that is not secured   by real property may provide for a rate or amount of interest   computed using the true daily earnings method or the scheduled   installment earnings method that does not exceed:                (1)  30 percent plus the federal funds rate a year on   that part of the cash advance that is less than or equal to the   amount computed under Subchapter C, Chapter 341, using the   reference base amount of $500;                (2)  24 percent plus the federal funds rate a year on   that part of the cash advance that is more than the amount computed   for Subdivision (1) but less than or equal to an amount computed   under Subchapter C, Chapter 341, using the reference base amount of   $1,050; and                (3)  18 percent plus the federal funds rate a year on   that part of the cash advance that is more than the amount computed   for Subdivision (2) but less than or equal to an amount computed   under Subchapter C, Chapter 341, using the reference base amount of   $2,500.          (e-2)  On March 1 and September 1 of each year, the   commissioner shall compute the ceilings applicable under   Subsection (e) for the six-month period effective the following May   1 and November 1, respectively. As prescribed by this subsection,   the ceilings are effective for the six-month period beginning on   the effective date and are subject to adjustment after each   six-month period. The commissioner shall submit to the secretary   of state for publication in the Texas Register the ceilings   computed under this subsection not later than the 11th day after the   date on which the ceiling is computed.          (e-3)  For purposes of this section:                (1)  "Ceiling" means the maximum rate or amount of   interest.                (2)  "Federal funds rate" means an interest rate   computed by averaging the Federal Funds rates published by the   Federal Reserve Bank of New York for each day during the six   calendar months preceding the computation date of the ceilings,   except that if that average:                      (A)  is greater than five percent, the federal   funds rate is five percent; and                      (B)  is less than zero percent, the federal funds   rate is zero percent.          SECTION 2.  The change in law made by this Act applies only   to a loan made on or after the effective date of this Act. A loan   made before the effective date of this Act is governed by the law in   effect on the date the loan was made, and the former law is   continued in effect for that purpose. For purposes of this section,   a refinance or renewal of a loan is considered made on the date the   loan being refinanced or renewed was made.          SECTION 3.  This Act takes effect September 1, 2023.