Starting in 1991, there has been a concerted effort by the Texas Legislature, the Texas financial institutions agencies (i.e., Finance Commission, Credit Union Commission, Office of the Consumer Credit Commissioner, Banking Department, Savings and Loan Department, and Credit Union Department), the Texas Business Law Foundation, Texas Bankers Associations, Independent Bankers Association of Texas, Small Business United, and other interested groups, to modernize and simplify Texas law regarding usury, commercial finance, and consumer finance. The Business Law Section of the State Bar of Texas has assisted as a resource in this reform process, but does not itself lobby for legislation. There were key amendments in almost every session since 1991, especially the usury reform legislation in 1997 that enacted the “Texas Credit Title.” These efforts, as well as the Legislature’s on-going "Codification" project, have resulted in the current Title 4 of the Texas Finance Code, which replaces the old "Texas Credit Code" in Article 5069. While there has been substantial progress toward modernization, Finance Code reform remains a vital area for legislative change.

There were interim study committees of the Senate and House that met during 2004. Legislation is expected during the 2005 session in both the Senate and the House. Attached is Senate Committee on Business and Commerce's report, "Texas Usury Law and Credit Counseling Services," dated December 1, 2004. The House Financial Institutions Committee will also be producing legislation in this area.

If you have an interest in this area, the Commercial Financial Service Committee and the Consumer Financial Services Committee are actively involved in monitoring legislation during the 2005 session.