Amends TCA Title 45, Chapter 1; Title 45, Chapter 12 and Title 45, Chapter 17.

This bill requires the department of financial institutions to implement a common database with real-time access through an internet connection for persons who are licensed to offer flex loan plans pursuant to the Flexible Credit Act and persons who are licensed to provide deferred presentment services pursuant to the Deferred Presentment Services Act (referred to in the bill and this summary as "licensees"). This bill authorizes the department to enter into a contract with a single-source private vendor to develop and operate the database. The stated purpose of the database is to prevent persons from seeking deferred presentment services in amounts exceeding the aggregate limits and amounts permitted in present law, and from seeking more than one flex loan plan at a time in violation of present law.<br /> <br /> Under this bill, on or after January 1, 2020, a licensee must submit certain data to the department or the database vendor about a person seeking deferred presentment services or a flex loan plan, as applicable, before entering into a transaction and when a transaction has been paid in full. The licensee must submit the required data within 24 hours following its receipt.<br /> <br /> On or after July 1, 2019, the following will apply under this bill:<br /> <br /> (1) The department will impose a fee on a licensee not to exceed 56 cents per transaction for data required to be submitted by the licensee. The department will use these funds to develop, implement, and maintain the database. The department will use any funds in excess of the amount needed to develop, implement, and maintain the database for the sole purpose of promoting financial literacy in this state; and<br /> (2) A licensee who is assessed a fee for a transaction may charge the customer seeking the transaction an amount equal to the fee, which will be in addition to any other interest, fee, or charge authorized for such transaction.<br /> <br /> This bill specifies that a licensee will rely on the information contained in the database as accurate and will not be subject to any administrative penalty or civil liability as a result of relying on inaccurate information contained in the database. With certain exceptions, the information in the database will be confidential and not subject to the open records law.<br /> <br /> This bill requires licensees to disclose to customers that the licensee will use the data to determine if the customer has other plans or transactions, as applicable, that exceed those allowed by law. Licensees must also disclose that it is a Class C misdemeanor to make a false or misleading statement to a licensee.<br /> <br /> After providing the above disclosures, a licensee will review the database and submit information regarding the plan or transaction at issue. The licensee must submit, at a minimum:<br /> <br /> (1) The customer's name, social security number or employment authorization alien number, address, and driver license number;<br /> (2) The amount of the transaction, date of transaction, and date that the transaction is closed; and<br /> (3) Any additional information required by the department.<br /> <br /> If the database shows that the customer has not exceeded limits allowed under the Flexible Credit Act or Deferred Presentment Services Act, then the licensee may complete the plan or transaction with the customer.<br /> <br /> A licensee who, with intent to deceive, makes any false or misleading entry in the database will be subject to the administrative penalties provided by the respective law governing the licensee.<br /> <br /> A licensee may only use the information provided in the database to determine if a customer is eligible or ineligible and to describe the reason for the determination of eligibility or ineligibility. In addition to the database check, a licensee may also require a customer to represent in writing that the customer has no outstanding flex loan plans.<br /> <br /> No later than January 1, 2021, the database must be accessible to the department of financial institutions and licensees to meet the requirements of this bill.<br /> <br />