| (a) An application for issuance of a new pawnshop license
must be submitted in a format prescribed by the OCCC at the date of
filing and in accordance with the OCCC's instructions. The OCCC may
accept the use of prescribed alternative formats in order to accept
approved electronic submissions. Appropriate fees must be filed with
the application, and the application must include the following:
(1) Required application information. All questions
must be answered.
(A) Application for license.
(i) Location. A physical street address must be listed
for the proposed location for which the applicant can show proof of
ownership or an executed lease agreement. A post office box or a mail
box location at a private mail-receiving service may not be used except
for a physical location that does not receive general mail delivery.
An application for a new license is not permitted if the address or
the full legal property description has not yet been determined or
the application is for an inactive license.
(ii) Compliance officer. The application must list
a compliance officer. The compliance officer must be an individual
responsible for overseeing compliance, and must be authorized to receive
and respond to communications from the OCCC.
(iii) Signature. Electronic signatures will be accepted
in a manner approved by the commissioner. Each applicant must have
the application signed by an authorized individual.
(B) Owners and principal parties.
(i) Proprietorships. The applicant must disclose the
name of any individual holding an ownership interest in the business
and the name of any individual responsible for operating the business.
If requested, the applicant must also disclose the names of the spouses
of these individuals.
(ii) General partnerships. Each partner must be listed
and the percentage of ownership stated. If a general partner is wholly
or partially owned by a legal entity and not a natural person, a narrative
or diagram must be included that lists the names and titles of all
meeting the definition of "managerial official," as contained in Texas
Business Organizations Code, §1.002, and a description of the
ownership of each legal entity must be provided. General partnerships
that register as limited liability partnerships should provide the
same information as that required for general partnerships.
(iii) Limited partnerships. Each partner, general and
limited, must be listed and the percentage of ownership stated.
(I) General partners. The applicant should provide
the complete ownership, regardless of percentage owned, for all general
partners. If a general partner is wholly or partially owned by a legal
entity and not a natural person, a narrative or diagram must be included
that lists the names and titles of all meeting the definition of "managerial
official," as contained in Texas Business Organizations Code, §1.002,
and a description of the ownership of each legal entity must be provided.
(II) Limited partners. The applicant should provide
a complete list of all limited partners owning 5% or more of the partnership.
(III) Limited partnerships that register as limited
liability partnerships. The applicant should provide the same information
as that required for limited partnerships.
(iv) Corporations. Each officer and director must be
named. Each shareholder holding 5% or more of the voting stock must
be named if the corporation is privately held. If a parent corporation
is the sole or part owner of the proposed business, a narrative or
diagram must be included that describes each level of ownership of
5% or greater.
(v) Limited liability companies. Each "manager," "officer,"
and "member" owning 5% or more of the company, as those terms are
defined in Texas Business Organizations Code, §1.002, and each
agent owning 5% or more of the company must be listed. If a member
is a legal entity and not a natural person, a narrative or diagram
must be included that describes each level of ownership of 5% or greater.
(vi) Trusts or estates. Each trustee or executor, as
appropriate, must be listed.
(vii) All entity types. If a parent entity is a different
type of legal business entity than the applicant, the parent entity's
owners and principal parties should be disclosed according to the
parent's entity type.
(C) Disclosure questions. All questions must be answered.
Questions requiring a "yes" answer must be accompanied by an explanatory
statement and any appropriate documentation requested.
(D) Registered agent. The registered agent must be
provided by each applicant. The registered agent is the person or
entity to whom any legal notice may be delivered. The agent must be
a Texas resident and list an address for legal service. If the registered
agent is a natural person, the address must be a different address
than the licensed location address. If the applicant is a corporation
or a limited liability company, the registered agent should be the
registered agent on file with the Texas Secretary of State. If the
registered agent is not the same as the registered agent filed with
the Texas Secretary of State, then the applicant must submit certification
from the secretary of the company identifying the registered agent.
(E) Personal affidavit. Each individual meeting the
definition of "principal party" as defined in §85.102 of this
title (relating to Definitions) must provide a personal affidavit.
All requested information must be provided.
(F) Personal questionnaire. Each individual meeting
the definition of "principal party" as defined in §85.102 of
this title must provide a personal questionnaire. Each question must
be answered. If any question, except question 1, is answered "yes,"
an explanation must be provided.
(G) Employment history. Each individual meeting the
definition of "principal party" as defined in §85.102 of this
title must provide an employment history. Each principal party should
provide a continuous 10-year history, accounting for time spent as
a student, unemployed, or retired. The employment history must also
include the individual's association with the entity applying for
the license.
(H) Statement of experience. Each applicant for a new
license should provide a statement setting forth the details of the
applicant's prior experience in the pawn or credit-granting business.
If the applicant or its principal parties do not have significant
experience in the pawnshop business as planned for the prospective
licensee, the applicant must provide a written statement explaining
the applicant's relevant background, why the commissioner should find
that the applicant has the requisite experience, and how the applicant
plans to obtain the necessary knowledge to operate lawfully and fairly.
(I) Financial statement and supporting financial information.
(i) All entity types. The financial statement must
be dated no earlier than 60 days prior to the date of application
submission. Applicants may also submit audited financial statements
dated within one year prior to the application date in lieu of completing
the supporting financial information. All financial statements must
be certified as true, correct, and complete. If requested, a bank
confirmation to confirm account balance information with financial
institutions must be submitted. All financial statements must reflect
the net assets as defined in the Texas Pawnshop Act, §371.003
of at least the lesser of the following amounts:
(I) As required in the Texas Pawnshop Act, §371.072(a),
$150,000; or
(II) The amount required by the Texas Pawnshop Act, §371.072(b)
as the license existed or should have existed under the law and rules
in effect on August 31, 1999. A change in net asset requirement occurs
with respect to any change of ownership or other event causing a change
in the net asset requirement that may have occurred prior to September
1, 1999. The change in the net asset requirement is effective as of
the date of change of ownership or other event causing the change
of the net asset requirement.
(ii) Sole proprietorships. Sole proprietors must complete
all sections of the financial statement and supporting financial information,
or provide a personal financial statement that contains all of the
same information requested by the financial statement and supporting
financial information. The financial statement and supporting financial
information must be as of the same date.
(iii) Partnerships. A balance sheet for the partnership
itself as well as each general partner must be submitted. In addition,
the information requested in the supporting financial information
must be submitted for the partnership itself and each general partner.
All of the balance sheets and supporting financial information documents
for the partnership and all general partners must be as of the same
date.
(iv) Corporations and limited liability companies.
Corporations and limited liability companies must file a balance sheet
that complies with generally accepted accounting principles (GAAP).
The information requested in the supporting financial information
must be submitted. The balance sheet and supporting financial information
must be as of the same date. Financial statements are generally not
required of related parties, but may be required by the commissioner
if the commissioner believes they are relevant. The financial information
for the corporation or limited liability company applicant should
contain no personal financial information.
(v) Trusts and estates. Trusts and estates must file
a balance sheet that complies with generally accepted accounting principles
(GAAP). The information requested in the supporting financial information
must be submitted. The balance sheet and supporting financial information
must be as of the same date. Financial statements are generally not
required of related parties, but may be required by the commissioner
if the commissioner believes they are relevant. The financial information
for the trust or estate applicant should contain no personal financial
information.
(J) Assumed name certificates. For an applicant that
does business under an "assumed name" as that term is defined in Texas
Business and Commerce Code, §71.002, an assumed name certificate
must be filed as provided in this subparagraph.
(i) Unincorporated applicants. Unincorporated applicants
using or planning to use an assumed name must file an assumed name
certificate with the county clerk of the county where the proposed
business is located in compliance with Texas Business and Commerce
Code, §71.002. An applicant must provide a copy of the assumed
name certificate that shows the filing stamp of the county clerk or,
alternatively, a certified copy.
(ii) Incorporated or limited partnership applicants.
Incorporated or limited partnership applicants using or planning to
use an assumed name must file an assumed name certificate in compliance
with Texas Business and Commerce Code, §71.002. Evidence of the
filing bearing the filing stamp of the Texas Secretary of State must
be submitted or, alternatively, a certified copy.
(2) Other required filings.
(A) Fingerprints.
(i) For all persons meeting the definition of "principal
party" as defined in §85.102 of this title, a complete set of
legible fingerprints must be provided. All fingerprints should be
submitted in a format prescribed by the OCCC and approved by the Texas
Department of Public Safety and the Federal Bureau of Investigation.
(ii) For limited partnerships, if the owners and principal
parties under paragraph (1)(B)(iii)(I) of this subsection does not
produce a natural person, the applicant must provide a complete set
of legible fingerprints for individuals who are associated with the
general partner as principal parties.
(iii) For entities with complex ownership structures
that result in the identification of individuals to be fingerprinted
who do not have a substantial relationship to the proposed applicant,
the applicant may submit a request to fingerprint three officers or
similar employees with significant involvement in the proposed business.
The request should describe the relationship and significant involvement
of the individuals in the proposed business. The agency may approve
the request, seek alternative appropriate individuals, or deny the
request.
(iv) For individuals who have previously been licensed
by the OCCC and principal parties of entities currently licensed,
fingerprints are generally not required if the fingerprints are on
record with the OCCC, are less than 10 years old, and have been processed
by both the Texas Department of Public Safety and the Federal Bureau
of Investigation. Upon request, individuals and principal parties
previously licensed by the OCCC may be required to submit a new set
of fingerprints.
(v) For individuals who have previously submitted fingerprints
to another state agency (e.g., Texas Department of Savings and Mortgage
Lending), fingerprints are still required to be submitted under Texas
Finance Code, §14.152. Fingerprints cannot be disclosed to others,
except as authorized by Texas Government Code, §560.002.
(B) Entity documents.
(i) Partnerships. A partnership applicant must submit
a complete and executed copy of the partnership agreement. This copy
must be signed and dated by all partners. If the applicant is a limited
partnership or a limited liability partnership, provide evidence of
filing with the Texas Secretary of State and a certificate of good
standing from the Texas Comptroller of Public Accounts.
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