C.S.S.B. 1181
                                                   By: Armbrister
                                             Economic Development
                                   Committee Report (Substituted)

Current law requires a credit services organization to register
with the secretary of state before doing business in this state,
but it does not provide for the expiration of the registration.


As proposed, C.S.S.B. 1181 makes a certificate of registration for
a credit services organization under this Act valid for one year,
and authorizes the organization to renew its certificate.


It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or


SECTION 1. Amends Section 18.03(1), Business and Commerce Code, to
provide that a credit services organization (organization), which
has obtained a surety bond for each of its locations under Section
18.04 to do business in this state or established and maintained a
surety account for each of its locations at a federally insured
bank or savings and loan in this state in which the amount required
by Section 18.04(e) is held as required by Section 18.04(c), is
exempt from the prohibition against an organization's charging or
receiving money from a buyer before completing performance of
agreed services.

     (2)-(6) Make no change.
SECTION 2. Amends Sections 18.05, Business and Commerce Code, as

     (e) Validates a certificate of registration under this Act for
     one year from the date of issuance.  Authorizes a registered
     organization to renew registration by filing a renewal
     application and paying the renewal fee.
     (f) Authorizes the secretary of state to charge each
     organization that files a renewal statement a reasonable fee
     to cover the filing cost.  Redesignates existing Subsection
     (g) Redesignates existing Subsection (f).
     SECTION 3.     Effective date: September 1, 1995.

SECTION 4. Emergency clause.