BILL ANALYSIS C.S.S.B. 1181 By: Armbrister Economic Development 04-06-95 Committee Report (Substituted) BACKGROUND 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. PURPOSE 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. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS 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 follows: (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 (e). (g) Redesignates existing Subsection (f). SECTION 3. Effective date: September 1, 1995. SECTION 4. Emergency clause.