By Elkins                                             H.B. No. 2410
       74R4232 CLG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to compensation allowed for services performed by a credit
    1-3  services organization; imposing a sales tax.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 18.07, Business & Commerce Code, is
    1-6  amended by adding Subsection (e) to read as follows:
    1-7        (e)  Notwithstanding Article 3.15, 4.01, or 5.02, Title 79,
    1-8  Revised Statutes (Article 5069-1.01 et seq., Vernon's Texas Civil
    1-9  Statutes), a credit services organization may receive, and a buyer
   1-10  may pay, compensation, including applicable sales tax, for the
   1-11  credit services organization's brokering or guaranteeing a loan for
   1-12  the buyer or arranging a loan or other extension of credit for the
   1-13  buyer only if no person has an ownership interest in or serves as a
   1-14  director or officer of both the lender and the credit services
   1-15  organization.
   1-16        SECTION 2.  Subchapter A, Chapter 151, Tax Code, is amended
   1-17  by adding Section 151.00345 to read as follows:
   1-18        Sec. 151.00345.  "CREDIT SERVICES ORGANIZATION LOAN SERVICE".
   1-19  "Credit services organization loan service" means the brokering,
   1-20  arranging, or guaranteeing of a loan or other extension of credit
   1-21  by a credit services organization registered under Chapter 18,
   1-22  Business & Commerce Code.
   1-23        SECTION 3.  Section 151.0101(a), Tax Code, is amended to read
   1-24  as follows:
    2-1        (a)  "Taxable services" means:
    2-2              (1)  amusement services;
    2-3              (2)  cable television services;
    2-4              (3)  personal services;
    2-5              (4)  motor vehicle parking and storage services;
    2-6              (5)  the repair, remodeling, maintenance, and
    2-7  restoration of tangible personal property, except:
    2-8                    (A)  aircraft;
    2-9                    (B)  a ship, boat, or other vessel, other than:
   2-10                          (i)  a taxable boat or motor as defined by
   2-11  Section 160.001;
   2-12                          (ii)  a sports fishing boat; or
   2-13                          (iii)  any other vessel used for pleasure;
   2-14                    (C)  the repair, maintenance, and restoration of
   2-15  a motor vehicle; and
   2-16                    (D)  the repair, maintenance, creation, and
   2-17  restoration of a computer program, including its development and
   2-18  modification, not sold by the person performing the repair,
   2-19  maintenance, creation, or restoration service;
   2-20              (6)  telecommunications services;
   2-21              (7)  credit reporting services;
   2-22              (8)  debt collection services;
   2-23              (9)  insurance services;
   2-24              (10)  information services;
   2-25              (11)  real property services;
   2-26              (12)  data processing services;
   2-27              (13)  real property repair and remodeling;
    3-1              (14)  security services; <and>
    3-2              (15)  telephone answering services; and
    3-3              (16)  credit services organization loan services.
    3-4        SECTION 4.  This Act applies only to a loan contract made on
    3-5  or after the effective date of this Act.  A loan contract made
    3-6  before the effective date of this Act is covered by the law in
    3-7  effect when the loan contract was made, and the former law is
    3-8  continued in effect for that purpose.
    3-9        SECTION 5.  This Act takes effect October 1, 1995.
   3-10        SECTION 6.  The importance of this legislation and the
   3-11  crowded condition of the calendars in both houses create an
   3-12  emergency and an imperative public necessity that the
   3-13  constitutional rule requiring bills to be read on three several
   3-14  days in each house be suspended, and this rule is hereby suspended.