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.