By Pitts                                              H.B. No. 3101
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to application of usury laws to certain purchases of
    1-3  accounts receivable.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 1, Title 79, Revised statutes (Article
    1-6  5069-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
    1-7  adding Article 1.14 to read as follows:
    1-8        Art. 1.14  PURCHASES OF ACCOUNTS RECEIVABLE.  (a)  In this
    1-9  article:
   1-10              (1)  "Account service agreement" means an agreement or
   1-11  agreements under which:
   1-12                    (A)  an account service provider purchases
   1-13  accounts receivable from a business at a discount and provides
   1-14  services in relation to billing or collection of the account; and
   1-15                    (B)  the business may be required to repurchase
   1-16  an account
   1-17              (2)  "Account service provider" means an individual,
   1-18  firm, partnership, corporation or other entity purchases and
   1-19  services accounts receivable under an account service agreement.
   1-20              (3)  "Business" means an individual, firm, partnership,
   1-21  corporation or other entity engaged in a commercial enterprise.
   1-22        (b)  For the purposes of this title, the following are not
   1-23  interest:
    2-1              (1)  Any fees paid by a business for services provided
    2-2  by an account service provider in connection with an account
    2-3  service agreement; and
    2-4              (2)  interest accrued on the accounts receivable
    2-5  purchased under an account service agreement and for which the
    2-6  business is not contractually liable under its obligation to
    2-7  repurchase the account.
    2-8        (c)  If any other transaction exists between the account
    2-9  service provider and the business, amounts paid as interest or fees
   2-10  under such transaction may not be imputed to the account service
   2-11  agreement in determining whether this title has been violated, and
   2-12  amounts paid under the account service agreement may not be imputed
   2-13  to such other transaction in determining whether this title has
   2-14  been violated.
   2-15        SECTION 2.  This Act applies to an account service agreement
   2-16  entered before, on, or after the effective date of this Act.
   2-17        SECTION 3.  The importance of this legislation and the
   2-18  crowded condition of the calendars in both houses create an
   2-19  emergency and an imperative public necessity that the
   2-20  constitutional rule requiring bills to be read on three several
   2-21  days in each house be suspended, and that this Act take effect and
   2-22  be in force from and after its passage, and it is so enacted.