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.