By Gallegos S.B. No. 1137
74R4231 DWS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the collection of certain fees charged by a credit
1-3 services organization in connection with certain regulated loans;
1-4 imposing a sales tax.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section (8), Article 3.15, Title 79, Revised
1-7 Statutes (Article 5069-3.15, Vernon's Texas Civil Statutes), is
1-8 amended to read as follows:
1-9 (8) In addition to the authorized charges provided in this
1-10 chapter no further or other charge or amount whatsoever shall be
1-11 directly, or indirectly, charged, contracted for, or received.
1-12 This includes (but is not limited by) all charges such as fees,
1-13 compensation, bonuses, commissions, brokerage, discounts, expenses
1-14 and every other charge of any nature whatsoever, whether of the
1-15 types listed herein or not. Without limitation of the foregoing,
1-16 such charges may be any form of costs or compensation whether
1-17 contracted for or not, received by the lender, or any other person,
1-18 in connection with (a) the investigating, arranging, negotiation,
1-19 procuring, guaranteeing, making, servicing, collecting or enforcing
1-20 of a loan; or (b) for the forbearance of money, credit, goods or
1-21 things in action; or (c) for any other service or services
1-22 performed or offered. However, the prohibition set out herein
1-23 shall not apply to amounts actually incurred by an authorized
1-24 lender as court costs; attorney fees assessed by a court; lawful
2-1 fees for filing, recording, or releasing in any public office any
2-2 security for a loan; the reasonable cost actually expended for
2-3 repossessing, storing, preparing for sale, or selling any security;
2-4 <or> fees for noting a lien on or transferring a certificate of
2-5 title to any motor vehicle offered as security for a loan made
2-6 under this Chapter;<, or> premiums or identifiable charge received
2-7 in connection with the sale of insurance authorized under this
2-8 Chapter; or a reasonable fee paid to a credit services organization
2-9 registered under Chapter 18, Business & Commerce Code, for
2-10 procuring, arranging, or guaranteeing a loan made under this
2-11 Chapter, including applicable sales tax, if no person has an
2-12 ownership interest in or serves as a director of both the lender
2-13 and the credit services organization.
2-14 SECTION 2. Subchapter A, Chapter 151, Tax Code, is amended
2-15 by adding Section 151.0037 to read as follows:
2-16 Sec. 151.0037. "CREDIT SERVICES ORGANIZATION LOAN SERVICE."
2-17 "Credit services organization loan service" means the procuring,
2-18 arranging, or guaranteeing of a loan by a credit services
2-19 organization registered under Chapter 18, Business & Commerce Code.
2-20 SECTION 3. Section 151.0101(a), Tax Code, is amended to read
2-21 as follows:
2-22 (a) "Taxable services" means:
2-23 (1) amusement services;
2-24 (2) cable television services;
2-25 (3) personal services;
2-26 (4) motor vehicle parking and storage services;
2-27 (5) the repair, remodeling, maintenance, and
3-1 restoration of tangible personal property, except:
3-2 (A) aircraft;
3-3 (B) a ship, boat, or other vessel, other than:
3-4 (i) a taxable boat or motor as defined by
3-5 Section 160.001;
3-6 (ii) a sports fishing boat; or
3-7 (iii) any other vessel used for pleasure;
3-8 (C) the repair, maintenance, and restoration of
3-9 a motor vehicle; and
3-10 (D) the repair, maintenance, creation, and
3-11 restoration of a computer program, including its development and
3-12 modification, not sold by the person performing the repair,
3-13 maintenance, creation, or restoration service;
3-14 (6) telecommunications services;
3-15 (7) credit reporting services;
3-16 (8) debt collection services;
3-17 (9) insurance services;
3-18 (10) information services;
3-19 (11) real property services;
3-20 (12) data processing services;
3-21 (13) real property repair and remodeling;
3-22 (14) security services; <and>
3-23 (15) telephone answering services; and
3-24 (16) credit services organization loan services.
3-25 SECTION 4. This Act applies only to a loan contract made or
3-26 fee charged on or after the effective date of this Act. A loan
3-27 contract made or fee charged before the effective date of this Act
4-1 is covered by the law in effect when the loan contract was made or
4-2 the fee was charged, and the former law is continued in effect for
4-3 that purpose.
4-4 SECTION 5. This Act takes effect October 1, 1995.
4-5 SECTION 6. The importance of this legislation and the
4-6 crowded condition of the calendars in both houses create an
4-7 emergency and an imperative public necessity that the
4-8 constitutional rule requiring bills to be read on three several
4-9 days in each house be suspended, and this rule is hereby suspended.