By: Armbrister S.B. No. 1181
A BILL TO BE ENTITLED
1-1 relating to credit service organizations.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 18.03(1), Credit Services Organizations
1-4 Act (Sections 18.01-18.15, Vernon's Texas Civil Statutes) is
1-5 amended to read as follows:
1-6 Sec. 18.03. Prohibited Conduct
1-7 A credit services organization, a salesperson, agent, or
1-8 representative of a credit services organization, or an independent
1-9 contractor who sells or attempts to sell the services of a credit
1-10 services organization may not:
1-11 (1) charge a buyer or receive from a buyer money or
1-12 other valuable consideration before completing performance of all
1-13 services the credit services organization has agreed to perform for
1-14 the buyer, unless the credit services organization has obtained in
1-15 accordance with Section 18.04 of this code a surety bond for each
1-16 of its locations, in the amount required by Section 18.04(e) issued
1-17 by a surety company authorized to do business in this state or
1-18 established and maintained a surety account at a federally insured
1-19 bank or savings and loan association located in this state in which
1-20 the amount required by Section 18.04(e) is held in trust as
1-21 required by Section 18.04(c);
1-22 SECTION 2. Section 18.05(e) and (f), Credit Services
1-23 Organizations Act (Sections 18.01-18.15, Vernon's Texas Civil
2-1 Statutes) is amended to read as follows:
2-2 Sec. 18.05. Registration
2-3 (e) A certificate of registration issued under this Act is
2-4 valid for one year from the date of issuance. A registered credit
2-5 services organization may renew the registration by filing a
2-6 renewal application in the form prescribed by the secretary of
2-7 state, accompanied by the renewal fee.
2-8 (f) <
(e)> The secretary of state may charge each credit
2-9 services organization that files a registration statement or a
2-10 renewal statement with the secretary of state a reasonable fee not
2-11 to exceed $100.00 to cover the cost of filing. The secretary of
2-12 state may not require a credit services organization to provide
2-13 information other than that provided in the registration statement.
2-14 (g) < (f)> The bond or surety account shall be maintained
2-15 until two years after the date that the credit services
2-16 organization ceases operations.
2-17 SECTION 3. This Act takes effect September 1, 1995.
2-18 SECTION 4. The importance of this legislation and the
2-19 crowded condition of the calendars in both houses create an
2-20 emergency and an imperative public necessity that the
2-21 constitutional rule requiring bills to be read on three several
2-22 days in each house be suspended, and this rule is hereby suspended.