By:  Armbrister                                       S.B. No. 1181
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to credit service organizations.
    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.