Senate Research Center   H.B. 2105
By: Woolley (Ellis)
Economic Development


Current law requires credit service organizations to make a one time, $100
filing with the secretary of state's office, but the present lack of a
renewal requirement makes it difficult for the secretary of state's office
to keep track of how many of these organizations are actually in
operation. Compounding this problem is the practice of some credit
organizations of opening several locations under one filing fee and one
security deposit.  H.B. 2105 specifies that a certificate of registration
is valid for one year and may be renewed on an annual basis.  This bill
also clarifies the security deposit requirement by stipulating that a
security deposit is to be filed for each location.   


As proposed, H.B. 2105 provides for the regulation of credit service


This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 


SECTION 1. Amends Section 18.03, Business & Commerce Code, to prohibit a
credit services organization, certain representatives of a credit services
organization, or an independent contractor who sells the services of such
an organization from charging or receiving from a buyer money or other
valuable consideration before completing all buyer services, unless the
organization has obtained a surety bond for each of its locations, or
established and maintained a surety account for each of its locations.   

SECTION 2. Amends Section 18.05, Business & Commerce Code, by amending and
redesignating Subsections (e) and (f) as Subsections (f) and (g), and
adding a new Subsection (e), to provide that a certificate of registration
issued under this chapter is valid for one year after its date of
issuance. Authorizes a registered credit services organization to renew
its registration by filing an application for renewal in the form
prescribed by the secretary of state accompanied by the renewal fee.
Authorizes the secretary of state to charge each organization that files a
renewal application a certain fee.  Makes a conforming change. 

SECTION 3. Sets forth the terms by which a registration statement under
Chapter 18, Business & Commerce Code, that is in effect on the effective
date of this Act is valid until September 1, 1998. Authorizes the
secretary of state to provide that registration statements renewed on
September 1, 1998, expire on different dates during the year.  Requires
the secretary of state to prorate the registration fee if the secretary of
state changes the expiration date.  Provides that the total renewal
registration fee is payable when the registration is renewed on the new
expiration date. 

SECTION 4. Effective date:  September 1, 1997.

SECTION 5. Emergency clause.