BWM H.B. 2105 75(R)BILL ANALYSIS


FINANCIAL INSTITUTIONS
H.B. 2105
By: Woolley
3-20-97
Committee Report (Unamended)



BACKGROUND 

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
keep track of how many of these organizations are actually in operation.
Compounding this problem is the practice of some credit organizations
opening several locations under one filing fee and one security deposit. 

PURPOSE

As proposed, HB 2105 specifies that a certificate of registration is to be
valid for one year and may be renewed on an annual basis. It also
clarifies the security deposit requirement by stipulating that a security
deposit is to be filed for each location. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.Amends  18.03, Business & Commerce Code, to specify that in
those situations where a security deposit is required, the credit services
organization must obtain a security deposit for each of its locations. 

SECTION 2.Amends  18.05, Business & Commerce Code, by adding subsection
(e), which states that the certificate of registration is valid for one
year and may be renewed on an annual basis.  It also provides, in
subsection (f), for a renewal fee not to exceed $100.00. 
 
SECTION 3.Effective date: September 1, 1997.

SECTION 4.Emergency clause.