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.