SRC-JBJ S.B. 689 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 689
By: Carona
Economic Development
4/5/1999
As Filed


DIGEST 

Currently, the Sale of Check Act regulates a person or business selling
checks and requires them to be licensed to conduct a regulated activity.
However, businesses that transfer funds electronically are also captured
under the Act.  S.B. 689 would exempt qualified persons, who operate
electronic bill payment services, from the licensing requirement in the
Sale of Check Act. 

PURPOSE

As proposed, S.B. 689 exempts certain persons in the businesses of
electronic funds transfers from the Sale of Checks Act. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 152.002, Finance Code, by defining "account."
Makes conforming changes. 

SECTION 2.  Amends Section 152.202, Finance Code, by providing that Section
152.201 does not apply to any transfer of funds that is subject to 12
C.F.R. Part 205, Regulation E, if the person receiving authorization to
debit or credit an account meets certain conditions.  Makes conforming
changes.   

SECTION 3. Effective date: September 1, 1999.

SECTION 4.Emergency clause.