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


Senate Research CenterC.S.S.B. 689
76R10902 WP-FBy: Carona
Economic Development
4/7/1999
Committee Report (Substituted)


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 regulated
under the Act.  C.S.S.B. 689 would exempt qualified persons, who operate
electronic bill payment services, from the licensing requirements in the
Sale of Check Act. 

PURPOSE

As proposed, C.S.S.B. 689 exempts qualified 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, to redefine "check."
Authorizes the commissioner to exempt certain persons from licensing
requirements if certain conditions are met. Provides that the exempted
person is subject to any penalties under this chapter for operating without
a license if it is later determined that the person did not qualify for the
exemption. 

SECTION 3. Effective date: September 1, 1999.

SECTION 4.Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.  
 
 Amends Section 152.002, Finance Code, to redefine "account."

SECTION 2.  

Amends Section 152.202, Finance Code, by deleting proposed Subsection (b)
regarding a transfer of funds. 

Amends Section 152.202, Finance Code, by adding Subsections (b)(3) and (c),
redefines "check," and requires the commissioner to exempt certain persons
from the licensing requirement.  Provides that the exempted person is
subject to penalties if the person did not qualify for the exemption.