HBA-KDB, RKM H.B. 198 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 198 By: Averitt Financial Institutions 6/12/2001 Enrolled BACKGROUND AND PURPOSE Under current law, the acquisition charge on a small cash consumer loan (loan) of $100 or less is not refundable. However, prior to the 77th Legislature, on loans in excess of $100, the $10 acquisition charge was subject to refund in the event of early prepayment. House Bill 198 repeals the provision that refunds the $10 acquisition charge on loans in excess of $100. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 198 amends the Finance Code to provide that an acquisition charge is considered to be earned at the time a loan is made and is no longer subject to refund on cash advances of more than $100 in a loan contract. EFFECTIVE DATE September 1, 2001.