SRC-LBB, AMY S.B. 324 78(R)BILL ANALYSIS


Senate Research CenterS.B. 324
By: Armbrister
Business & Commerce
8/24/2003
Enrolled


DIGEST AND PURPOSE 

Currently, Texas law exempts from the Credit Services Organization Act
certain organizations licensed by the Consumer Credit Commission
(commission). Authorized Internal Revenue Service (IRS) e-file providers,
which facilitate loans on behalf of certain lending institutions, were
formerly licensed by the commission and exempt from the Credit Services
Organization Act.  Authorized IRS e-file providers are no longer licensed
by the commission; consequently, it is now unclear whether Texas law
exempts those providers from the Credit Services Organization Act. S.B.
324 exempts authorized IRS e-file providers from the Credit Services
Organization Act. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 156.202, Finance Code, as follows:

Sec.  156.202.  EXEMPTIONS.  Provides that this chapter does not apply to
certain entities and individuals. 

SECTION 2.  Amends Subsection (a), Finance Code, to include in the list of
persons exempt from regulation as a credit services organization, an
electronic return originator who is an authorized Internal Revenue Service
e-file provider and who makes, negotiates, arranges for, or transacts a
loan based on a person's federal income tax refund on behalf of certain
lending institutions. Makes nonsubstantive changes. 

SECTION 3.  Effective date: upon passage or September 1, 2003.