SRC-AMY S.B. 324 78(R) BILL ANALYSIS Senate Research Center S.B. 324 78R3907 CLG-FBy: Armbrister Business & Commerce 2/26/2003 As Filed 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. As proposed, 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 393.002(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 2. Effective date: upon passage or September 1, 2003.