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.