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A BILL TO BE ENTITLED
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AN ACT
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relating to a contract or other agreement between certain |
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governmental entities and a credit services organization or related |
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business. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 2252, Government Code, is |
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amended by adding Section 2252.909 to read as follows: |
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Sec. 2252.909. CERTAIN CONTRACTS PROHIBITED. (a) In this |
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section: |
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(1) "Credit access business" has the meaning assigned |
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by Section 393.601, Finance Code. |
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(2) "Credit services organization" has the meaning |
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assigned by Section 393.001, Finance Code. |
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(3) "Governmental entity" includes a municipality, a |
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county, a state agency, and a toll project entity as defined by |
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Section 372.001, Transportation Code. |
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(b) A governmental entity may not enter into any contract or |
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other agreement with: |
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(1) a credit access business or other credit services |
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organization; |
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(2) a business that operates in the same retail space |
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as a credit access business or other credit services organization; |
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or |
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(3) a business that is owned by a business entity that |
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owns a credit access business or other credit services |
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organization. |
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(c) A business that enters into any contract or other |
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agreement with a governmental entity may not subcontract with a |
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credit access business or other credit services organization to |
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perform work under the contract or agreement. |
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(d) A governmental entity shall include, as a term of any |
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contract or other agreement entered into by the entity, a provision |
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that prohibits a party to the contract or agreement from |
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subcontracting with a credit access business or other credit |
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services organization to perform work under the contract or |
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agreement. |
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SECTION 2. The change in law made by this Act applies only |
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to a contract or other agreement that is entered into or renewed on |
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or after the effective date of this Act. A contract or other |
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agreement entered into or renewed before the effective date of this |
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Act is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |