85R6865 TSR-D

By: Rodríguez S.B. No. 836

A BILL TO BE ENTITLED

AN ACT

relating to a contract or other agreement between certain governmental entities and a credit services organization or related business.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter Z, Chapter 2252, Government Code, is amended by adding Section 2252.909 to read as follows:

Sec. 2252.909. CERTAIN CONTRACTS PROHIBITED. (a) In this section:

(1) "Credit access business" has the meaning assigned by Section 393.601, Finance Code.

(2) "Credit services organization" has the meaning assigned by Section 393.001, Finance Code.

(3) "Governmental entity" includes a municipality, a county, a state agency, and a toll project entity as defined by Section 372.001, Transportation Code.

(b) A governmental entity may not enter into any contract or other agreement with:

(1) a credit access business or other credit services organization;

(2) a business that operates in the same retail space as a credit access business or other credit services organization; or

(3) a business that is owned by a business entity that owns a credit access business or other credit services organization.

(c) A business that enters into any contract or other agreement with a governmental entity may not subcontract with a credit access business or other credit services organization to perform work under the contract or agreement.

(d) A governmental entity shall include, as a term of any contract or other agreement entered into by the entity, a provision that prohibits a party to the contract or agreement from subcontracting with a credit access business or other credit services organization to perform work under the contract or agreement.

SECTION 2. The change in law made by this Act applies only to a contract or other agreement that is entered into or renewed on or after the effective date of this Act. A contract or other agreement entered into or renewed before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2017.