Texas House Bill HB2273

Texas 2015 - 84th Regular

Caption

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

Impact

The enactment of HB 2273 will primarily affect future contracts and agreements made by governmental entities, including state agencies and toll project entities. The law stipulates that any contracts entered into or renewed after the effective date of the Act, set for September 1, 2015, will be subject to the new restrictions. Agreements that predate this date will remain governed by the previous legal framework, thus allowing for some continuity in existing contractual relationships.

Summary

House Bill 2273 establishes new regulations regarding contracts between governmental entities and credit services organizations or credit access businesses in the state of Texas. The legislation explicitly prohibits these governmental entities from entering into any agreements with the aforementioned organizations. This bill aims to enhance oversight and potentially mitigate risks associated with the financial services provided by these entities to the public.

Contention

Notable points of contention surrounding HB 2273 revolve around concerns that the legislation may limit the flexibility and resources available to governmental entities when seeking credit services. Critics argue that such restrictions could hinder municipal operations, particularly in financing public projects that could benefit from the services provided by credit access businesses. Proponents, however, contend that the bill is necessary to protect public funds and maintain integrity in government spending, addressing the perceived exploitation of vulnerable populations by credit services organizations.