| 1 | 1 | | 85R6865 TSR-D |
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| 2 | 2 | | By: Neave H.B. No. 3508 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a contract or other agreement between certain |
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| 8 | 8 | | governmental entities and a credit services organization or related |
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| 9 | 9 | | business. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter Z, Chapter 2252, Government Code, is |
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| 12 | 12 | | amended by adding Section 2252.909 to read as follows: |
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| 13 | 13 | | Sec. 2252.909. CERTAIN CONTRACTS PROHIBITED. (a) In this |
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| 14 | 14 | | section: |
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| 15 | 15 | | (1) "Credit access business" has the meaning assigned |
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| 16 | 16 | | by Section 393.601, Finance Code. |
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| 17 | 17 | | (2) "Credit services organization" has the meaning |
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| 18 | 18 | | assigned by Section 393.001, Finance Code. |
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| 19 | 19 | | (3) "Governmental entity" includes a municipality, a |
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| 20 | 20 | | county, a state agency, and a toll project entity as defined by |
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| 21 | 21 | | Section 372.001, Transportation Code. |
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| 22 | 22 | | (b) A governmental entity may not enter into any contract or |
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| 23 | 23 | | other agreement with: |
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| 24 | 24 | | (1) a credit access business or other credit services |
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| 25 | 25 | | organization; |
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| 26 | 26 | | (2) a business that operates in the same retail space |
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| 27 | 27 | | as a credit access business or other credit services organization; |
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| 28 | 28 | | or |
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| 29 | 29 | | (3) a business that is owned by a business entity that |
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| 30 | 30 | | owns a credit access business or other credit services |
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| 31 | 31 | | organization. |
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| 32 | 32 | | (c) A business that enters into any contract or other |
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| 33 | 33 | | agreement with a governmental entity may not subcontract with a |
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| 34 | 34 | | credit access business or other credit services organization to |
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| 35 | 35 | | perform work under the contract or agreement. |
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| 36 | 36 | | (d) A governmental entity shall include, as a term of any |
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| 37 | 37 | | contract or other agreement entered into by the entity, a provision |
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| 38 | 38 | | that prohibits a party to the contract or agreement from |
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| 39 | 39 | | subcontracting with a credit access business or other credit |
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| 40 | 40 | | services organization to perform work under the contract or |
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| 41 | 41 | | agreement. |
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| 42 | 42 | | SECTION 2. The change in law made by this Act applies only |
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| 43 | 43 | | to a contract or other agreement that is entered into or renewed on |
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| 44 | 44 | | or after the effective date of this Act. A contract or other |
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| 45 | 45 | | agreement entered into or renewed before the effective date of this |
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| 46 | 46 | | Act is governed by the law as it existed immediately before the |
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| 47 | 47 | | effective date of this Act, and that law is continued in effect for |
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| 48 | 48 | | that purpose. |
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| 49 | 49 | | SECTION 3. This Act takes effect September 1, 2017. |
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