85R6865 TSR-D
By: Neave H.B. No. 3508
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.