Texas Senate Bill SB836

Texas 2017 - 85th Regular

Caption

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

Impact

The passage of SB836 would have significant implications for state laws regarding fiscal relationships between government entities and businesses in the credit services sector. By enforcing restrictions on government contracting, the bill seeks to prevent potential conflicts of interest and the potential for exploitation of vulnerable populations. This law would apply to new contracts and renewals entered into on or after the effective date, thereby providing an immediate legal framework to restrict dealings with specific types of businesses involved in offering credit services.

Summary

SB836 is a legislative proposal that aims to restrict governmental entities from entering into contracts or agreements with credit services organizations or credit access businesses. The bill adds Section 2252.909 to the Government Code, which clearly outlines the definitions of relevant terms such as credit access business and governmental entity. It prohibits governmental entities from engaging in any contracts with businesses that are directly associated with credit access businesses or those that operate in the same space, thereby attempting to shield the government from firms that may engage in predatory lending practices.

Contention

While the bill seeks to promote ethical standards in government contracting, it may also raise concerns regarding the availability of credit services to individuals seeking assistance in obtaining credit. Critics might argue that such restrictions could limit options for those who rely on credit services offered by legitimate businesses. Furthermore, the bill's language might lead to confusion over which businesses qualify as credit services organizations, potentially stifling a range of services that could benefit consumers.

Notable_points

SB836 reflects ongoing legislative efforts to regulate the interactions between governmental entities and the credit services industry, particularly in light of growing concerns over predatory lending practices. The bill's implementation may necessitate increased oversight and compliance mechanisms for governmental entities to ensure adherence to the new restrictions. This is particularly relevant in a financial climate where consumers are increasingly reliant on credit, making it vital for legislation to strike a balance between regulation and access to necessary services.