HBA-TYH S.B. 689 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 689
By: Carona
Financial Institutions
4/28/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, The Sale of Checks Act (Act) regulates a person or business
selling checks and requires them to be licensed to conduct a regulated
activity.  However, businesses that transfer funds electronically are also
regulated under the Act.  S.B. 689 exempts qualified persons, who operate
electronic bill payment services, from the licensing requirements in The
Sale of Checks Act. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 152.002, Finance Code, by defining "account."
Makes conforming changes. 

SECTION 2.  Amends Section 152.202, Finance Code, to provide that Section
152.201 (License Required) does not apply to a transfer of funds that is
subject to Regulation E (12 C.F.R. Part 205 (Electronic Fund Transfer)), if
the person receiving authorization to debit or credit an account is subject
to audit, considered an acceptable risk, or registered with the Securities
and Exchange Commission.  Requires the banking commissioner of Texas to
exempt certain persons from licensing requirements if certain conditions
are met.  Provides that the exempted person is subject to any penalties
under this chapter (Check Sellers) for operating without a license if it is
later determined that the person did not qualify for the exemption. 

SECTION 3. Effective date: September 1, 1999.

SECTION 4.Emergency clause.