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.