Scaler Technologies_
    [01]_TEXAS HB 700

    Texas HB 700 Compliance Automation — Before the Dec 31, 2026 Deadline.

    Texas HB 700 is now in force, with implementing rules effective July 9, 2026, and a hard registration deadline: providers and brokers of commercial sales-based financing must register with the Texas OCCC through NMLS by December 31, 2026. It also voids confession-of-judgment provisions outright and restricts automatic ACH debits unless the provider holds a valid, perfected, first-priority security interest. This is a narrow, active compliance window, not a someday problem — and it applies to brokers, not just funders. We build the disclosure, registration-tracking, and payment-authorization workflow changes to get you compliant before the window closes.

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    HB 700's underlying statute took effect September 1, 2025; its implementing rules take effect July 9, 2026; and providers and brokers of commercial sales-based financing must register through NMLS by December 31, 2026 — a specific, dated compliance sequence, not an open-ended future obligation.

    Texas HB 700 (89th Legislature) and OCCC implementing rules, as publicly enacted — not legal advice, and not a Scaler client result.

    [02]_The cost of doing nothing

    The registration deadline is fixed. Your process for meeting it isn't, yet.

    • 01HB 700 requires both providers and brokers of commercial sales-based financing to register through NMLS by December 31, 2026 — broker registration is a distinct, easy-to-underestimate obligation, not something covered automatically by a funder's own registration.
    • 02The implementing rules take effect July 9, 2026, adding a detailed compliance framework on top of the underlying statute, which means the specific operational requirements are new enough that most shops' current processes weren't built around them.
    • 03Automatic ACH debits are now restricted unless the provider holds a valid, perfected, first-priority security interest — a payment-collection mechanism many shops currently rely on by default, without having confirmed their security-interest status meets the new bar.
    • 04Confession-of-judgment provisions are void and unenforceable under the law — contracts and templates still relying on COJ language as a recovery mechanism in Texas transactions need to be updated, not just noted as a risk.
    • 05Missing the registration deadline, continuing an ACH structure that no longer qualifies, or running Texas transactions on outdated contract language creates civil penalty exposure under a law that's specifically designed with enforcement teeth.
    [03]_How it works

    Live in days, not months.

    01

    Assess

    We map your current Texas transaction volume, ACH/debit structure, and contract language against HB 700's actual requirements and the July 9, 2026 implementing rules.

    02

    Track

    We build the registration-tracking workflow that keeps your NMLS filing status, renewal dates, and any broker-specific obligations visible and on schedule ahead of the December 31, 2026 deadline.

    03

    Update

    We rebuild the disclosure and contract templates and payment-authorization logic for Texas transactions to reflect the ACH restriction and the confession-of-judgment prohibition.

    04

    Maintain

    We keep the process current as the OCCC issues further guidance or amended rules, so a first-mover compliance posture doesn't quietly drift out of date.

    [04]_What changes

    Compliant in Texas before the deadline — and ahead of competitors still figuring this out.

    • NMLS registration for both provider and broker roles tracked and on schedule, not discovered as a gap close to the deadline.
    • ACH and payment-authorization structure reviewed against the new security-interest requirement, so collection mechanics don't quietly become non-compliant.
    • Contract and disclosure templates updated to remove unenforceable confession-of-judgment language and reflect required disclosures.
    • A documented compliance process ahead of a law most competitors are still reacting to reactively, which is itself a credibility advantage with Texas-facing funders and merchants.
    • Ongoing monitoring so amended rules or OCCC guidance get incorporated as they come, instead of leaving you compliant on day one and exposed by month six.
    [05]_FAQ

    Questions, answered.

    Both. HB 700 explicitly requires registration of commercial sales-based financing brokers, not just providers — a distinction that's easy to miss if you're only tracking your funder partners' compliance status and assuming it covers you.

    Not automatically, but the law restricts automatic ACH debits unless the provider holds a valid, perfected, first-priority security interest — that's a specific legal and operational bar, and we recommend confirming your structure meets it with counsel rather than assuming an existing ACH setup already qualifies.

    No — we're not a law firm and this isn't legal advice. We build the operational systems (registration tracking, disclosure generation, contract/template updates, payment-authorization workflow) around requirements confirmed by your own compliance counsel.

    Providers and brokers of commercial sales-based financing must register with the Texas OCCC through NMLS by December 31, 2026, with the implementing rules taking effect July 9, 2026 — both dates matter, since the rules add operational detail on top of the underlying registration requirement.

    It adds to them — Texas now sits alongside California, New York, and the other states that already require commercial financing disclosures, each with its own rules. If you transact across multiple states, see our multi-state disclosure compliance automation for the broader picture.

    We review your current Texas transaction volume, ACH structure, contract templates, and registration status against HB 700's specific requirements, and map exactly what needs to change before the deadlines above.
    [07]_Related pages

    Book a free scoping call.

    Twenty minutes, no pitch deck. We'll map exactly how this would run for your business and what it'd recover. Prefer to read more first? See our AI automation services.

    Free scoping consult

    See what it would recover

    Tell us where to reach you and we'll show you exactly how it'd work — no cost, no pressure.