Texas House bill by Rep. McQueeney sets rules for commercial sales-based financing disclosures

Passed bill authored by State Rep. John McQueeney aims to regulate commercial sales-based financing by requiring disclosure of financial details and setting registration standards for brokers, seeking to enhance transparency and oversight, according to the Texas Legislature website.

In the House, 27 Democrats and 71 Republicans voted in favor of the bill, while 15 Democrats and eight Republicans opposed it.

Meanwhile, in the Senate, 11 Democrats and 20 Republicans voted in favor, with no opposing votes.

John McQueeney introduced the bill in the Texas House on Friday, March 14, during the 89th regular legislative session.

McQueeney graduated from Texas Christian University with a BA.

McQueeney, a Republican, was elected to the Texas State House in 2025 to represent the state’s 97th House district, replacing previous state representative Craig Goldman.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to disclosures for certain commercial sales-based financing transactions, the effect of certain commercial sales-based financing contract provisions, and the registration of commercial sales-based financing brokers and providers; authorizing a fee and providing a civil penalty’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, the bill establishes regulations and disclosure requirements for commercial sales-based financing transactions in Texas, mandating that providers disclose specific financial details for transactions exceeding $500,000. It defines roles such as providers and brokers, establishes exemptions for certain financial institutions, and sets registration requirements for brokers, including the payment of fees and updates to registration information. Violations may incur civil penalties up to $100,000 for multiple offenses and are deemed deceptive trade practices. The Texas Department of Banking will oversee the chapter’s implementation, taking effect Sept. 1, 2025, with interim deadlines set for rule adoption and broker registration.

The bill received its final legislative approval on Wednesday, May 28, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.