BILL ANALYSIS



C.S.H.B. 860
By: Giddings
3-7-95
Committee Report (Substituted)


BACKGROUND

Certain lease businesses who report credit report only negative or
"bad" credit information on their customers while not reporting
customers who consistently make their payments.  By not reporting
positive or "good" credit information, customers are left without
a positive credit history.

PURPOSE

This bill insures fair reporting of a customer's credit by
requiring a business which reports to a credit reporting agency any
"bad" credit on any customer to report all "good" credit of all
customers as well.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS


SECTION 1 - Amends Chapter 20, Title 132, Revised Statutes by
         adding Article 9017 to read as follows:

         ARTICLE 9017.  REPORTING CREDIT INFORMATION TO CREDIT
         REPORTING BUREAU. 

         Article 9017, Section 1. DEFINITIONS.  Defines "consumer
         lease", "credit reporting bureau", "first sale", "light
         truck", "person", "positive credit information", and "used
         vehicle dealer".

         Article 9017, Section 2.  APPLICATION OF ARTICLE TO LEASES. 
         Defines a consumer lease to be one for a term of 30 days or
         more or a lease of a light truck, motorcycle, or passenger car
         for a term of 180 days or more.

         Article 9017, Section 3.  REPORT OF POSITIVE CREDIT
         INFORMATION TO CREDIT REPORTING BUREAU.  Any used vehicle
         dealer or person who reports negative or "bad" credit on any
         of its customers shall also report positive or "good" credit
         on all of its customers.

SECTION 2 - Effective date September 1, 1995

SECTION 3 - Emergency Clause


COMPARISON OF ORIGINAL TO SUBSTITUTE

    Article 9017, Section 1, Subsection 6.  Strikes "Positive" in the definition and the wording
    "that indicates the person is creditworthy and has good credit standing or capacity."

    Article 9017, Section 2, Subsection 1.  Defines a consumer lease as a lease with a term of 7
    days or more.

    Article 9017, Section 3.  Strikes the word "Positive" in the title.  The substitute version
    requires a lessor to report all credit information about all individuals if the lessor reports any
    credit information about any individual.

    Article 9017, Section 3, Subsection 2.  Removed in its entirety.

SUMMARY OF COMMITTEE ACTION

H.B. 860 was considered in public hearing on February 28, 1995.  The committee considered a
complete substitute for H.B. 860.  Testifying on H.B. 860, and its substitute were Leslie Pettijohn,
representing The Office of the Consumer Credit Commissioner; and Bill Keese, representing The
Association of Progressive Rental Organization.  The Chair left H.B. 860, and its substitute, pending
before the committee.  H.B. 860, and its substitute, were considered again in public hearing on
March 7, 1995.  1 (one) amendment was offered to the substitute.  Amendment #1 was adopted by
a record vote of 6 (six) ayes, 0 (zero) nays, 0 (zero) present-not-voting, 3 (three) absent.  The Chair
instructed the staff to incorporate the amendment into the substitute.  H.B. 860 was reported
favorably as substituted, with the recommendation that it do pass and be printed, by a record vote
of 6 (six) ayes, 0 (zero) nays, 0 (zero) present-not-voting, 3 (three) absent.