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.