BILL ANALYSIS H.B. 1094 By: Heflin 2-28-95 Committee Report (Unamended) BACKGROUND Section 6(c) of Article 5069-6.03 allows a retailer to assess a delinquency charge, on an account more than 10 days past due, the lesser amount of five percent or five dollars. Since the enactment of this provision, it has been found that neither of these amounts is sufficient for a retailer to recover the actual costs of servicing late accounts. PURPOSE The purpose of H.B. 1094 is to amend Article 5069-6.03, Section 6(c), by changing the delinquency charge language to $10.00. 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 Section 6(c) of Article 5069-6.03, VTCS, by deleting language on delinquency charge which sets the amount at the lesser of five percent or five dollars, and caps the delinquency charge amount at $10.00. SECTION 2. Emergency clause. SUMMARY OF COMMITTEE ACTION H.B. 1094 was considered by the Business and Industry Committee in a public hearing on February 28, 1995. Testifying for the bill were Jim McCollum, representing JCPenney, and Terry Talley, representing Foley's Department Store. Testifying on the bill was Leslie Pettijohn, representing The Office of the Consumer Credit Commissioner. Testifying against the bill were Robert Schneider, representing Consumers Union, and Tom Smith, representing Public Citizens. The bill was reported favorably without amendment with the recommendation that it do pass and be printed, by a record vote of nine (9) ayes, 0 nays, 0 present-not-voting, 0 absent. SUMMARY OF COMMITTEE ACTION