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