BILL ANALYSIS C.S.H.B. 1094 By: Heflin (Armbrister) Economic Development 05-17-95 Senate Committee Report (Substituted) BACKGROUND Current law allows a retailer to assess a delinquency charge of five percent or $5, whichever is less, on an account more than 10 days past due. Since passage, it has been found that neither of these amounts is sufficient for a retailer to recover the costs of servicing late accounts. PURPOSE As proposed, C.S.H.B. 1094 authorizes a retail charge agreement to provide for a delinquency charge on each installment in default for a period of more than 21 days in an amount not to exceed $10. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 5069-6.03(c), V.T.C.S., to authorize a retail charge agreement to provide for a delinquency charge on each installment in default for a period of more than 21 days, instead of 10, in an amount not to exceed $10, rather than the lesser of five percent of each installment or $5. SECTION 2. Emergency clause. Effective date: upon passage.