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.