74R8582 E By Giddings H.B. No. 860 Substitute the following for H.B. No. 860: By Giddings C.S.H.B. No. 860 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the furnishing of certain credit information by certain 1-3 lessors and used vehicle dealers. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 20, Title 132, Revised Statutes, is 1-6 amended by adding Article 9017 to read as follows: 1-7 Art. 9017. REPORTING CREDIT INFORMATION TO CREDIT REPORTING 1-8 BUREAU 1-9 Sec. 1. DEFINITIONS. In this article: 1-10 (1) "Consumer lease" has the meaning assigned by 1-11 Section 2A.103, Business & Commerce Code. 1-12 (2) "Credit reporting bureau" means a person or 1-13 organization engaged in the practice of assembling or reporting 1-14 credit information on individuals for the purpose of furnishing 1-15 that information to third parties. 1-16 (3) "First sale" has the meaning assigned by Section 1-17 7, Certificate of Title Act (Article 6687-1, Vernon's Texas Civil 1-18 Statutes). 1-19 (4) "Light truck," "motorcycle," and "passenger car" 1-20 have the meanings assigned by Section 2, Uniform Act Regulating 1-21 Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes). 1-22 (5) "Person" means an individual, association, or 1-23 corporation. 1-24 (6) "Credit information" means information concerning 2-1 a person's timely and sufficient payment history under a contract 2-2 for credit or other information relating to the person's 2-3 performance under the contract. 2-4 (7) "Used vehicle dealer" means a person in the 2-5 business of the retail sale of light trucks, motorcycles, or 2-6 passenger cars that have been the subject of a first sale in this 2-7 state, another state, or another country. 2-8 Sec. 2. APPLICATION OF ARTICLE TO LEASES. This article 2-9 applies only to the following leases: 2-10 (1) a consumer lease for a term of seven days or more; 2-11 or 2-12 (2) a lease of a light truck, motorcycle, or passenger 2-13 car for a term of 180 days or more. 2-14 Sec. 3. REPORT OF CREDIT INFORMATION TO CREDIT REPORTING 2-15 BUREAU. A used vehicle dealer, a lessor engaged in the business of 2-16 leasing a light truck, motorcycle, or passenger car to the public, 2-17 or a lessor under a consumer lease, who as a creditor under a 2-18 contract for credit or lessor under a lease furnishes to a credit 2-19 reporting bureau any credit information about any individual who 2-20 contracts with the used vehicle dealer or lessor, shall furnish to 2-21 the bureau all credit information about all individuals who 2-22 contract with the used vehicle dealer or lessor that arises from 2-23 the contracts. 2-24 Sec. 4. REINVESTIGATION OF DISPUTED INFORMATION. Any person 2-25 reporting credit information under this article shall: 2-26 (1) designate one or more persons to receive and 2-27 process requests from the credit reporting bureau regarding the 3-1 reverification of information; and 3-2 (2) respond to requests made by the credit reporting 3-3 bureau in a timely manner. 3-4 SECTION 2. This Act takes effect September 1, 1995. 3-5 SECTION 3. The importance of this legislation and the 3-6 crowded condition of the calendars in both houses create an 3-7 emergency and an imperative public necessity that the 3-8 constitutional rule requiring bills to be read on three several 3-9 days in each house be suspended, and this rule is hereby suspended.