SRC-AAA C.S.S.B. 1781 75(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1781
By: Ellis
Economic Development
4-14-97
Committee Report (Substituted)


DIGEST 

Currently, Texas law limits delinquency charges on retail credit accounts
to $10.  Texas limits on delinquency charges puts Texas retailers at a
significant disadvantage as they compete against out-ofstate retailers.
This bill would provide that delinquency charges not exceed $20. 

PURPOSE

As proposed, C.S.S.B. 1781 limits delinquency charges in retail charge
agreements to $20. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 79, Article 5069-6.03, V.T.C.S., to prohibit a
delinquency charge on an installment in default for a period of more than
21 days from exceeding $20, rather than $10. 

SECTION 2. Emergency clause.
  Effective date: upon passage.

SUMMARY OF COMMITTEE CHANGES

Makes no changes.