By:  Ellis                                            S.B. No. 1781

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to delinquency charges in retail charge agreements.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Article 6.03(6)(c), Title 79, Revised Statutes

 1-4     (Article 5069-6.03, Vernon's Texas Civil Statutes), is amended to

 1-5     read as follows:

 1-6           (c)  The time price differential in a retail charge agreement

 1-7     resulting from the computation under this Section shall be computed

 1-8     utilizing the average daily balance method.  A minimum time price

 1-9     differential not in excess of 75 cents per month may be charged,

1-10     received, and collected for any billing cycle in which a balance is

1-11     due.  Under this Section, a retail charge agreement may provide for

1-12     a delinquency charge on each installment in default for a period of

1-13     more than 21 days in an amount not to exceed $20 [$10].  Only one

1-14     such delinquency charge may be collected on any installment

1-15     regardless of the period during which it remains in default.  In

1-16     addition, such retail charge agreement may provide for the payment

1-17     of an attorney's reasonable fee when it is referred for collection

1-18     to an attorney who is not a salaried employee of the holder of the

1-19     contract and for court costs and disbursements.

1-20           SECTION 2.  The importance of this legislation and the

1-21     crowded condition of the calendars in both houses create an

 2-1     emergency and an imperative public necessity that the

 2-2     constitutional rule requiring bills to be read on three several

 2-3     days in each house be suspended, and this rule is hereby suspended,

 2-4     and that this Act take effect and be in force from and after its

 2-5     passage, and it is so enacted.