1-1     By:  Ellis                                            S.B. No. 1781

 1-2           (In the Senate - Filed March 14, 1997; March 24, 1997, read

 1-3     first time and referred to Committee on Economic Development;

 1-4     April 15, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 6, Nays 1; April 15, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1781                   By:  Ellis

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to delinquency charges in retail charge agreements.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Subsection (c), Section (6), Article 6.03, Title

1-13     79, Revised Statutes (Article 5069-6.03, Vernon's Texas Civil

1-14     Statutes), is amended to read as follows:

1-15           (c)  The time price differential in a retail charge agreement

1-16     resulting from the computation under this Section shall be computed

1-17     utilizing the average daily balance method.  A minimum time price

1-18     differential not in excess of 75 cents per month may be charged,

1-19     received, and collected for any billing cycle in which a balance is

1-20     due.  Under this Section, a retail charge agreement may provide for

1-21     a delinquency charge on each installment in default for a period of

1-22     more than 21 days in an amount not to exceed $20 [$10].  Only one

1-23     such delinquency charge may be collected on any installment

1-24     regardless of the period during which it remains in default.  In

1-25     addition, such retail charge agreement may provide for the payment

1-26     of an attorney's reasonable fee when it is referred for collection

1-27     to an attorney who is not a salaried employee of the holder of the

1-28     contract and for court costs and disbursements.

1-29           SECTION 2.  The importance of this legislation and the

1-30     crowded condition of the calendars in both houses create an

1-31     emergency and an imperative public necessity that the

1-32     constitutional rule requiring bills to be read on three several

1-33     days in each house be suspended, and this rule is hereby suspended,

1-34     and that this Act take effect and be in force from and after its

1-35     passage, and it is so enacted.

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