SRC-JXG H.B. 744 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 744
76R10154 WP-DBy: Eiland (Bernsen)
Economic Development
5/3/1999
Engrossed


DIGEST 

Currently, Texas law does not allow credit card issuers to charge an annual
fee and limits fees for returned checks to $15. No other fees are
authorized. Also, credit card issuers based in Texas may not charge
interest at an annual rate that exceeds certain statutory percentages. H.B.
744 would provide that an interest rate would be identical to the interest
rate on consumer installment loans, and would establish several authorized
fees with a cap on each fee. 

PURPOSE

As proposed, H.B. 744 provides an interest fee identical to the interest
rate on consumer installment loans, and establishes several authorized fees
with a cap on each fee, as relates to certain revolving credit accounts. 

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 Section 346.101(a), Finance Code, to delete text
regarding certain percentages of the average daily balance of a revolving
credit account. 

SECTION 2. Amends Section 346.103, Finance Code, to set forth certain fees
to be charged to or collected from a customer in connection with an
account. Prohibits a creditor from charging, contracting for, or receiving
interest on fees authorized under this section. Deletes text regarding a
revolving credit account. 

SECTION 3. Amends Section 346.103, Finance Code,  to set forth certain fees
to be charged to or collected from a customer in connection with an
account. Prohibits a creditor form charging, contracting for, or receiving
interest on fees authorized under this section. Deletes text regarding
certain revolving credit accounts. 

SECTION 4. Amends Section 345.157, Finance Code, by amending Subsection (b)
and adding Subsection (d), as follows: 

 (b) Prohibits the amount of a delinquency charge from exceeding $15,
rather than $10. 

(d) Requires the holder to remit 50 cents of each delinquency charge in
excess of $10 collected under this section to the comptroller, in the time
and manner established by the comptroller, for deposit to the credit of an
account in the general revenue fund. Authorizes one-half of the money in
the account to be appropriated only to finance research conducted by the
finance commission under Section 11.305 and the other one-half of the money
in the account to be appropriated only to finance educational activities
and counseling services under Section 394.001. 

SECTION 5. Repealer: Section 303.009(e), Finance Code.

SECTION 6. (a) Effective date: September 1, 1999, except as provided by
Subsections (b) and (c)  of this section. 

(b) Provides that Sections 2 and 5 of this Act take effect only if the Act
of the 76th Legislature, Regular Session, 1999, relating to nonsubstantive
additions to and corrections in enacted codes, takes effect. 

(c) Provides that Section 3 of this Act takes effect only if the Act of the
76th Legislature, Regular Session, 1999, relating to nonsubstantive
additions to and corrections in enacted codes, does not take effect. 

SECTION 6. Emergency clause.