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Amend CSHB 412 (Senate committee printing) by striking
SECTIONS 1 and 2 of the bill (page 1, line 13 through page 3, line
39) and substituting the following:
SECTION 1. Subchapter A, Chapter 17, Utilities Code, is
amended by adding Sections 17.008 and 17.009 to read as follows:
Sec. 17.008. PROTECTION OF RESIDENTIAL ELECTRIC SERVICE
APPLICANTS AND CUSTOMERS. (a) In this section and in Section
17.009:
(1) "Credit history":
(A) means information regarding an individual's
past history of:
(i) financial responsibility;
(ii) payment habits; or
(iii) creditworthiness; and
(B) does not include an individual's outstanding
balance for retail electric or telecommunications service.
(2) "Credit score" means a score, grade, or value that
is derived by a consumer reporting agency, as defined under Section
603(f) of the Fair Credit Reporting Act (15 U.S.C. Section
1681a(f)), using data from a credit history in any type of model,
method, or program for the purpose of grading or ranking credit
report data, whether derived electronically, from an algorithm,
through a computer software application model or program, or
through any other analogous process.
(3) "Utility payment data" means a measure that is
derived by a consumer reporting agency, as defined under Section
603(f) of the Fair Credit Reporting Act (15 U.S.C. Section
1681a(f)), from a model specifically designed to correlate to
utility payment histories.
(b) A retail electric provider may not deny an applicant's
request to become a residential electric service customer on the
basis of the applicant's credit history or credit score, but may use
the applicant's utility payment data until the later of
January 1, 2007, or the date on which the price to beat is no longer
in effect in the geographic area in which the customer is located.
(c) Notwithstanding Subsection (b), while a retail electric
provider is required to provide service to a geographic area as the
affiliated retail electric provider, the provider may not deny an
applicant's request to become a residential electric service
customer within that geographic area on the basis of the
applicant's credit history, credit score, or utility payment data.
(d) After the date described in Subsection (b), a retail
electric provider, including an affiliated retail electric
provider, may not deny an applicant's request to become a
residential electric service customer on the basis of the
applicant's credit history, credit score, or utility payment data
but may use the applicant's electric bill payment history.
(e) A retail electric provider may not use a credit score, a
credit history, or utility payment data as the basis for
determining the price for month-to-month electric service or
electric service that includes a fixed price commitment of 12
months or less:
(1) for an existing residential customer; or
(2) in response to an applicant's request to become a
residential electric service customer.
(f) After the date described in Subsection (b), on request
by a customer or former customer in this state, a retail electric
provider or electric utility shall timely provide to the customer
or former customer bill payment history information with the retail
electric provider or electric utility during the preceding 12-month
period. Bill payment history information may be obtained by the
customer or former customer once during each 12-month period
without charge. If additional copies of bill payment history
information are requested during a 12-month period, the electric
service provider may charge the customer or former customer a
reasonable fee for each copy.
(g) On request by a retail electric provider, another retail
electric provider or electric utility shall timely verify
information that purports to show a customer's service and bill
payment history with the retail electric provider or electric
utility.
(h) This section does not limit a retail electric provider's
authority to require a deposit or advance payment as a condition of
service.
(i) Notwithstanding Subsection (e), a retail electric
provider may provide rewards, benefits, or credits to residential
electric service customers on the basis of the customer's payment
history for retail electric service to that provider.
Sec. 17.009. PROTECTION OF RESIDENTIAL TELEPHONE SERVICE
APPLICANTS AND CUSTOMERS. (a) A provider of basic local
telecommunications services and nonbasic network services may not
deny an applicant's request to become a residential customer on the
basis of the applicant's credit history or credit score.
(b) A provider of basic local telecommunications services
and nonbasic network services may not use a credit score or credit
history as the basis for determining price for service:
(1) for an existing residential customer; or
(2) in response to an applicant's request to become a
residential customer.
(c) This section does not limit the authority of a provider
of basic local telecommunications services and nonbasic network
services to require a deposit, advance payment, or credit limit as a
condition of service.
SECTION 2. (a) The Public Utility Commission of Texas shall
conduct one or more public workshops to consider the merits of both
voluntary and mandatory databases that are used to determine
whether a customer has a satisfactory electric bill payment
history. The commission shall report its conclusions to the
governor, the lieutenant governor, and the speaker of the house of
representatives not later than January 15, 2007.
(b) This Act does not prevent or prohibit the creation or
use of one or more databases to determine whether a customer has a
satisfactory electric bill payment history, provided that the
database, including the use of the database, is not discriminatory
and does not otherwise violate the Public Utility Regulatory Act
(Title 2, Utilities Code).