BILL ANALYSIS
By: Guillen
Introduced
BACKGROUND AND PURPOSE
Over twenty years ago, the Texas Legislature adopted a statute relating to rental-purchase agreements and its requirements. Since then, the rental-purchase industry has evolved from low end appliances to high end appliances, furniture and state-of-the-art electronics. However, the current law does not account for the increase in the value of rental purchase items.
C.S.H.B. 1726 addresses the current status of the rental-purchase industry by increasing the maximum amount that can be charged for the payment of a late charge or reinstatement fee.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
C.S.H.B. 1726 amends Section 35.72(c), Business & Commerce Code, as follows;
This bill increases the late charge or reinstatement fee of a rental-purchase agreement to 10% of the delinquent payment or $10, and not less than $5.
EFFECTIVE DATE
September 1, 2005
COMPARISON OF ORIGINAL TO SUBSTITUTE
C.S.H.B. modifies the original by decreasing the dollar amount of the late charge from $11, not less that $6, to $10, not less than $5.