79R12633 MTB-F


By:  Turner, et al.                                               H.B. No. 412

Substitute the following for H.B. No. 412:                                    

By:  Cook of Colorado                                         C.S.H.B. No. 412



A BILL TO BE ENTITLED

AN ACT

relating to the use of credit scoring and credit history by certain 
telecommunications and electric service providers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	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2007, or the date on which the price to beat is no longer in effect 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 local exchange 
telephone service 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 local exchange telephone service 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 local exchange telephone service to require a deposit, advance 
payment, or credit limit as a condition of service.
	SECTION 2.  This Act takes effect September 1, 2005.