79R2135 MTB-F
By: Turner 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. Section 17.004, Utilities Code, is amended by
adding Subsections (h) and (i) to read as follows:
(h) All buyers of basic local telecommunications services
and retail electric services are entitled to protection from
discrimination on the basis of credit history or credit score. For
the purposes of this subsection, the use of a credit history or
credit score:
(1) is not considered discrimination when used in
determining the applicability of a security deposit requirement;
and
(2) is considered discrimination when used:
(A) in denying or pricing service to a buyer or
potential buyer; or
(B) in limiting a buyer's ability to switch
service providers.
(i) In this section:
(1) "Credit history" means information regarding an
individual's past history of:
(A) financial responsibility;
(B) payment habits; or
(C) creditworthiness.
(2) "Credit score" means a score, grade, or value that
is derived by 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.
SECTION 2. This Act takes effect September 1, 2005.