79R2135 MTB-F

By:  Van de Putte                                                 S.B. No. 351



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.