82R3097 ATP-D
By: Johnson H.B. No. 430
A BILL TO BE ENTITLED
AN ACT
relating to the provision of payment history information to
consumer reporting agencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 20, Business & Commerce Code, is amended
by adding Section 20.055 to read as follows:
Sec. 20.055. CONSUMER PAYMENT HISTORY INFORMATION. A
consumer reporting agency to which a consumer's payment history
information is provided under Chapter 606 of this code, Section
559.0535, Insurance Code, or Section 17.010, Utilities Code:
(1) shall include the information in the consumer's
consumer file and report;
(2) shall use the information in computing any credit
score developed by the consumer reporting agency; and
(3) may not use the consumer's decision not to require
a business to report payment history information under Chapter 606
of this code, Section 559.0535, Insurance Code, or Section 17.010,
Utilities Code, in evaluating the consumer.
SECTION 2. Title 12, Business & Commerce Code, is amended by
adding Chapter 606 to read as follows:
CHAPTER 606. REPORTING OF CONSUMER PAYMENT HISTORY INFORMATION
Sec. 606.001. DEFINITIONS. In this chapter:
(1) "Business" means a person who provides services to
a consumer in exchange for money or another thing of value.
(2) "Consumer," "consumer report," and "consumer
reporting agency" have the meanings assigned by Section 20.01.
(3) "Payment history information" means information
regarding whether a consumer has paid for services provided by the
business in a timely manner or as agreed to by the business and
consumer.
Sec. 606.002. ELECTION BY CONSUMER TO REQUIRE REPORTING OF
PAYMENT HISTORY INFORMATION. (a) If a business uses a consumer's
consumer report before providing services to the consumer, the
business shall permit the consumer to elect annually to require the
business to provide to consumer reporting agencies the consumer's
payment history information.
(b) If a consumer elects under Subsection (a) to require a
business to provide payment history information, the business shall
quarterly or more frequently provide the consumer's payment history
information to at least three consumer reporting agencies that
compile and maintain files on consumers on a nationwide basis.
Sec. 606.003. DURATION. An election under Section 606.002
remains in effect until the earlier of:
(1) the first anniversary of the date on which the
consumer notifies the business of the election; or
(2) the date on which the business ceases to provide
services to the consumer.
Sec. 606.004. FEE. A business may charge a consumer a
reasonable fee to offset the expenses incurred in providing payment
history information to consumer reporting agencies if the consumer
elects under Section 606.002 to require the business to provide the
information.
SECTION 3. Subchapter B, Chapter 559, Insurance Code, is
amended by adding Section 559.0535 to read as follows:
Sec. 559.0535. CONSUMER ELECTION TO REQUIRE REPORTING OF
PAYMENT HISTORY INFORMATION. (a) In this section, "payment
history information" means information regarding whether an
insured made required payments to the insurer in a timely manner or
as agreed to by the insurer and insured.
(b) If an insurer uses a credit score or credit information
in the underwriting or rating of a policy issued to an insured, the
insurer shall permit the insured to elect annually to require the
insurer to provide to consumer reporting agencies the insured's
payment history information.
(c) If an insured has elected under Subsection (b) to
require an insurer to provide payment history information, the
insurer shall quarterly or more frequently provide the insured's
payment history information to at least three consumer reporting
agencies that compile and maintain files on consumers on a
nationwide basis.
(d) An election under Subsection (b) remains in effect until
the earlier of:
(1) the first anniversary of the date on which the
insured notified the insurer of the election; or
(2) the date on which the insurer ceases to provide
insurance coverage to the insured.
(e) An insurer may charge an insured a reasonable fee to
offset the expenses incurred in providing payment history
information to consumer reporting agencies if the insured has
elected under Subsection (b) to require the insurer to provide the
information.
SECTION 4. Subchapter A, Chapter 17, Utilities Code, is
amended by adding Section 17.010 to read as follows:
Sec. 17.010. CONSUMER PAYMENT HISTORY INFORMATION. (a) In
this section:
(1) "Consumer" and "consumer reporting agency" have
the meanings assigned by Section 20.01, Business & Commerce Code.
(2) "Utility payment data" has the meaning assigned by
Section 17.008.
(b) A service provider that obtains utility payment data
relating to a customer who is a consumer before providing a product
or service to the consumer shall permit the consumer to elect
annually to require the service provider to provide to consumer
reporting agencies the consumer's utility payment history
information.
(c) If a consumer elects under Subsection (b) to require a
service provider to provide utility payment history information,
the provider shall quarterly or more frequently provide the
consumer's utility payment history information to at least three
consumer reporting agencies that provide that information to
service providers.
(d) An election under Subsection (b) remains in effect until
the earlier of:
(1) the first anniversary of the date on which the
consumer notifies the service provider of the election; or
(2) the date on which the service provider ceases to
provide the product or service to the consumer.
(e) A service provider may charge a consumer a reasonable
fee to offset the expenses incurred in providing utility payment
history information to consumer reporting agencies if the consumer
elects under Subsection (b) to require the service provider to
provide the information.
SECTION 5. This Act takes effect September 1, 2011.