LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 27, 2009 TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2438 by McCall (Relating to requirements regarding motor vehicle retail installment transactions.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would amend the Finance Code relating to retail installment contracts. Certain exceptions for retail installment transactions would be granted for contracts involving commercial vehicles. The bill would require a retail seller to provide a buyer a complete disclosure of trade-in equity form before accepting a trade-in motor vehicle for a motor vehicle sold under a retail installment contract. The form would be prescribed by the Finance Commission. A retail seller would be able to include money advanced in a retail installment contract only if it is included as an itemized charge. The Office of Consumer Credit Commissioner (OCCC) would have jurisdiction over enforcement. Additionally, the Finance Commission would be able to adopt rules relating to the Federal Truth in Lending Act. The bill would amend Section 348.514 of the Finance Code by outlining information in an examination or investigation that would be confidential. Based on the analysis of the OCCC, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:466 Office of Consumer Credit Commissioner LBB Staff: JOB, JRO, MW, ACa
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 27, 2009
TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2438 by McCall (Relating to requirements regarding motor vehicle retail installment transactions.), Committee Report 1st House, Substituted
TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB2438 by McCall (Relating to requirements regarding motor vehicle retail installment transactions.), Committee Report 1st House, Substituted
Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB2438 by McCall (Relating to requirements regarding motor vehicle retail installment transactions.), Committee Report 1st House, Substituted
HB2438 by McCall (Relating to requirements regarding motor vehicle retail installment transactions.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend the Finance Code relating to retail installment contracts. Certain exceptions for retail installment transactions would be granted for contracts involving commercial vehicles. The bill would require a retail seller to provide a buyer a complete disclosure of trade-in equity form before accepting a trade-in motor vehicle for a motor vehicle sold under a retail installment contract. The form would be prescribed by the Finance Commission. A retail seller would be able to include money advanced in a retail installment contract only if it is included as an itemized charge. The Office of Consumer Credit Commissioner (OCCC) would have jurisdiction over enforcement. Additionally, the Finance Commission would be able to adopt rules relating to the Federal Truth in Lending Act. The bill would amend Section 348.514 of the Finance Code by outlining information in an examination or investigation that would be confidential. Based on the analysis of the OCCC, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
The bill would amend the Finance Code relating to retail installment contracts. Certain exceptions for retail installment transactions would be granted for contracts involving commercial vehicles.
The bill would require a retail seller to provide a buyer a complete disclosure of trade-in equity form before accepting a trade-in motor vehicle for a motor vehicle sold under a retail installment contract. The form would be prescribed by the Finance Commission. A retail seller would be able to include money advanced in a retail installment contract only if it is included as an itemized charge. The Office of Consumer Credit Commissioner (OCCC) would have jurisdiction over enforcement. Additionally, the Finance Commission would be able to adopt rules relating to the Federal Truth in Lending Act.
The bill would amend Section 348.514 of the Finance Code by outlining information in an examination or investigation that would be confidential.
Based on the analysis of the OCCC, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 466 Office of Consumer Credit Commissioner
466 Office of Consumer Credit Commissioner
LBB Staff: JOB, JRO, MW, ACa
JOB, JRO, MW, ACa