| 1 | 1 | | 81R10821 KFF-F |
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| 2 | 2 | | By: Flynn H.B. No. 3194 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to certain fees charged in conjunction with a motor |
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| 8 | 8 | | vehicle retail installment transaction. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 348.006(a) and (c), Finance Code, are |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (a) The principal balance under a retail installment |
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| 13 | 13 | | contract is computed by: |
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| 14 | 14 | | (1) adding: |
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| 15 | 15 | | (A) the cash price of the motor vehicle; |
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| 16 | 16 | | (B) each amount included in the retail |
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| 17 | 17 | | installment contract for an itemized charge; and |
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| 18 | 18 | | (C) subject to Subsection (c), a documentary fee |
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| 19 | 19 | | for services rendered for or on behalf of the retail buyer in |
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| 20 | 20 | | [preparing,] handling[,] and processing documents relating to the |
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| 21 | 21 | | motor vehicle [and to the closing of the retail installment |
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| 22 | 22 | | transaction]; and |
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| 23 | 23 | | (2) subtracting from the results under Subdivision (1) |
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| 24 | 24 | | the amount of the retail buyer's down payment in money, goods, or |
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| 25 | 25 | | both. |
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| 26 | 26 | | (c) For a documentary fee to be included in the principal |
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| 27 | 27 | | balance of a retail installment contract: |
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| 28 | 28 | | (1) the retail seller must charge the documentary fee |
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| 29 | 29 | | to cash buyers and credit buyers; |
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| 30 | 30 | | (2) the documentary fee may not exceed $100 [$50] for a |
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| 31 | 31 | | motor vehicle retail installment contract or a reasonable amount |
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| 32 | 32 | | agreed to by the retail seller and retail buyer for a heavy |
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| 33 | 33 | | commercial vehicle retail installment contract; and |
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| 34 | 34 | | (3) the buyer's order and the retail installment |
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| 35 | 35 | | contract must include: |
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| 36 | 36 | | (A) a statement of the amount of the documentary |
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| 37 | 37 | | fee; and |
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| 38 | 38 | | (B) in reasonable proximity to the place in each |
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| 39 | 39 | | where the amount of the documentary fee is disclosed, the following |
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| 40 | 40 | | notice in type that is bold-faced, capitalized, underlined, or |
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| 41 | 41 | | otherwise conspicuously set out from surrounding written material: |
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| 42 | 42 | | "A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE |
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| 43 | 43 | | IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING |
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| 44 | 44 | | DOCUMENTS [AND PERFORMING SERVICES] RELATING TO [THE CLOSING OF] A |
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| 45 | 45 | | SALE. A DOCUMENTARY FEE MAY NOT EXCEED $100 [$50] FOR A MOTOR |
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| 46 | 46 | | VEHICLE CONTRACT OR A REASONABLE AMOUNT AGREED TO BY THE PARTIES FOR |
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| 47 | 47 | | A HEAVY COMMERCIAL VEHICLE CONTRACT. THIS NOTICE IS REQUIRED BY |
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| 48 | 48 | | LAW." |
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| 49 | 49 | | SECTION 2. This Act takes effect immediately if it receives |
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| 50 | 50 | | a vote of two-thirds of all the members elected to each house, as |
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| 51 | 51 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 52 | 52 | | Act does not receive the vote necessary for immediate effect, this |
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| 53 | 53 | | Act takes effect September 1, 2009. |
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