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