By: Solomons H.B. No. 3621
A BILL TO BE ENTITLED
AN ACT
relating to certain charges included in a motor vehicle installment
agreement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 348.006, Finance Code is amended to read
as follows:
Sec. 348.006. PRINCIPAL BALANCE; INCLUSION OF DOCUMENTARY
FEE. (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 sale [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.
(b) The computation of the principal balance may include an
amount authorized under Section 348.404(b).
(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 [$50 for a motor
vehicle retail installment contract or] a reasonable amount for the
documentary services 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 [$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."
(d) A retail seller shall post the documentary fee notice
prescribed in Subsection (c) so that it is clearly visible in each
place where a vehicle sale is finalized. If the language primarily
used in an oral sales presentation is not the same as the language
in which the retail installment contract is written, the retail
seller shall furnish to the retail buyer a written statement
containing the notice set out in Subsection (c)(3)(B) in the
language primarily used in the oral sales presentation.
(e) The commissioner may review the amount of a documentary
fee for reasonableness. If the commissioner determines that a
documentary fee charged is not reasonable, then the commissioner
may require that the documentary fee charged be reduced or
suspended.
(f) The Finance Commission may adopt rules, including rules
relating to the standards for a reasonableness determination or
disclosures, to enforce this section.
SECTION 2. This Act takes effect September 1, 2009.