Texas 2009 - 81st Regular

Texas Senate Bill SB1096 Compare Versions

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1	1	By: Carona S.B. No. 1096
2	2	(In the Senate - Filed February 24, 2009; March 13, 2009, read
3	3	first time and referred to Committee on Business and Commerce;
4	4	April 8, 2009, reported favorably by the following vote: Yeas 8,
5	5	Nays 0; April 8, 2009, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to certain charges included in a retail installment
11	11	agreement.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subsections (b) and (c), Section 345.251,
14	14	Finance Code, are amended to read as follows:
15	15	(b) If a documentary fee is charged under this section the
16	16	fee:
17	17	(1) must be charged to cash buyers and credit buyers;
18	18	(2) may not exceed $100 [$50]; and
19	19	(3) must be disclosed on the retail installment
20	20	contract as a separate itemized charge.
21	21	(c) A preliminary work sheet on which a sale price is
22	22	computed and that is shown to the retail buyer, an order from the
23	23	buyer, or a retail installment contract must include in reasonable
24	24	proximity to the place on the document where the documentary fee is
25	25	disclosed:
26	26	(1) the amount of the fee; and
27	27	(2) the following notice in type that is bold-faced,
28	28	capitalized, or underlined or otherwise conspicuously set out from
29	29	the surrounding written material:
30	30	"A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT
31	31	REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS
32	32	AND PERFORMING SERVICES RELATING TO THE CLOSING OF A SALE. A
33	33	DOCUMENTARY FEE MAY NOT EXCEED $100 [$50]. THIS NOTICE IS REQUIRED
34	34	BY LAW."
35	35	SECTION 2. Subsection (c), Section 348.006, Finance Code,
36	36	is amended to read as follows:
37	37	(c) For a documentary fee to be included in the principal
38	38	balance of a retail installment contract:
39	39	(1) the retail seller must charge the documentary fee
40	40	to cash buyers and credit buyers;
41	41	(2) the documentary fee may not exceed $100 [$50] for a
42	42	motor vehicle retail installment contract or a reasonable amount
43	43	agreed to by the retail seller and retail buyer for a heavy
44	44	commercial vehicle retail installment contract; and
45	45	(3) the buyer's order and the retail installment
46	46	contract must include:
47	47	(A) a statement of the amount of the documentary
48	48	fee; and
49	49	(B) in reasonable proximity to the place in each
50	50	where the amount of the documentary fee is disclosed, the following
51	51	notice in type that is bold-faced, capitalized, underlined, or
52	52	otherwise conspicuously set out from surrounding written material:
53	53	"A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT
54	54	REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS
55	55	AND PERFORMING SERVICES RELATING TO THE CLOSING OF A SALE. A
56	56	DOCUMENTARY FEE MAY NOT EXCEED $100 [$50] FOR A MOTOR VEHICLE
57	57	CONTRACT OR A REASONABLE AMOUNT AGREED TO BY THE PARTIES FOR A HEAVY
58	58	COMMERCIAL VEHICLE CONTRACT. THIS NOTICE IS REQUIRED BY LAW."
59	59	SECTION 3. This Act takes effect immediately if it receives
60	60	a vote of two-thirds of all the members elected to each house, as
61	61	provided by Section 39, Article III, Texas Constitution. If this
62	62	Act does not receive the vote necessary for immediate effect, this
63	63	Act takes effect September 1, 2009.
64	64	* * * * *