| 1 | 1 | | By: Carona S.B. No. 1248 |
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| 2 | 2 | | (Flynn) |
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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 the documentary fee charged in connection with the sale |
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| 8 | 8 | | of certain recreational vehicles and boats. |
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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. Section 345.251, Finance Code, is amended by |
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| 11 | 11 | | amending Subsections (a), (b), and (c) and adding Subsection (e) to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | (a) A retail seller may charge a documentary fee for |
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| 14 | 14 | | services rendered to, for, or on behalf of a retail buyer in |
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| 15 | 15 | | [preparing,] handling[,] and processing documents relating to the |
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| 16 | 16 | | sale of[, and closing a retail installment transaction involving,] |
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| 17 | 17 | | a motorcycle, motor-driven cycle, moped, all-terrain vehicle, |
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| 18 | 18 | | boat, boat motor, boat trailer, or towable recreational vehicle. |
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| 19 | 19 | | (b) If a documentary fee is charged under this section the |
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| 20 | 20 | | fee: |
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| 21 | 21 | | (1) must be charged to cash buyers and credit buyers; |
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| 22 | 22 | | (2) may not exceed a reasonable amount agreed to by the |
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| 23 | 23 | | retail seller and retail buyer for the documentary services, |
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| 24 | 24 | | subject to a reasonable maximum amount set by rule by the finance |
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| 25 | 25 | | commission [$50]; and |
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| 26 | 26 | | (3) must be disclosed on the buyer's order or retail |
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| 27 | 27 | | installment contract as a separate itemized charge. |
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| 28 | 28 | | (c) A preliminary work sheet on which a sale price is |
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| 29 | 29 | | computed and that is shown to the retail buyer, an order from the |
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| 30 | 30 | | buyer, or a retail installment contract must include in reasonable |
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| 31 | 31 | | proximity to the place on the document where the documentary fee is |
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| 32 | 32 | | disclosed: |
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| 33 | 33 | | (1) the amount of the fee; and |
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| 34 | 34 | | (2) the following notice in type that is bold-faced, |
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| 35 | 35 | | capitalized, or underlined or otherwise conspicuously set out from |
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| 36 | 36 | | the surrounding written material: |
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| 37 | 37 | | "A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A |
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| 38 | 38 | | DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE |
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| 39 | 39 | | CHARGED TO BUYERS FOR HANDLING DOCUMENTS [AND |
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| 40 | 40 | | PERFORMING SERVICES] RELATING TO THE [CLOSING OF A] |
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| 41 | 41 | | SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE |
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| 42 | 42 | | AMOUNT AGREED TO BY THE PARTIES THAT IS NOT MORE THAN |
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| 43 | 43 | | THE MAXIMUM AMOUNT ALLOWED BY THE STATE [$50]. THIS |
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| 44 | 44 | | NOTICE IS REQUIRED BY LAW." |
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| 45 | 45 | | (e) The finance commission may adopt rules necessary to |
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| 46 | 46 | | implement and enforce this section. |
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| 47 | 47 | | SECTION 2. This Act takes effect September 1, 2013. |
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