Texas 2025 - 89th Regular

Texas House Bill HB4134

Filed

3/10/25

Out of House Committee

4/11/25

Voted on by House

4/29/25

Out of Senate Committee

5/26/25

Voted on by Senate

5/27/25

Governor Action

6/20/25

Bill Becomes Law

Caption

Relating to a convenience fee for processing electronic payments for motor vehicles.

Impact

The introduction of HB 4134 will modify the existing framework under Texas Finance Code concerning financial transactions. It seeks to ensure transparency and fairness in fees associated with electronic payments, addressing potential consumer protection issues. By delineating clear guidelines for acceptable fees, this legislation aims to foster a more equitable environment in financial transactions related to motor vehicles, potentially enhancing consumer trust in electronic payment methods.

Summary

House Bill 4134 seeks to regulate the convenience fees associated with processing electronic payments for motor vehicles. Specifically, it allows holders of retail installment contracts to collect a fee for electronic payments, but imposes restrictions to ensure that these fees are reasonable and clearly communicated to buyers. The legislation mandates that any fee collected does not exceed $10 or 5% of the payment amount and requires that alternative payment options be provided without incurring a fee. This represents a shift in how fees on electronic transactions for vehicle payments are handled, aiming to protect consumers from excessive charges.

Sentiment

Overall sentiment regarding HB 4134 appears to be supportive, particularly from consumer advocacy groups who see it as a protective measure against excessive fees in the electronic payment process. However, there may be concerns from auto dealers and financial institutions regarding the restrictions imposed on fee levels, as these entities might argue that it could limit their ability to cover processing costs effectively. The discussions indicate a balance between consumer protection and the operational realities of financial transactions.

Contention

Notable points of contention during the discussions surrounding HB 4134 included the concern that imposing a cap on fees could disincentivize the adoption of electronic payment systems. Some stakeholders expressed that while the intention of consumer protection is commendable, there could be unintended consequences that affect the efficiency and acceptance of such digital payment solutions in the automotive sector. The bill's effective date, set for September 1, 2025, also indicates that there will be a transitional phase for stakeholders to adapt to the new regulations.

Texas Constitutional Statutes Affected

Finance Code

Chapter 348. Motor Vehicle Installment Sales
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Companion Bills

TX SB1736

Same As Relating to a convenience fee for processing electronic payments for motor vehicles.

Previously Filed As

TX HB3599

Relating to an exemption from certain motor fuel taxes for, and registration fees for motor vehicles owned by, certain nonprofit food banks.

TX SB1486

Relating to the electronic payment of ad valorem taxes; authorizing a fee.

TX SB893

Relating to the correction of a certificate of public convenience and necessity for providing water or sewer service.

TX HB1319

Relating to the electronic payments required or permitted under the Property Tax Code; authorizing a fee.

TX HB1608

Relating to the electronic payment of ad valorem taxes; authorizing a fee.

TX HB4871

Relating to the electronic submission of dealer's motor vehicle inventory tax statements and escrow payments.

TX HB2837

Relating to prohibiting a person or entity from surveilling, reporting, or tracking the purchase of firearms, ammunition, and accessories through the use of certain merchant category codes; imposing a civil penalty.

TX SB2252

Relating to the electronic submission of dealer's motor vehicle inventory tax statements and escrow payments.

TX HB2442

Relating to certificates of public convenience and necessity issued to certain retail public utilities.

TX HB718

Relating to the issuance of certain tags, permits, and license plates authorizing the movement of vehicles and the transfer and renewal of certain license plates.