BILL ANALYSIS



H.B. 1616
By: Carona
03-16-95
Committee Report (Amended)


BACKGROUND

Chapter 6 and 7 of the Texas Credit Code (Article 5069-6.01 et
seq., V.T.C.S.) govern the sale of consumer goods, services, and
motor vehicles on retail installment contracts.

PURPOSE

HB 1616 accomplishes several purposes:  (1) HB 1616 would amend the
definition of "goods"  to include certain trailers used for
personal, family, or household use.  This change would allow the
contract for purchase of certain goods, such as a motorcycle and
its trailer, to be written as one contract, rather than as two
contracts as is required under current law;  (2) HB 1616 would
extend the requirements for "boldfaced" type notices throughout the
Texas Credit Code as was intended by legislation in 1991, but not
accomplished due to technical defects in the bill;  (3)  HB 1616
would provide that medical or dental services could be financed on
a retail installment contract, but only at rates authorized by
Article 1.04 of the Texas Credit Code;  (4) HB 1616 would make the
documentary fee notice language identical in Chapters 6 and 7 so
that one credit contract can be used under both chapters; and (5)
HB 1616 would amend the definition of a retail installment
transaction to clarify that the statute governing motor vehicle
installment sales governs all such transactions whether or not the
seller acknowledges charging a finance charge.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subsections (a) and (b), Article 6.01, Title 79,
Revised Statutes (Article 5069-6.01, V.T.C.S.) to change the
definition of "goods" to include a "trailer designed or intended to
be pulled by, or to transport, a motor scooter, motor-assisted
bicycle, motorcycle or all-terrain vehicle, recreational vehicles
commonly known as travel trailers designed for temporary living
accommodations" and to delete medical services from the exceptions
to the definition of "services."

SECTION 2.  Amends Subsections (2) and (3), Article 6.02, Title 79,
Revised Statutes (Article 5069-6.02, V.T.C.S.), to delete the word
"bold" before "type", and add the following language after the word
"type":  "that is boldfaced, capitalized, underlined, or otherwise
set out from surrounding written material so as to be conspicuous".

SECTION 3.  Amends Subsection (1), Article 6.03, Title 79, Revised
Statutes (Article 5069-6.03, V.T.C.S.), to delete the word "bold"
before "type", and add the following language after the word
"type":  "that is boldfaced, capitalized, underlined, or otherwise
set out from surrounding written material so as to be conspicuous".

SECTION 4.  Amends Chapter 6, Title 79, Revised Statutes (Article
5069-6.01 et seq., V.T.C.S.), to require that medical or dental
services may be financed on a retail installment contract, but only
at rates authorized by Article 1.04 of this title.

SECTION 5.  Amends Subsection (1), Article 6.06, Title 79, Revised
Statutes (Article 5069-6.06, V.T.C.S.), to delete the word "bold"
before "type", and add the following language after the word
"type":  "that is boldfaced, capitalized, underlined, or otherwise
set out from surrounding written material so as to be conspicuous".

SECTION 6.  Amends Article 6.07, Title 79, Revised Statutes
(Article 5069-6.07, V.T.C.S.), to delete the word "bold" before
"type", and add the following language after the word "type": 
"that is boldfaced, capitalized, underlined, or otherwise set out
from surrounding written material so as to be conspicuous".

SECTION 7.  Amends Subsection (b), Article 6.10, Title 79, Revised
Statutes (Article 5069-6.10, V.T.C.S.), to conform the documentary
fee language in Chapters 6 and 7 and to delete the word "bold"
before "type", and add the following language after the word
"type":  "that is boldfaced, capitalized, underlined, or otherwise
set out from surrounding written material so as to be conspicuous." 


SECTION 8.  Amends Subsection (d), Article 7.01, Title 79, Revised
Statutes (Article 5069-7.01, V.T.C.S.), to clarify the definition
of retail installment transaction such that all transactions are
subject to the provisions of Chapter 7, whether or not the seller
acknowledges charging a finance charge.

SECTION 9.  Amends Subsections (2)-(4), Article 7.02, Title 79,
Revised Statutes (Article 5069-7.02, V.T.C.S.), to delete the word
"bold" before "type", and add the following language after the word
"type":  "that is boldfaced, capitalized, underlined, or otherwise
set out from surrounding written material so as to be conspicuous".

SECTION 10.  Provides that this Act applies only to acts done and
transactions entered into on or after the effective date of this
Act.

SECTION 11.  Effective date:  September 1, 1995

SECTION 12.  Emergency clause.

EXPLANATION OF AMENDMENTS

Committee Amendment #1 is a technical amendment to include language
which was inadvertently left out of the original draft.  It
clarifies that the bill does not exclude medical or dental
services.

SUMMARY OF COMMITTEE ACTION

The committee convened in a public hearing on March 20, 1995 to
consider HB 1616.  The Chair laid out HB 1616 and recognized Rep.
Carona to explain the bill.

The following person testified in favor of the bill:  Robert Duke.

The following person testified neutrally on the bill:    Lesli L.
Pettijohn.

The Chair offered committee amendment #1 which was adopted without
objection.  The motion to report HB 1616 favorably as amended, with
the recommendation that it do pass and be printed, prevailed by the
following record vote:  7 Ayes, 0 Nays, 0 PNV, 2 Absent.