BILL ANALYSIS



S.B. 872
By: Madla (Carona)
April 25, 1995
Committee Report (Unamended)


BACKGROUND

Chapters 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

As proposed, S.B. 872 redefines "goods" and "services" and amends
the font requirements of notices on retail installment contracts. 
The bill authorizes medical and dental services to be financed on
retail installment contracts.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Articles 5069-6.01(a) and (b), V.T.C.S., to
redefine "goods" to include a trailer designed or intended to be
pulled by, or to transport, a motor scooter, motor bicycle,
motorcycle, or all-terrain vehicle, and recreational vehicles
designed for temporary living accommodations.  Redefines "services"
to not include the services, other than medical or dental services,
or prepaid funeral benefits regulated by Article 548b, V.T.C.S., of
a professional person licensed by the state except when those
services are rendered in connection with the purchase of goods; or
any services which are authorized to be and are included in a
contract subject to Chapter 7 of this subtitle; or any legal
services instead of medical services.

SECTION 2. Amends Articles 5069-6.02(2) and (3), V.T.C.S., to
require that the contract contain a printed or typed notice in at
least ten-point type that is boldfaced, capitalized, underlined, or
otherwise set out from the surrounding written material so as to be
conspicuous.  Makes a conforming change.

SECTION 3. Amends Article 5069-6.03(1), V.T.C.S., to make
conforming changes.

SECTION 4. Amends Article 5069-6.01, V.T.C.S., by adding Article
6.13, as follows: 

     Art.  6.13.  RATES FOR MEDICAL AND DENTAL SERVICES. 
     Authorizes medical and dental services to be financed only at
     rates authorized by Article 1.04 of this title.
     
SECTION 5. Amends Article 5069-6.06(1), V.T.C.S., to make a
conforming change.

SECTION 6. Amends Article 5069-6.07, V.T.C.S., to make a conforming
change.

SECTION 7. Amends Article 5069-6.10(b), V.T.C.S., to make
conforming and nonsubstantive changes.

SECTION 8. Amends Article 5069-7.01(d), V.T.C.S., to redefine
"retail installment transaction" or "transaction" to mean any
transaction as a result of which a retail buyer acquires a motor
vehicle from a retail seller and agrees with a retail seller to pay
part or all of the cash price in one or more deferred installments;
includes that all such transactions shall be under a retail
installment contract and subject to the provisions of this chapter.

SECTION 9. Amends Articles 5069-7.02(2)-(4), V.T.C.S., to make
conforming changes.

SECTION 10.    States that this Act effects transactions done on or
after the effective date of this        Act.

SECTION 11.    Effective date: September 1, 1995.

SECTION 12.    Emergency clause.

SUMMARY OF COMMITTEE ACTION

The committee considered SB 872 in a public hearing on April 24,
1995.

The bill was reported favorably without amendments, with the
recommendation that it do pass and be printed, by a record vote of: 
6 Ayes, 0 Nays, 0 PNV, 3 Absent.