By Averitt                                            H.B. No. 3072
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain payments by a retail seller in a retail
 1-3     installment transaction involving a motor vehicle.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 348.404, Finance Code, is amended to read
 1-6     as follows:
 1-7           Sec. 348.404.  SELLER'S ACTION FOR INCENTIVE PROGRAM OR TO
 1-8     PAY FOR BUYER'S MOTOR VEHICLE [TRADE-IN].  (a)  A retail seller may
 1-9     pay, promise to pay, or tender cash or another thing of value to
1-10     the  manufacturer, distributor, or retail buyer of the product if
1-11     the payment, promise, or tender is made in order to participate in
1-12     a financial incentive program offered by the manufacturer or
1-13     distributor of the vehicle to the buyer.
1-14           (b)  A retail seller, in connection with a retail installment
1-15     transaction, may:
1-16                 (1)  advance money to retire an amount owed against a
1-17     motor vehicle used as a trade-in or a motor vehicle owned by the
1-18     buyer that has been declared a total loss by the buyer's insurer;
1-19     and
1-20                 (2)  finance repayment of that money in a retail
1-21     installment contract.
1-22           (c)  A retail seller may pay in cash to the retail buyer any
1-23     portion of the net cash value of a motor vehicle owned by the buyer
1-24     and used as a  trade-in in a transaction involving the sale of
 2-1     another motor vehicle.  In this subsection, "net cash value" means
 2-2     the cash value of a motor vehicle after payment of all amounts
 2-3     secured by the motor vehicle.
 2-4           SECTION 2.  Section 152.002(b), Tax Code, is amended to read
 2-5     as follows:
 2-6           (b)  "Total consideration" does not include:
 2-7                 (1)  a cash discount;
 2-8                 (2)  a full cash or credit refund to a customer of the
 2-9     sales price of a motor vehicle returned to the seller;
2-10                 (3)  the amount charged for labor or service rendered
2-11     in installing, applying, remodeling, or repairing the motor vehicle
2-12     sold;
2-13                 (4)  a financing, carrying, or service charge or
2-14     interest on credit extended on a motor vehicle sold under a
2-15     conditional sale or other deferred payment contract;
2-16                 (5)  the value of a motor vehicle taken by a seller as
2-17     all or a part of the consideration for sale of another motor
2-18     vehicle, including any cash payment to the buyer under Section
2-19     348.404, Finance Code;
2-20                 (6)  a charge for transportation of the motor vehicle
2-21     after a sale; or
2-22                 (7)  motor vehicle inventory tax.
2-23           SECTION 3.  The importance of this legislation and the
2-24     crowded condition of the calendars in both houses create an
2-25     emergency and an imperative public necessity that the
2-26     constitutional rule requiring bills to be read on three several
2-27     days in each house be suspended, and this rule is hereby suspended,
 3-1     and that this Act take effect and be in force from and after its
 3-2     passage, and it is so enacted.