1-1     By:  Averitt (Senate Sponsor - Brown)                 H.B. No. 3072
 1-2           (In the Senate - Received from the House May 7, 1999;
 1-3     May 10, 1999, read first time and referred to Committee on State
 1-4     Affairs; May 14, 1999, reported favorably by the following vote:
 1-5     Yeas 8, Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to certain payments by a retail seller in a retail
 1-9     installment transaction involving a motor vehicle.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 348.404, Finance Code, is amended to read
1-12     as follows:
1-13           Sec. 348.404.  SELLER'S ACTION FOR INCENTIVE PROGRAM OR TO
1-14     PAY FOR BUYER'S MOTOR VEHICLE [TRADE-IN].  (a)  A retail seller may
1-15     pay, promise to pay, or tender cash or another thing of value to
1-16     the  manufacturer, distributor, or retail buyer of the product if
1-17     the payment, promise, or tender is made in order to participate in
1-18     a financial incentive program offered by the manufacturer or
1-19     distributor of the vehicle to the buyer.
1-20           (b)  A retail seller, in connection with a retail installment
1-21     transaction, may:
1-22                 (1)  advance money to retire an amount owed against a
1-23     motor vehicle used as a trade-in or a motor vehicle owned by the
1-24     buyer that has been declared a total loss by the buyer's insurer;
1-25     and
1-26                 (2)  finance repayment of that money in a retail
1-27     installment contract.
1-28           (c)  A retail seller may pay in cash to the retail buyer any
1-29     portion of the net cash value of a motor vehicle owned by the buyer
1-30     and used as a  trade-in in a transaction involving the sale of
1-31     another motor vehicle.  In this subsection, "net cash value" means
1-32     the cash value of a motor vehicle after payment of all amounts
1-33     secured by the motor vehicle.
1-34           SECTION 2.  Section 152.002(b), Tax Code, is amended to read
1-35     as follows:
1-36           (b)  "Total consideration" does not include:
1-37                 (1)  a cash discount;
1-38                 (2)  a full cash or credit refund to a customer of the
1-39     sales price of a motor vehicle returned to the seller;
1-40                 (3)  the amount charged for labor or service rendered
1-41     in installing, applying, remodeling, or repairing the motor vehicle
1-42     sold;
1-43                 (4)  a financing, carrying, or service charge or
1-44     interest on credit extended on a motor vehicle sold under a
1-45     conditional sale or other deferred payment contract;
1-46                 (5)  the value of a motor vehicle taken by a seller as
1-47     all or a part of the consideration for sale of another motor
1-48     vehicle, including any cash payment to the buyer under Section
1-49     348.404, Finance Code;
1-50                 (6)  a charge for transportation of the motor vehicle
1-51     after a sale; or
1-52                 (7)  motor vehicle inventory tax.
1-53           SECTION 3.  The importance of this legislation and the
1-54     crowded condition of the calendars in both houses create an
1-55     emergency and an imperative public necessity that the
1-56     constitutional rule requiring bills to be read on three several
1-57     days in each house be suspended, and this rule is hereby suspended,
1-58     and that this Act take effect and be in force from and after its
1-59     passage, and it is so enacted.
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