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.
1-60 * * * * *