By Marchant                                           H.B. No. 1994
         77R6323 DWS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain charges included in a retail installment
 1-3     agreement.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Sections 345.251(b) and (c), Finance Code, are
 1-6     amended to read as follows:
 1-7           (b)  If a documentary fee is charged under this section the
 1-8     fee:
 1-9                 (1)  must be charged to cash buyers and credit buyers;
1-10                 (2)  may not exceed $75 [$50]; and
1-11                 (3)  must be disclosed on the retail installment
1-12     contract as a separate itemized charge.
1-13           (c)  A preliminary work sheet on which a sale price is
1-14     computed and that is shown to the retail buyer, an order from the
1-15     buyer, or a retail installment contract must include in reasonable
1-16     proximity to the place on the document where the documentary fee is
1-17     disclosed:
1-18                 (1)  the amount of the fee; and
1-19                 (2)  the following notice in type that is bold-faced,
1-20     capitalized, or underlined or otherwise conspicuously set out from
1-21     the surrounding written material:
1-22     "A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.  A DOCUMENTARY FEE IS
1-23     NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING
1-24     DOCUMENTS AND PERFORMING SERVICES RELATING TO THE CLOSING OF A
 2-1     SALE.  A DOCUMENTARY FEE MAY NOT EXCEED $75 [$50].  THIS NOTICE IS
 2-2     REQUIRED BY LAW."
 2-3           SECTION 2. Section 348.006(c), Finance Code, is amended to
 2-4     read as follows:
 2-5           (c)  For a documentary fee to be included in the principal
 2-6     balance of a retail installment contract:
 2-7                 (1)  the retail seller must charge the documentary fee
 2-8     to cash buyers and credit buyers;
 2-9                 (2)  the documentary fee may not exceed $75 [$50] for a
2-10     motor vehicle retail installment contract or a reasonable amount
2-11     agreed to by the retail seller and retail buyer for a heavy
2-12     commercial vehicle retail installment contract; and
2-13                 (3)  the buyer's order and the retail installment
2-14     contract must include:
2-15                       (A)  a statement of the amount of the documentary
2-16     fee; and
2-17                       (B)  in reasonable proximity to the place in each
2-18     where the amount of the documentary fee is disclosed, the following
2-19     notice in type that is bold-faced, capitalized, underlined, or
2-20     otherwise conspicuously set out from surrounding written material:
2-21     "A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.  A DOCUMENTARY FEE IS
2-22     NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING
2-23     DOCUMENTS AND PERFORMING SERVICES RELATING TO THE CLOSING OF A
2-24     SALE.  A DOCUMENTARY FEE MAY NOT EXCEED $75 [$50] FOR A MOTOR
2-25     VEHICLE CONTRACT OR A REASONABLE AMOUNT AGREED TO BY THE PARTIES
2-26     FOR A HEAVY COMMERCIAL VEHICLE CONTRACT.  THIS NOTICE IS REQUIRED
2-27     BY LAW."
 3-1           SECTION 3.  This Act takes effect immediately if it receives
 3-2     a vote of two-thirds of all the members elected to each house, as
 3-3     provided by Section 39, Article III, Texas Constitution.  If this
 3-4     Act does not receive the vote necessary for immediate effect, this
 3-5     Act takes effect September 1, 2001.