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A BILL TO BE ENTITLED
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AN ACT
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relating to requirements regarding motor vehicle retail |
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installment transactions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 348.001(3), Finance Code, is amended to |
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read as follows: |
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(3) "Holder" means a person who is: |
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(A) a retail seller; or |
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(B) the assignee or transferee of [if] a retail |
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installment contract [or the outstanding balance under the contract
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is sold or otherwise transferred, the person to whom it is sold or
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otherwise transferred]. |
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SECTION 2. Sections 348.104(b), (c), (d), and (h), Finance |
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Code, are amended to read as follows: |
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(b) The add-on charge is $7.50 per $100 per year on the |
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principal balance for[:
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[(1)] a new [domestic] motor vehicle, other than a |
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heavy commercial vehicle, designated by the manufacturer by a model |
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year that is not earlier than the year in which the sale is made[; or
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[(2)
a new foreign motor vehicle, other than a heavy
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commercial vehicle]. |
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(c) The add-on charge is $10 per $100 per year on the |
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principal balance for: |
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(1) a new [domestic] motor vehicle not covered by |
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Subsection (b); |
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(2) a used [domestic] motor vehicle designated by the |
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manufacturer by a model year that is not more than two years before |
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the year in which the sale is made; or |
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(3) [a used foreign motor vehicle that is not more than
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two years old; or
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[(4)] a new or used heavy commercial vehicle |
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designated by the manufacturer by a model year that is not more than |
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two years before the year in which the sale is made [old]. |
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(d) The add-on charge is $12.50 per $100 per year on the |
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principal balance for a used motor vehicle not covered by |
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Subsection (c) that is[:
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[(1)] a [domestic] motor vehicle designated by the |
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manufacturer by a model year that is not more than four years before |
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the year in which the sale is made[; or
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[(2)
a foreign motor vehicle that is not more than four
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years old]. |
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(h) For the purpose of a computation under this section, 16 |
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[15] or more days of a month may be considered a full month. |
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SECTION 3. Section 348.404, Finance Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) A retail seller may include money advanced under |
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Subsection (b) in the retail installment contract only if it is |
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included as an itemized charge. |
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SECTION 4. Section 348.408, Finance Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) A retail seller must pay in full the outstanding balance |
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of a vehicle traded in not later than the 20th working day after the |
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date that: |
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(1) the retail installment contract is signed by the |
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retail buyer and the retail buyer receives delivery of the motor |
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vehicle; and |
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(2) the retail seller receives delivery of the motor |
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vehicle traded in and the necessary and appropriate documents to |
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transfer title from the buyer. |
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SECTION 5. Section 348.501, Finance Code, is amended by |
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amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) A person who is required to hold a license under this |
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chapter must hold a separate license for each office at which retail |
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installment transactions are made, serviced, held, or collected |
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under this chapter. |
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(c) A person may not use any device, subterfuge, or pretense |
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to evade the application of this section. |
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SECTION 6. Section 348.514(c), Finance Code, is amended to |
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read as follows: |
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(c) During an examination or investigation the commissioner |
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or the commissioner's representative may administer oaths and |
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examine any person under oath on any subject pertinent to a matter |
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that the commissioner is authorized or required to consider, |
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investigate, or secure information about under this chapter. |
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SECTION 7. The heading to Section 348.517, Finance Code, is |
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amended to read as follows: |
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Sec. 348.517. LICENSE HOLDER'S RECORDS; DOCUMENT RETENTION |
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REQUIREMENTS. |
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SECTION 8. Section 348.517(b), Finance Code, is amended to |
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read as follows: |
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(b) A license holder shall keep the record until the later |
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of: |
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(1) the fourth [third] anniversary of the date of the |
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[last payment was made on the] retail installment transaction; or |
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(2) the second anniversary of the date on which the |
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final entry is made in the record. |
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SECTION 9. This Act takes effect September 1, 2009. |