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A BILL TO BE ENTITLED
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AN ACT
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relating to certain charges included in a motor vehicle installment |
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agreement. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 348.006, Finance Code, is amended to |
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read as follows: |
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Sec. 348.006. PRINCIPAL BALANCE; INCLUSION OF DOCUMENTARY |
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FEE. (a) The principal balance under a retail installment contract |
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is computed by: |
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(1) adding: |
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(A) the cash price of the motor vehicle; |
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(B) each amount included in the retail |
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installment contract for an itemized charge; and |
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(C) subject to Subsection (c), a documentary fee |
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for services rendered for or on behalf of the retail buyer in |
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[preparing,] handling[,] and processing documents relating to the |
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motor vehicle sale [and to the closing of the retail installment
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transaction]; and |
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(2) subtracting from the results under Subdivision (1) |
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the amount of the retail buyer's down payment in money, goods, or |
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both. |
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(b) The computation of the principal balance may include an |
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amount authorized under Section 348.404(b). |
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(c) For a documentary fee to be included in the principal |
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balance of a retail installment contract: |
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(1) the retail seller must charge the documentary fee |
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to cash buyers and credit buyers; |
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(2) the documentary fee may not exceed: |
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(A) $100 [$50] for a motor vehicle retail |
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installment contract other than a contract for a commercial |
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vehicle, [or] a reasonable amount agreed to by the retail seller and |
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retail buyer for the documentary services; or |
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(B) for a [heavy] commercial vehicle retail |
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installment contract, an amount agreed to in writing by the retail |
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seller and retail buyer; and |
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(3) except for a buyer's order or retail installment |
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contract for a commercial vehicle, the buyer's order and the retail |
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installment contract must include: |
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(A) a statement of the amount of the documentary |
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fee; and |
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(B) in reasonable proximity to the place in each |
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where the amount of the documentary fee is disclosed, the following |
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notice in type that is bold-faced, capitalized, underlined, or |
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otherwise conspicuously set out from surrounding written material: |
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"A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE |
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IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING |
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DOCUMENTS [AND PERFORMING SERVICES] RELATING TO THE [CLOSING OF A] |
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SALE. A DOCUMENTARY FEE MAY NOT EXCEED [$50 FOR A MOTOR VEHICLE
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CONTRACT OR] A REASONABLE AMOUNT AGREED TO BY THE PARTIES [FOR A
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HEAVY COMMERCIAL VEHICLE CONTRACT]. THIS NOTICE IS REQUIRED BY |
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LAW." |
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(d) A retail seller shall post the documentary fee notice |
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prescribed in Subsection (c) so that it is clearly visible in each |
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place where a vehicle sale is finalized. If the language primarily |
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used in an oral sales presentation is not the same as the language |
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in which the retail installment contract is written, the retail |
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seller shall furnish to the retail buyer a written statement |
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containing the notice set out in Subsection (c)(3)(B) in the |
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language primarily used in the oral sales presentation. |
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(e) The commissioner may review the amount of a documentary |
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fee for reasonableness. In determining whether a fee charged by a |
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retail seller is reasonable, the commissioner may consider the |
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resources required by the retail seller to perform the retail |
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seller's duties under state and federal law with respect to the |
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handling and processing of documents relating to the sale and |
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financing of a motor vehicle. If the commissioner determines that a |
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documentary fee charged is not reasonable, the commissioner may |
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require that the documentary fee charged be reduced or suspended. |
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(f) A documentary fee charged in accordance with this |
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section before September 1, 2009, is considered reasonable for |
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purposes of this section. |
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(g) This section does not: |
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(1) create a private right of action; or |
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(2) require that the commissioner approve a specific |
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documentary fee amount before a retail seller charges the fee. |
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(h) The finance commission may adopt rules, including rules |
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relating to the standards for a reasonableness determination or |
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disclosures, necessary to enforce this section. A rule adopted |
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under this subsection may not require a retail seller to submit to |
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the commissioner for prior approval the amount of a documentary fee |
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that the retail seller intends to charge under this section. |
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(i) The commissioner has exclusive jurisdiction to enforce |
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this section. |
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(j) Subsections (d), (e), and (h) do not apply with respect |
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to a retail installment transaction for the purchase of a |
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commercial vehicle. |
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SECTION 2. To the extent of conflict and regardless of the |
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relative dates of enactment, this Act prevails over any other bill, |
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including House Bill 4361 and Senate Bill 1965, enacted by the 81st |
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Legislature, Regular Session, 2009. |
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SECTION 3. This Act takes effect September 1, 2009. |
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* * * * * |