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A BILL TO BE ENTITLED
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AN ACT
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relating to the documentary fee charged in retail installment |
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transactions for the sale of certain vehicles. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 345.251, Finance Code, is amended by |
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amending Subsections (a), (b), and (c) and adding Subsections (e), |
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(f), (g), (h), (i), and (j) to read as follows: |
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(a) A retail seller may charge a documentary fee for |
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services rendered to, for, or on behalf of a retail buyer in |
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[preparing,] handling[,] and processing documents relating to the |
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sale under[, and closing] a retail installment transaction of |
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[involving,] a motorcycle, motor-driven cycle, moped, all-terrain |
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vehicle, boat, boat motor, boat trailer, or towable recreational |
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vehicle. |
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(b) If a documentary fee is charged under this section the |
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fee: |
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(1) must be charged to cash buyers and credit buyers; |
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(2) may not exceed a reasonable amount [$50]; and |
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(3) must be disclosed on the retail installment |
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contract as a separate itemized charge. |
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(c) A preliminary work sheet on which a sale price is |
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computed and that is shown to the retail buyer, an order from the |
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buyer, or a retail installment contract must include in reasonable |
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proximity to the place on the document where the documentary fee is |
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disclosed: |
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(1) the amount of the fee; and |
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(2) the following notice in type that is boldfaced |
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[bold-faced], capitalized, or underlined or otherwise |
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conspicuously set out from the surrounding written material: |
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"A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A |
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DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE |
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CHARGED TO BUYERS FOR HANDLING DOCUMENTS AND |
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PERFORMING SERVICES RELATING TO THE CLOSING OF A SALE. |
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A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT |
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[$50]. THIS NOTICE IS REQUIRED BY LAW." |
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(e) A retail seller shall post the notice prescribed in |
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Subsection (c) in a prominent place at the location where a vehicle |
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sale is finalized. |
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(f) Prior to increasing the maximum amount of the |
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documentary fee the retail seller charges, a retail seller shall |
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provide written notice to the commissioner of the maximum amount of |
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the documentary fee the retail seller intends to charge. The |
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commissioner may review the amount of a documentary fee for |
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reasonableness. In determining whether a fee charged by a retail |
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seller is reasonable, the commissioner may consider the resources |
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required by the retail seller to perform the retail seller's duties |
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under state and federal law with respect to the handling and |
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processing of documents relating to the sale and financing of a |
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vehicle described under Subsection (a). If the commissioner |
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determines that a documentary fee charged is not reasonable, the |
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commissioner may require that the documentary fee charged be |
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reduced or suspended. |
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(g) A documentary fee charged in accordance with this |
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section before September 1, 2011, is considered reasonable for |
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purposes of this section. |
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(h) 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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(i) 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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(j) The commissioner has exclusive jurisdiction to enforce |
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this section. |
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SECTION 2. This Act takes effect September 1, 2011. |