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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 connection with the sale |
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of certain recreational vehicles and boats. |
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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 to |
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read as follows: |
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Sec. 345.251. DOCUMENTARY FEE FOR CERTAIN VEHICLES. (a) A |
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retail seller may charge a documentary fee for services rendered |
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to, for, or on behalf of a retail buyer in [preparing,] handling[,] |
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and processing documents relating to the sale of [, and closing a
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retail installment transaction involving,] a motorcycle, |
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motor-driven cycle, moped, all-terrain vehicle, boat, boat motor, |
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boat trailer, or towable recreational 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 agreed to by the |
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retail seller and retail buyer for the documentary services [$50]; |
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and |
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(3) must be disclosed on the buyer's order or retail |
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installment 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 bold-faced, |
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capitalized, or underlined or otherwise conspicuously set out from |
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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] |
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SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE |
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AMOUNT AGREED TO BY THE PARTIES [$50]. THIS NOTICE IS |
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REQUIRED BY LAW." |
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(d) A retail seller shall post the documentary fee notice |
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prescribed by Subsection (c) so that the notice is clearly visible |
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in each place where a sale of a vehicle or other good described by |
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Subsection (a) is finalized. If the language primarily used in an |
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oral sales presentation is not the same as the language in which the |
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retail installment contract is written, the retail seller shall |
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furnish to the retail buyer a written statement containing the |
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notice set out in Subsection (c) in the language primarily used in |
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the oral sales presentation. |
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(e) Before increasing the maximum amount of the documentary |
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fee the retail seller charges, a retail seller shall provide |
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written notice to the commissioner of the maximum amount of the |
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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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motorcycle, motor-driven cycle, moped, all-terrain vehicle, boat, |
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boat motor, boat trailer, or towable recreational vehicle. If the |
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commissioner determines that a documentary fee charged is not |
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reasonable, the commissioner may require that the documentary fee |
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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, 2013, 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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SECTION 2. This Act takes effect September 1, 2013. |