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A BILL TO BE ENTITLED
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AN ACT
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relating to a convenience fee for processing electronic payments |
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for motor vehicles. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 348, Finance Code, is |
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amended by adding Section 348.416 to read as follows: |
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Sec. 348.416. CONVENIENCE FEE FOR PROCESSING ELECTRONIC |
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PAYMENTS AUTHORIZED. (a) In this section, "electronic payment" |
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means a payment made by credit card, debit card, electronic funds |
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transfer, electronic check, or other electronic method. |
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(b) A holder of a retail installment contract or the |
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holder's agent may collect a fee for processing a retail buyer's |
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electronic payment under the contract only if: |
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(1) the fee is reasonably related to the expense |
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incurred by the holder or holder's agent in processing the |
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electronic payment; |
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(2) the fee does not exceed the lesser of $10 or five |
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percent of the amount of the payment; and |
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(3) the holder or holder's agent: |
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(A) allows the buyer to make a payment by a method |
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other than an electronic payment that does not incur a fee; |
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(B) does not establish electronic payment as the |
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expected form of payment; and |
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(C) informs the buyer of the following before the |
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buyer agrees to make an electronic payment: |
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(i) the amount of the fee to be charged |
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under this section; |
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(ii) that the buyer may make a payment by an |
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alternative method that does not incur a fee, including by check, |
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cash, or money order; and |
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(iii) that the holder or holder's agent may |
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not establish electronic payment as the expected form of payment. |
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SECTION 2. This section is effective September 1, 2025. |