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AN ACT
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relating to automobile club memberships offered in connection with |
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certain motor vehicle retail installment contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 348.005, Finance Code, is amended to |
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read as follows: |
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Sec. 348.005. ITEMIZED CHARGE. An amount in a retail |
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installment contract is an itemized charge if the amount is not |
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included in the cash price and is the amount of: |
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(1) fees for registration, certificate of title, and |
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license and any additional registration fees charged by a full |
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service deputy under Section 520.008 [502.114], Transportation |
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Code; |
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(2) any taxes; |
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(3) fees or charges prescribed by law and connected |
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with the sale or inspection of the motor vehicle; and |
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(4) charges authorized for insurance, service |
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contracts, warranties, automobile club memberships, or a debt |
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cancellation agreement by Subchapter C. |
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SECTION 2. Subchapter E, Chapter 348, Finance Code, is |
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amended by adding Section 348.414 to read as follows: |
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Sec. 348.414. AUTOMOBILE CLUB MEMBERSHIP OFFERED IN |
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CONNECTION WITH RETAIL INSTALLMENT CONTRACT. (a) A retail seller |
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may, at the time a retail installment contract is executed, offer to |
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sell to the retail buyer an automobile club membership. |
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(b) The retail seller shall give the retail buyer written |
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notice at the time the retail installment contract is executed that |
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the retail buyer: |
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(1) is not required to purchase the membership as a |
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condition for approval of the contract; and |
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(2) is entitled to cancel the membership and receive a |
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full refund of the purchase price of the membership before the 31st |
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day after the date the contract is executed. |
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(c) The retail seller shall notify the retail buyer if the |
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membership includes services that are provided by the manufacturer |
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as part of the motor vehicle purchase. |
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(d) The amount charged for a membership as authorized by |
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Subsection (a) must be reasonable. |
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SECTION 3. The changes in law made by this Act apply only to |
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a retail installment contract executed on or after the effective |
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date of this Act. A retail installment contract executed before the |
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effective date of this Act is governed by the law in effect when the |
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retail installment contract was executed, and the former law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2013. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2462 was passed by the House on April |
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18, 2013, by the following vote: Yeas 140, Nays 3, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2462 on May 16, 2013, by the following vote: Yeas 139, Nays 2, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2462 was passed by the Senate, with |
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amendments, on May 15, 2013, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |