By: Thompson of Harris (Senate Sponsor - Carona)	H.B. No. 2462
	(In the Senate - Received from the House April 22, 2013;
	April 25, 2013, read first time and referred to Committee on
	Business and Commerce; May 8, 2013, reported adversely, with
	favorable Committee Substitute by the following vote:
	Yeas 7, Nays 0; May 8, 2013, sent to printer.)
	COMMITTEE SUBSTITUTE FOR H.B. No. 2462	By:  Carona

	A BILL TO BE ENTITLED
	AN ACT
	relating to automobile club memberships offered in connection with
	certain motor vehicle retail installment contracts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 348.005, Finance Code, is amended to
	read as follows:
	Sec. 348.005.  ITEMIZED CHARGE. An amount in a retail
	installment contract is an itemized charge if the amount is not
	included in the cash price and is the amount of:
	(1)  fees for registration, certificate of title, and
	license and any additional registration fees charged by a full
	service deputy under Section 520.008 [502.114], Transportation
	Code;
	(2)  any taxes;
	(3)  fees or charges prescribed by law and connected
	with the sale or inspection of the motor vehicle; and
	(4)  charges authorized for insurance, service
	contracts, warranties, automobile club memberships, or a debt
	cancellation agreement by Subchapter C.
	SECTION 2.  Subchapter E, Chapter 348, Finance Code, is
	amended by adding Section 348.414 to read as follows:
	Sec. 348.414.  AUTOMOBILE CLUB MEMBERSHIP OFFERED IN
	CONNECTION WITH RETAIL INSTALLMENT CONTRACT. (a)  A retail seller
	may, at the time a retail installment contract is executed, offer to
	sell to the retail buyer an automobile club membership.
	(b)  The retail seller shall give the retail buyer written
	notice at the time the retail installment contract is executed that
	the retail buyer:
	(1)  is not required to purchase the membership as a
	condition for approval of the contract; and
	(2)  is entitled to cancel the membership and receive a
	full refund of the purchase price of the membership before the 31st
	day after the date the contract is executed.
	(c)  The retail seller shall notify the retail buyer if the
	membership includes services that are provided by the manufacturer
	as part of the motor vehicle purchase.
	(d)  The amount charged for a membership as authorized by
	Subsection (a) must be reasonable.
	SECTION 3.  The changes in law made by this Act apply only to
	a retail installment contract executed on or after the effective
	date of this Act.  A retail installment contract executed before the
	effective date of this Act is governed by the law in effect when the
	retail installment contract was executed, and the former law is
	continued in effect for that purpose.
	SECTION 4.  This Act takes effect September 1, 2013.
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