TITLE: Relating to the documentary fee charged in connection with the sale of certain recreational vehicles and boats.

SUMMARY: Relating to the documentary fee charged in connection with the sale of certain recreational vehicles and boats.

FULL TEXT:
AN ACT relating to the documentary fee charged in connection with the sale of certain recreational vehicles and boats. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 345.251, Finance Code, is amended by amending Subsections (a), (b), and (c) and adding Subsection (e) to read as follows: (a) A retail seller may charge a documentary fee for services rendered to, for, or on behalf of a retail buyer in [preparing] handling [] and processing documents relating to the sale of [ and closing a retail installment transaction involving] a motorcycle, motor-driven cycle, moped, all-terrain vehicle, boat, boat motor, boat trailer, or towable recreational vehicle. (b) If a documentary fee is charged under this section the fee: (1) must be charged to cash buyers and credit buyers; (2) may not exceed a reasonable amount agreed to by the retail seller and retail buyer for the documentary services, subject to a reasonable maximum amount set by rule by the finance commission [$50];and (3) must be disclosed on the buyer's order or retail installment contract as a separate itemized charge. (c) A preliminary work sheet on which a sale price is computed and that is shown to the retail buyer, an order from the buyer, or a retail installment contract must include in reasonable proximity to the place on the document where the documentary fee is disclosed: (1) the amount of the fee; and (2) the following notice in type that is bold-faced, capitalized, or underlined or otherwise conspicuously set out from the surrounding written material: "A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS [AND PERFORMING SERVICES] RELATING TO THE [CLOSING OF A] SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT AGREED TO BY THE PARTIES THAT IS NOT MORE THAN THE MAXIMUM AMOUNT ALLOWED BY THE STATE [$50].THIS NOTICE IS REQUIRED BY LAW." (e) The finance commission may adopt rules necessary to implement and enforce this section. SECTION 2. This Act takes effect September 1, 2013.