Highlights 77th Texas Legislature - Senate

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FINANCE
77 th Texas Legislature
Current law allows the seller of a vehicle to charge, and include on the retail installment contract, a
documentary fee in the amount of $50 for the preregistration of certain documents relating to the titling and
registration of a vehicle that is the subject of the sale.
Increases from $50 to $75 the maximum allowable documentary fee.
Debt Cancellation Agreements and Automobiles - H.B. 2139
by Representative Marchant
Senate Sponsor: Senator Carona
A debt cancellation agreement is insurance coverage that reimburses the retail buyer with the amount of
the difference between the proceeds of the buyer’s basic collision insurance policy on the motor vehicle
and the remaining amount owed on the vehicle, if the vehicle has been rendered a total loss. While a retail
buyer and retail seller may agree in a motor vehicle retail installment contract (contract) to include a
separate charge for a debt cancellation agreement, disagreement comes when there is a remaining amount
owed on the vehicle and the vehicle is rendered a total loss. This confusion arises due to the difference
between the insurance coverage that reimburses the retail buyer and the amount remaining owed.
Provides that a debt cancellation agreement or waiver included in a contract is not insurance or an
insurance product or service and that a separate charge for the debt cancellation agreement or waiver may
be included in a retail installment contract.
Authorizes a contract to include as a separate charge an amount for a debt cancellation agreement or
waiver under certain conditions.
Modernization of Financial Services (Gramm-Leach-Bliley Act) - H.B. 2155
by Representative Averitt
Senate Sponsor: Senator Sibley
As a result of the federal Gramm-Leach-Bliley Act (GLBA) passed in November 1999, states must comply
with certain licensing law that formerly prohibited common ownership of entities in insurance, securities,
and banking activities. GLBA also preempts state agent licensing laws that prohibit or interfere with a
depository institution’s ability to sell insurance. Activities available to national banks are expanded due to
the passage of GLBA, but in an effort to ensure the future viability of state charters, Texas state agencies
with regulatory authority over financial institutions seek to address the inconsistencies between current
state law and the limit for compliance under GLBA.
Provides that state bank and trust company charters be allowed to compete on a level with national banks
by authorizing activities beyond those allowed for national banks and their subsidiaries as determined by
the Commissioner of the Texas Department of Banking.
Senate Research Center 104