HB3178 • 2025

Requires a seller in a motor vehicle transaction that involves a retail installment contract or lease agreement to make a good faith effort to sell the retail installment contract or lease agreement to a lender on the exact terms that the seller and buyer negotiated.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Representative Sosa,, Senator Taylor, Representative Chotzen,, Grayber,, Lively,, Senator Campos,, Frederick,, Patterson,
Last action: 2025-06-06
Official status: Chapter Number Assigned
Effective date: Not listed

Plain English Breakdown

The plain English breakdown is still being put together. The official documents below are already here.

Bill History

2025-06-06 House
Chapter 81, (2025 Laws): Effective date January 1, 2026.
2025-05-14 House
Governor signed.
2025-05-08 House
Speaker signed.
2025-05-08 Senate
President signed.
2025-05-06 House
House concurred in Senate amendments and repassed bill. Ayes, 49; Excused, 9--Diehl, Evans, Levy B, Lewis, Nguyen H, Ruiz, Sosa, Valderrama, Wallan; Excused for Business of the House, 2--Harbick, Speaker Fahey.
2025-05-01 Senate
Third reading. Carried by Taylor. Passed. Ayes, 24; Nays, 2--Linthicum, Robinson; Excused, 3--Anderson, Meek, Thatcher.
2025-04-30 Senate
Second reading.
2025-04-29 Senate
Recommendation: Do pass with amendments to the A-Eng. bill. (Printed B-Eng.)
2025-04-24 Senate
Work Session held.
2025-04-22 Senate
Work Session held.
2025-04-17 Senate
Public Hearing held.
2025-04-10 House
Third reading. Carried by Sosa. Passed. Ayes, 53; Excused, 4--Cate, Lewis, Nguyen H, Owens; Excused for Business of the House, 3--Drazan, Wallan, Speaker Fahey.
2025-04-10 Senate
First reading. Referred to President's desk.
2025-04-10 Senate
Referred to Labor and Business.
2025-04-09 House
Rules suspended. Carried over to April 10, 2025 Calendar.
2025-04-08 House
Rules suspended. Carried over to April 9, 2025 Calendar.
2025-04-07 House
Second reading.
2025-04-04 House
Recommendation: Do pass with amendments and be printed A-Engrossed.
2025-04-01 House
Work Session held.
2025-02-04 House
Public Hearing held.
2025-01-17 House
Referred to Commerce and Consumer Protection.
2025-01-13 House
First reading. Referred to Speaker's desk.

Official Summary Text

Digest: Sets out rules a seller must follow when making a sale or lease of a motor vehicle that involves installment payments. (Flesch Readability Score: 60.6).
Requires a seller in a motor vehicle transaction that involves a retail installment contract or lease agreement to make a good faith effort to sell the retail installment contract or lease agreement to a lender on the exact terms that the seller and buyer negotiated. Requires the seller to undertake certain actions if the lender does not agree to buy the retail installment contract or lease agreement within 10 calendar days after the buyer takes possession of the motor vehicle.
Prohibits the seller from selling or paying off a loan balance for any trade-in vehicle that is part of the transaction before receiving a lender's final approval of funding. Specifies the liabilities a seller has for failing to comply with the prohibitions.
Requires the seller to provide the buyer with certain disclosures before concluding the transaction.
Punishes a violation of the Act as an unlawful practice under the Unlawful Trade Practices Act.
Relating to: Relating to conditions for financing a transaction involving a motor vehicle.
Current location: Chapter Number Assigned