SRC-DPW H.B. 1510 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1510
By: Marchant (Shapiro)
State Affairs
5/14/1999
Engrossed


DIGEST 

Currently, Chapter 349 (Motor Vehicle Installment Sales), Finance Code,
authorizes a documentary fee that may not exceed $50 to be included in the
principal balance of a retail installment contract for the sale of a motor
vehicle. "Motor vehicle" includes an automobile, truck, truck tractor,
trailer, semitrailer, or bus, and a commercial vehicle or heavy commercial
vehicle. This fee is intended to compensate the retail seller for services
rendered for or on behalf of the retail buyer in preparing, handling, and
processing documents relating to the motor vehicle and to the closing of
the retail installment transaction. The majority of motor vehicle retail
installment transactions in Texas involve the sale of automobiles and light
trucks to consumers for personal, or family use. Few transactions involve
heavy commercial vehicles.  However, many buyers of commercial vehicles are
corporations, and it is common that multiple units of trucks and trailers
may be purchased at one time, such that the total contract price is several
hundred thousand dollars, or more. The time and paperwork included in
documenting a heavy commercial vehicle transaction is more extensive than
that which is required in an automobile transaction. H.B 1510 authorizes a
documentary fee of $50 for a motor vehicle retail installment contract or a
reasonable amount agreed to by the retail seller and retail buyer for a
heavy commercial vehicle retail installment contract.  

PURPOSE

As proposed, H.B. 1510 requires a document fee to be included in a vehicle
retail installment contract. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 348.006(c), Finance Code, to prohibit the
documentary fee from exceeding $50 for a motor vehicle retail installment
contract or a reasonable amount agreed to by the retail seller and retail
buyer for a heavy commercial vehicle retail installment contract. Makes a
conforming change.  

SECTION 2. Effective date: September 1, 1999.

SECTION 3. Emergency clause.