SRC-TBR H.B. 1994 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1994
77R6323 DWS-FBy: Marchant (Carona)
Business & Commerce
5/2/2001
Engrossed


DIGEST AND PURPOSE 

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.  H.B. 1994
increases from $50 to $75 the maximum allowable documentary fee.  

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 345.251(b) and (c), Finance Code, to provide
that if a documentary fee is charged under this section the fee: must be
charged to cash buyers and credit buyers; may not exceed $75, rather than
$50; and must be disclosed on the retail installment contract as a separate
itemized charge. 

(c)  Makes a conforming change.

SECTION 2.  Amends Section 348.006(c), Finance Code, to make a conforming
change. 

SECTION 3.  Effective date: upon passage or September 1, 2001.