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.