HBA-JLV H.B. 1994 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1994
By: Marchant
Financial Institutions
3/11/2001
Introduced



BACKGROUND 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.  In addition to
these  documents, the closing of a vehicle sale typically requires that the
seller prepare other documents on behalf of the purchaser, including those
relating to credit approval, insurance, and warranties.  House Bill 1994
increases the maximum allowable documentary fee. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1994 amends the Finance Code to increase, from $50 to $75, the
maximum limit for a documentary fee charged in a retail installment
contract involving certain types of vehicles. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.