HBA-TYH H.B. 1510 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1510
By: Marchant
Financial Institutions
4/12/1999
Introduced



BACKGROUND AND PURPOSE 

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 maximum
documentary fee of $250 for a heavy commercial vehicle. 

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. 

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 or $250 for a heavy
commercial vehicle.  Makes a conforming change. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.