The bill would amend Chapter 348 of the Finance Code relating to documentary fees charged for handling documents associated with a retail installment contract. The $50 documentary fee cap on motor vehicle retail installment contracts would be removed, and retailers would instead be able to charge a reasonable fee. The commissioner would be able to review the reasonableness of the fee. The Finance Commission may adopt and enforce rules related to determining standards of reasonableness.
 
The bill would take effect September 1, 2009. A documentary fee charged before September 1, 2009, would be considered reasonable for the purposes of the section. To the extent of conflict and regardless of the relative dates of enactment, the bill would prevail over any other bill, including HB 4361 and SB 1965.

Based on information provided by the Office of Consumer Credit Commissioner, it is assumed that two additional positions would be needed to implement the provisions of the bill. These would include one Financial Examiner I at a salary and benefits cost of $59,785 each year and one Attorney II at a salary and benefits cost of $73,285 each year to determine what is reasonable, to enforce the rules that would be established, and to respond to consumer complaints. Other costs associated with the new full-time-equivalent positions (FTEs), including travel, operating expenses, and consumables would total $33,000 each year. It is assumed that additional technology costs of $2,500 in fiscal year 2010 and $2,500 in fiscal year 2014 for computers and software for new positions would be realized as well.

The Office of Consumer Credit Commissioner is a self-leveling agency and is statutorily required to generate revenues sufficient to cover all of the agency's direct and indirect costs.

Technology costs for the new FTEs include $2,500 in fiscal year 2010 and $2,500 in fiscal year 2014 for computers and software.

No fiscal implication to units of local government is anticipated.