A bill for an act relating to administrative fees charged by motor vehicle dealers, and making penalties applicable.

2025-2026 Regular Session

Shifts from a $180 documentary fee cap to an uncapped administrative fee charged by dealers for sale-related services, with clearer disclosures and stronger consumer protections.

Committee report approving bill, renumbered as HF 758.

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Overview

HSB 133, introduced February 6, 2025, would replace the current “documentary fee” framework with an “administrative fee” framework for services dealers perform in connection with motor vehicle sales. The bill was approved by the committee and renumbered as HF 758 on March 5, 2025. It would also update required notices and strengthen consumer protection provisions related to these fees.

Purpose and intent

Shift from a documentary fee (capped at $180 per vehicle) to an administrative fee for services related to the sale of a motor vehicle, charged on behalf of the customer.

Remove the statutory cap on the administrative fee, enabling dealer charges beyond the current $180 limit.

Update disclosure requirements to reflect the new fee structure and ensure conspicuous notice to customers.

Key provisions

Fee framework change: A dealer may charge an administrative fee instead of a documentary fee for services performed in connection with the sale of a motor vehicle on behalf of the customer.

Cap removal: The bill strikes the existing maximum amount (currently $180 per vehicle) that dealers may charge for such a fee, effectively removing a price ceiling.

Notice and disclosures: The required notice in motor vehicle purchase agreements would be revised to conform to the new administrative fee framework. Dealers must clearly and conspicuously disclose the fee to customers.

Definition of services: The administrative fee would cover services related to the sale of the vehicle performed on behalf of the customer (distinct from third-party costs).

Enforcement and penalties: Violating the relevant consumer protection statute (Code section 322.19A) would constitute an unlawful practice under Code section 714.16. Remedies include injunctive relief, disgorgement of moneys or property, and civil penalties up to $40,000 per violation.

Who is affected

Motor vehicle dealers: Primary actors who would charge, disclose, and collect the administrative fee.

Consumers/buyers: Recipients of the services and disclosures; directly affected by fee levels and notice requirements.

Compliant enforcement and civil penalties: The state’s consumer protection framework would apply to violations.

Procedural and timeline highlights

Introduced: February 6, 2025, and referred to Transportation.

Subcommittee: February 10–11, 2025 (recommendation to pass).

Committee action: February 19, 2025 (report recommending passage; bill later renumbered as HF 758).

Committee report: March 5, 2025 (committee report approving bill; renumbered HF 758).

Potential impact and considerations

The removal of the fee cap could lead to higher administrative charges at the point of sale, affecting total purchase cost.

Clearer, but potentially broader, disclosure requirements aim to improve transparency for consumers.

Strengthened enforcement tools provide recourse for customers against improper fee practices.

Bill