An Act limiting motor vehicle dealer documentation fees

194th Legislature (2025-2026) Introduced by Jim Hawkins and 3 co-sponsors

Caps documentary fees at $400 for vehicle transactions over $2,500; fees on $2,500 or less face penalties or license action.

Bill reported favorably by committee and referred to the committee on House Ways and Means

Overview

Bill Number: H.3690

Title: An Act limiting motor vehicle dealer documentation fees

Introduced: February 27, 2025

Current Status: Reported favorably by committee and referred to the House Ways and Means Committee; previously referred to Transportation; related action in Senate concurred.

Primary Sponsor: Rep. Steven S. Howitt (and co-petitioners: Rep. Joseph D. McKenna, Rep. James K. Hawkins)

This bill would amend Chapter 90 of the General Laws by adding a new Section 63(A) governing “documentary” or paperwork preparation fees charged by licensed motor vehicle dealers.

What the bill would do (Key Provisions)

Cap on documentary fees for transactions over $2,500: A motor vehicle dealer licensed by the Registry of Motor Vehicles may charge a documentary preparation fee of up to $400 for the various paperwork involved in the sale, financing, leasing, insurance, liens, warranties, disclosures, and other procedures related to a vehicle transaction, provided the transaction amount exceeds $2,500.

Penalties for fees on smaller deals: For vehicle transactions at or below $2,500, any documentary preparation fee charged by the dealer would subject the dealer to penalties, including a fine and/or suspension or revocation of their license, as determined by the Registry of Motor Vehicles (RMV).

Who and what would be affected

Who is covered: Motor vehicle dealers licensed by the RMV in Massachusetts.

What would change for dealers: Dealers could charge a capped documentary fee of up to $400 per qualifying vehicle transaction above $2,500; charges on smaller transactions ($2,500 or less) could trigger disciplinary actions (fines and/or license penalties).

What would not change: The bill preserves the general framework that documentary fees exist, but imposes explicit caps and enforcement mechanisms to limit fees and protect consumers.

Procedural and timeline aspects

Legislative actions to date:

Referred to Transportation on February 27, 2025.
Senate concurrence noted on February 27, 2025.
Bill reported favorably by committee and referred to House Ways and Means on July 28, 2025.
Hearing scheduled (as of a dated entry) for May 13, 2025, from 1:00 PM to 5:00 PM in Room B-2.

Related bill: HD 1118 (replaces) – indicates ongoing discussion in prior session cycles on similar topics.

Effective date: The text does not specify a sunset or transition date; if enacted, the section would become law as part of Chapter 90.

Potential impact and considerations

Consumer protection: By capping documentary fees at $400 on larger deals, the bill aims to reduce or standardize ancillary costs paid by buyers.

Dealer revenue and compliance: Dealers would need to adjust invoicing practices to ensure charges conform to the $400 cap for qualifying transactions and would face penalties for fees on smaller deals.

Regulatory enforcement: RMV would administer penalties, including fines and potential license suspension or revocation for noncompliance.

Summary

H.3690 seeks to limit motor vehicle dealer documentary fees by establishing a $400 cap for transactions over $2,500 and imposing penalties for any documentary fees charged on transactions at or below $2,500. The bill would add a new Section 63(A) to Chapter 90 and is currently moving through the Legislature, with committee actions and a scheduled hearing noted in the bill’s legislative history.

Bill