HBA-MPM H.B. 115 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 115
By: Najera
Transportation
2/15/2001
Introduced



BACKGROUND AND PURPOSE 

A vehicle that has been extensively damaged by floodwaters may be hazardous
to drive.  Automobile dealers who have knowledge that a vehicle has been
damaged by floodwaters may fail to advise a prospective purchaser of the
damage done to the vehicle.  House Bill 115 requires a dealer of motor
vehicles to provide a prospective buyer, prior to completion of the sale of
a vehicle, notice that the vehicle has been submerged in water.  The bill
renders the sale of such a vehicle void if the notice is not supplied to
the buyer, and provides a penalty for dealers who fail to provide the
notice or provide misleading information in connection with the sale of the
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. 

ANALYSIS

House Bill 115 amends the Business & Commerce Code to prohibit a person in
the business of selling motor vehicles from selling a vehicle the person
knows has been damaged by being wholly or fully submerged in water, even if
the damage has been repaired, unless before the sale is complete the seller
provides the buyer a notice disclosing the damage.  The bill prescribes the
content and format of the notice.  
A sale that violates these provisions is voidable by the buyer and, if the
sale is voided, the buyer is entitled to recover all money from the seller,
as well as other property the buyer gave in connection with the sale. The
bill provides that a seller commits a Class A misdemeanor if the seller
fails to provide the notice or provides false or misleading information in
the notice.   

The bill amends the Code of Criminal Procedure to include in the definition
of "contraband," property used in the commission of a Class A misdemeanor
as set forth in the bill.  The bill further amends the code to prohibit the
sale of a motor vehicle forfeited under the provisions for the selling of
flood-damaged vehicles to a person who has not been provided the required
notice. 

EFFECTIVE DATE

September 1, 2001.