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.