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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Altamirano

 

DATE TYPED:

2/25/03

 

HB

 

 

SHORT TITLE:

Used Motor Vehicle Damage Disclosure

 

SB

809

 

 

ANALYST:

Wilson

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

NFI

 

 

 

 

 

SOURCES OF INFORMATION

 

Responses Received From

 

Taxation & Revenue Department (TRD)

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 809 requires the seller of a motor vehicle to disclose in writing to the purchaser, before the sale is completed, any material mechanical defect in the motor vehicle and any damage sustained by the motor vehicle due to fire, water, collision or other causes known to the seller.

 

In addition, SB 809 mandates that a seller promising repairs will be made, or conditions corrected in connection with the purchase of a used motor vehicle, provide the promise in writing and either attached to or incorporated into the sales contract.

 

     Significant Issues

 

The provisions of SB 809 will provide protection to the consumer.

 

TECHNICAL ISSUES

 

TRD suggests a provision in SB 809 providing for notification of the Motor Vehicle Division (MVD) by either a court or the seller/dealer of an adverse judgment against a dealer since it might provide grounds to the MVD Dealers Section for failing to renew a motor vehicle dealer’s license.

 

TRD also proposed the following change:  Page 2, Line 13: the phrase “wreck damage” should be changed to “damage caused by fire, water, or collision.” (to parallel language in Page 1, Line 25, through Page 2, Line 1).

 

DW/sb/njw