Texas House Bill HB2299

Texas 2009 - 81st Regular

Caption

Relating to a motor vehicle dealer's payment to a secured party of the balance due on a used motor vehicle and to the bond requirement for certain motor vehicle sellers.

Impact

By enforcing the requirement for dealers to ensure that all balances due are settled prior to selling a used vehicle, the bill is expected to reinforce consumer protection laws in Texas. It seeks to prevent scenarios where consumers unknowingly buy vehicles that could be repossessed due to unpaid debts. This change in law will align practices among dealers and foster a more trustworthy marketplace for used motor vehicles.

Summary

House Bill 2299 addresses the obligations of motor vehicle dealers regarding payments due to secured parties on used motor vehicles. The bill mandates that before a dealer can sell or advertise a used vehicle with an outstanding debt, they must first clear that balance and submit a notarized receipt to the relevant department. This regulation aims to enhance transparency in vehicle sales and protect consumers from purchasing vehicles that may have outstanding liens against them.

Contention

While the bill aims to improve accountability among motor vehicle dealers, there may be discussions regarding the additional administrative burden placed on these dealers. The imposition of the notarization requirement could be viewed as an added step that might complicate the sales process for dealers. Some dealers may express concerns over how these new stipulations might impact their business operations and the competitive landscape within the used car market.