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A BILL TO BE ENTITLED
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AN ACT
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relating to the security requirement for the issuance or renewal of |
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a motor vehicle dealer general distinguishing number or a wholesale |
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motor vehicle auction general distinguishing number. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 503.033, Transportation Code, is amended |
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by amending Subsections (a), (d), and (g) and adding Subsections |
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(h) and (i) to read as follows: |
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(a) The department may not issue or renew a motor vehicle |
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dealer general distinguishing number or a wholesale motor vehicle |
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auction general distinguishing number unless the applicant |
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provides to the department[: |
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[(1)] satisfactory proof that the applicant has |
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purchased a properly executed surety bond in the amount of $50,000 |
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[$25,000] with a good and sufficient surety approved by the |
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department[; or |
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[(2) other security under Subsection (c)]. |
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(d) A person may recover against a surety bond [or other |
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security] if the person obtains against a person issued a motor |
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vehicle dealer general distinguishing number or a wholesale motor |
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vehicle auction general distinguishing number a judgment assessing |
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damages and reasonable attorney's fees based on an act or omission |
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on which the bond is conditioned that occurred during the term for |
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which the general distinguishing number was valid. |
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(g) A dealer shall post, adjacent to and in the same manner |
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as the dealer's license is posted, notice of the surety bond and the |
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procedure by which a claimant may recover against the surety bond. |
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The department by rule may prescribe the form of the notice required |
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under this subsection. |
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(h) The department shall publish on the department's |
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Internet website: |
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(1) the procedure by which a claimant may recover |
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against a surety bond; and |
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(2) the department's contact information. |
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(i) This section does not apply to a person licensed as a |
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franchised motor vehicle dealer by the department. |
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SECTION 2. Section 503.033(a), Transportation Code, as |
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amended by this Act, applies only to an application for the issuance |
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or renewal of a motor vehicle dealer general distinguishing number |
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or a wholesale motor vehicle auction general distinguishing number |
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submitted on or after the effective date of this Act. An |
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application submitted before the effective date of this Act is |
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governed by the law in effect on the date the application was |
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submitted, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2021. |