By Cain H.B. No. 699
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to regulation of certain motor vehicle dealers and the
1-3 sale, titling, and registration of certain motor vehicles.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section (a)(1-A)(vii), Article 6686, Revised
1-6 Statutes, is amended to read as follows:
1-7 (vii) In addition to other requirements provided by
1-8 law, the Department may not issue or renew a general distinguishing
1-9 number as a motor vehicle dealer or a wholesale motor vehicle
1-10 auction to an applicant until the applicant shows proof
1-11 satisfactory to the Department that the applicant has purchased a
1-12 properly executed surety bond in the amount of $25,000 with good
1-13 and sufficient surety approved by the Department. The bond shall
1-14 be approved as to form by the attorney general and shall be
1-15 conditioned on the applicant's payment of all valid bank drafts,
1-16 including checks, drawn by the applicant for the purchase of motor
1-17 vehicles and <in> the applicant's transfer of good title to each
1-18 motor vehicle the applicant offers for sale. In lieu of the bond
1-19 otherwise required by this subdivision, the Department may accept
1-20 and receive the pledge of cash, a cash deposit, a certificate of
1-21 deposit, or other instrument determined by the Department to be
1-22 adequate security for the obligations of the bond. Recovery
1-23 against the bond or other security may be made by a person who
2-1 obtains a judgment against a dealer or wholesale motor vehicle
2-2 auction assessing damages and attorney's fees for an act or
2-3 omission on which the bond is conditioned if the act or omission
2-4 occurred during the term for which the general distinguishing
2-5 number will be valid. The requirements of this subdivision do not
2-6 apply to a person licensed by the <Texas> Motor Vehicle Board of
2-7 the Texas Department of Transportation <Commission>.
2-8 SECTION 2. The importance of this legislation and the
2-9 crowded condition of the calendars in both houses create an
2-10 emergency and an imperative public necessity that the
2-11 constitutional rule requiring bills to be read on three several
2-12 days in each house be suspended, and this rule is hereby suspended,
2-13 and that this Act take effect and be in force from and after its
2-14 passage, and it is so enacted.