1-1 By: Cain (Senate Sponsor - Lucio) H.B. No. 699
1-2 (In the Senate - Received from the House March 11, 1993;
1-3 March 15, 1993, read first time and referred to Committee on State
1-4 Affairs; March 24, 1993, reported favorably by the following vote:
1-5 Yeas 9, Nays 0; March 24, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Harris of Dallas x
1-9 Rosson x
1-10 Carriker x
1-11 Henderson x
1-12 Leedom x
1-13 Lucio x
1-14 Luna x
1-15 Nelson x
1-16 Patterson x
1-17 Shelley x
1-18 Sibley x
1-19 West x
1-20 Whitmire x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to regulation of certain motor vehicle dealers and the
1-24 sale, titling, and registration of certain motor vehicles.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Section (a)(1-A)(vii), Article 6686, Revised
1-27 Statutes, is amended to read as follows:
1-28 (vii) In addition to other requirements provided by
1-29 law, the Department may not issue or renew a general distinguishing
1-30 number as a motor vehicle dealer or a wholesale motor vehicle
1-31 auction to an applicant until the applicant shows proof
1-32 satisfactory to the Department that the applicant has purchased a
1-33 properly executed surety bond in the amount of $25,000 with good
1-34 and sufficient surety approved by the Department. The bond shall
1-35 be approved as to form by the attorney general and shall be
1-36 conditioned on the applicant's payment of all valid bank drafts,
1-37 including checks, drawn by the applicant for the purchase of motor
1-38 vehicles and <in> the applicant's transfer of good title to each
1-39 motor vehicle the applicant offers for sale. In lieu of the bond
1-40 otherwise required by this subdivision, the Department may accept
1-41 and receive the pledge of cash, a cash deposit, a certificate of
1-42 deposit, or other instrument determined by the Department to be
1-43 adequate security for the obligations of the bond. Recovery
1-44 against the bond or other security may be made by a person who
1-45 obtains a judgment against a dealer or wholesale motor vehicle
1-46 auction assessing damages and attorney's fees for an act or
1-47 omission on which the bond is conditioned if the act or omission
1-48 occurred during the term for which the general distinguishing
1-49 number will be valid. The requirements of this subdivision do not
1-50 apply to a person licensed by the <Texas> Motor Vehicle Board of
1-51 the Texas Department of Transportation <Commission>.
1-52 SECTION 2. The importance of this legislation and the
1-53 crowded condition of the calendars in both houses create an
1-54 emergency and an imperative public necessity that the
1-55 constitutional rule requiring bills to be read on three several
1-56 days in each house be suspended, and this rule is hereby suspended,
1-57 and that this Act take effect and be in force from and after its
1-58 passage, and it is so enacted.
1-59 * * * * *
1-60 Austin,
1-61 Texas
1-62 March 24, 1993
1-63 Hon. Bob Bullock
1-64 President of the Senate
1-65 Sir:
1-66 We, your Committee on State Affairs to which was referred H.B.
1-67 No. 699, have had the same under consideration, and I am instructed
1-68 to report it back to the Senate with the recommendation that it do
2-1 pass and be printed.
2-2 Rosson,
2-3 Vice-Chairman
2-4 * * * * *
2-5 WITNESSES
2-6 FOR AGAINST ON
2-7 ___________________________________________________________________
2-8 Name: Tom Blanton x
2-9 Representing: Texas Automobile Dealers Assn
2-10 City: Austin
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