By: Lucio S.B. No. 449
A BILL TO BE ENTITLED
AN ACT
1-1 relating to regulation of certain motor vehicle dealers and the
1-2 sale, titling, and registration of certain motor vehicles.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section (a)(1-A)(vii), Article 6686, Revised
1-5 Statutes, is amended to read as follows:
1-6 (vii) In addition to other requirements provided by law, the
1-7 Department may not issue or renew a general distinguishing number
1-8 as a motor vehicle dealer or a wholesale motor vehicle auction to
1-9 an applicant until the applicant shows proof satisfactory to the
1-10 Department that the applicant has purchased a properly executed
1-11 surety bond in the amount of $25,000 with good and sufficient
1-12 surety approved by the Department. The bond shall be approved as
1-13 to form by the attorney general and shall be conditioned on the
1-14 applicant's payment of all valid bank drafts, including checks,
1-15 drawn by the applicant for the purchase of motor vehicles and <in>
1-16 the applicant's transfer of good title to each motor vehicle the
1-17 applicant offers for sale. In lieu of the bond otherwise required
1-18 by this subdivision, the Department may accept and receive the
1-19 pledge of cash, a cash deposit, a certificate of deposit, or other
1-20 instrument determined by the Department to be adequate security for
1-21 the obligations of the bond. Recovery against the bond or other
1-22 security may be made by a person who obtains a judgment against a
1-23 dealer or wholesale motor vehicle auction assessing damages and
2-1 attorney's fees for an act or omission on which the bond is
2-2 conditioned if the act or omission occurred during the term for
2-3 which the general distinguishing number will be valid. The
2-4 requirements of this subdivision do not apply to a person licensed
2-5 by the <Texas> Motor Vehicle Board of the Texas Department of
2-6 Transportation <Commission>.
2-7 SECTION 2. The importance of this legislation and the
2-8 crowded condition of the calendars in both houses create an
2-9 emergency and an imperative public necessity that the
2-10 constitutional rule requiring bills to be read on three several
2-11 days in each house be suspended, and this rule is hereby suspended,
2-12 and that this Act take effect and be in force from and after its
2-13 passage, and it is so enacted.