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.