By: Ratliff S.B. No. 1035
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 $50,000 <$25,000> with good and
1-12 sufficient surety approved by the Department. The bond shall be
1-13 approved as to form by the attorney general and shall be
1-14 conditioned on the applicant's payment of all valid bank drafts,
1-15 including checks, drawn by the applicant for the purchase of motor
1-16 vehicles in the applicant's transfer of good title to each motor
1-17 vehicle the applicant offers for sale. In lieu of the bond
1-18 otherwise required by this subdivision, the Department may accept
1-19 and receive the pledge of cash, a cash deposit, a certificate of
1-20 deposit, or other instrument determined by the Department to be
1-21 adequate security for the obligations of the bond. Recovery
1-22 against the bond or other security may be made by a person who
1-23 obtains a judgment against a dealer or wholesale motor vehicle
2-1 auction assessing damages and attorney's fees for an act or
2-2 omission on which the bond is conditioned if the act or omission
2-3 occurred during the term for which the general distinguishing
2-4 number will be valid. The requirements of this subdivision do not
2-5 apply to a person licensed by the Texas Motor Vehicle Commission.
2-6 SECTION 2. The importance of this legislation and the
2-7 crowded condition of the calendars in both houses create an
2-8 emergency and an imperative public necessity that the
2-9 constitutional rule requiring bills to be read on three several
2-10 days in each house be suspended, and this rule is hereby suspended,
2-11 and that this Act take effect and be in force from and after its
2-12 passage, and it is so enacted.