BILL ANALYSIS



C.S.H.B. 499
By: Finnell
May 6, 1995
Committee Report (Substituted)


BACKGROUND

Currently, many rental car agencies near the state border register
their rental cars in other states to avoid higher registration fees
in Texas.  This practice causes the state to lose a significant
amount of revenue each year.

PURPOSE

HB 499 would prohibit people from renting motor vehicles that are
not registered in the State of Texas to public employees on
official business.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 1, Title 20, Revised Statues, by adding
Article 601j.
           
     Sec. 1.  Defines "car rental company", "state agency", and
"state employee."
     Sec. 2.  A person may not rent a motor vehicle to a state
     employee if compensation is to be paid by a state agency
     unless the vehicle is registered in the state.  If a vehicle     registered in the state is not available, the person
     must provide the public entity a copy of an affidavit via
     registered mail within 10 days stating that a state registered
     vehicle was not available.
     Sec. 3.  An offense under this article is a Class C
misdemeanor.

SECTION 2.  Effective date:  September 1, 1995.

SECTION 3.  Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

(1) SECTION 1 (Sec. 1 DEFINITIONS) deletes the definitions of
"Public employee" and "Public      entity." Adds definitions of,
                                   "Car rental company", "State
                                   agency" and "State Employee."

(2) SECTION 1 (Sec. 2 STATE REGISTRATION OF RENTAL VEHICLES)
conforming     language changes throughout section.

(3) SECTION 1 (Sec. 2(b)(2)) substitute bill allows the car rental
company to notify the state   agency with a copy of the affidavit
                              via registered mail. Original bill
                              simply stated that the company must
                              "provide" the agency with an
                              affidavit.

(4) SECTION 1 (Sec. 2(c)) of the original bill is deleted in the
substitute.

SUMMARY OF COMMITTEE ACTION

Pursuant to posting of public hearing on February 27, 1995, the
House Committee on State Affairs convened in Public Hearing on
March 6th, 1995 to consider HB 499.  The chair laid out HB 499 and
recognized Rep. Finnell to explain the bill.  The chair laid out a
complete substitute which was not adopted.  The chair recognized
Greg Hooser representing Alamo Rent-A-Car to provide neutral
testimony on the bill.  The chair recognized Rep. Finnell to close. 
The chair left HB 499 pending.  HB 499 was considered in a Formal
Meeting of the House State Affairs Committee on May 4, 1995.  The
chair laid out HB 499.  The committee considered a complete
substitute.  The substitute was adopted without objection.   HB 499
was reported favorably, as substituted, with the recommendation
that it do pass and be printed by a record vote of 14 aye, 0 nay,
0 PNV, and 1 absent.