BILL ANALYSIS



S.B. 1314
By: Armbrister (Bosse)
05-17-95
Committee Report (Unamended)


BACKGROUND

Article 6686(a)(2-A), V.T.C.S., provides for the licensing of
wholesale motor vehicle auctions by the Texas Department of
Transportation (department).  A motor vehicle dealer licensed by
the department may not consign or sell more than five motor
vehicles at an off-site location unless the off-site location is a
licensed wholesale motor vehicle auction.  Motor vehicle auction
companies advertise, arrange, and conduct auctions and are required
under Article 8700, V.T.C.S., to be licensed by the Texas
Department of Licensing and Regulation.

In addition, a wholesale motor vehicle auction may offer motor
vehicles for sale only to persons who are licensed by the
department as vehicle dealers under Article 6686, V.T.C.S. 
Wholesale motor vehicle auctions have contracted with the U.S.
government to sell government vehicles.  However, federal law
requires that any property owned by the government must be offered
for sale to all persons.

PURPOSE

As proposed, C.S.S.B. 1314 sets forth requirements regarding the
issuance or renewal of a motor vehicle auction distinguishing
number.

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 Section (a)(2-A), Article 6686, V.T.C.S., as
follows:

     Sec. 2-A.  WHOLESALE MOTOR VEHICLE AUCTION LICENSE. 
     Authorizes motor vehicles owned by the U.S. government, the
     State of Texas, or any subdivision thereof to be offered for
     sale by an auction to a purchaser or prospective purchaser who
     does not hold a valid license issued by the department or a
     currently valid license assigned by the appropriate authority
     of another state.  Makes conforming changes.
SECTION 2. Effective date: September 1, 1995.

SECTION 3. Emergency clause.

SUMMARY OF COMMITTEE ACTION

Pursuant to a public notice announced from the House Floor on May
17, 1995, in accordance with House Rules, the House Committee on
Transportation met in a formal meeting on the House Floor, at Desk
22, on Wednesday, May 17, 1995, and was called to order by the
Chairman, Representative Clyde Alexander at 12:20 p.m.  The Chair
laid out S.B. 1314 by Armbrister/Bosse.  Representative Alonzo
moved that the Committee report S.B. 1314, without amendments, to
the full House with the recommendation that it do pass.  The motion
prevailed by the following vote: Ayes (6), Nayes (0), Absent (3),
Present not voting (0).