BILL ANALYSIS C.S.S.B. 1314 By: Armbrister State Affairs 5-8-95 Committee Report (Substituted) 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 grant any additional rulemaking authority to a state officer, institution, or agency. 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.