By Grusendorf                                         H.B. No. 2338
       74R5841 JMM-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of automobile brokering.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 1.03, Texas Motor Vehicle Commission Code
    1-5  (Article 4413(36), Vernon's Texas Civil Statutes), is amended by
    1-6  amending Subdivision (10) and adding Subdivisions (23) and (24) to
    1-7  read as follows:
    1-8              (10)  "Broker" means a dealer <person> who, for a fee,
    1-9  commission, or other valuable consideration, regardless of the
   1-10  manner or time of payment, arranges, negotiates, assists, or
   1-11  effectuates or offers to arrange, negotiate, assist, or effectuate
   1-12  a transaction involving the sale, for purposes other than resale,
   1-13  of a new or used motor vehicle, <and who is> not owned by the
   1-14  dealer, for another<:>
   1-15                    <(A)  a dealer or bona fide employee of a dealer
   1-16  when acting on behalf of a dealer;>
   1-17                    <(B)  a representative or bona fide employee of a
   1-18  representative when acting on behalf of a representative;>
   1-19                    <(C)  a distributor or bona fide employee of a
   1-20  distributor when acting on behalf of a distributor;  or>
   1-21                    <(D)  at any point in the transaction the bona
   1-22  fide owner of the vehicle involved in the transaction>.
   1-23              (23)  "Automobile broker" means a broker.
   1-24              (24)  "Automobile buying service" means a broker.
    2-1        SECTION 2.  Subchapter D,  Texas Motor Vehicle Commission
    2-2  Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
    2-3  by adding Section 4.021 to read as follows:
    2-4        Sec. 4.021.  AUTOMOBILE BROKER.  (a)  A person may not act as
    2-5  an automobile broker or automobile buying service unless the person
    2-6  is licensed as a dealer under this Act.
    2-7        (b)  The commission shall adopt rules providing for the
    2-8  issuance of a dealer's license for a person who engages in business
    2-9  as an automobile broker or automobile buying service.
   2-10        SECTION 3.  Section 5.03, Texas Motor Vehicle Commission Code
   2-11  (Article 4413(36), Vernon's Texas Civil Statutes), is repealed.
   2-12        SECTION 4.  (a)  Except as provided by Subsection (b), this
   2-13  Act takes effect September 1, 1995.
   2-14        (b)  Section 4.021, Texas Motor Vehicle Commission Code
   2-15  (Article 4413(36), Vernon's Texas Civil Statutes), as added by this
   2-16  Act, and Section 3 of this Act take effect January 1, 1996.
   2-17        (c)  The Motor Vehicle Board of the Texas Department of
   2-18  Transportation shall adopt rules under this Act not later than
   2-19  November 1, 1995.
   2-20        SECTION 5.  The importance of this legislation and the
   2-21  crowded condition of the calendars in both houses create an
   2-22  emergency and an imperative public necessity that the
   2-23  constitutional rule requiring bills to be read on three several
   2-24  days in each house be suspended, and this rule is hereby suspended.