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2-11 (Article 4413(36), Vernon's Texas Civil Statutes), is repealed.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.