By: Armbrister S.B. No. 1314
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation and licensing of wholesale motor vehicle
1-2 auctions.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (2-A), Section (a), Article 6686,
1-5 Revised Statutes, is amended to read as follows:
1-6 (2-A) Wholesale Motor Vehicle Auction
1-7 License. (i) In this subsection "person" means an individual,
1-8 corporation, partnership, firm, or other legal entity.
1-9 (ii) In this subsection "wholesale motor
1-10 vehicle auction" means a person who is in the business of offering
1-11 motor vehicles for sale to the highest bidder in regular periodic
1-12 transactions at a permanent location.
1-13 (iii) A wholesale motor vehicle auction
1-14 may offer motor vehicles for sale only by bid.
1-15 (iv) Except as provided by Subdivision
1-16 (xi) of this subsection, a <A> wholesale motor vehicle auction may
1-17 not offer motor vehicles through its auction services to a
1-18 purchaser or prospective purchaser other than a dealer who holds a
1-19 currently valid license assigned by the Department or a currently
1-20 valid license and, if applicable, a bond, assigned by the
1-21 appropriate authority of another state or nation. A wholesale
1-22 motor vehicle auction may not make its facilities or its general
1-23 distinguishing number available to any other person for purposes of
2-1 the sale or auction of motor vehicles.
2-2 (v) No person may engage in the business
2-3 of a wholesale motor vehicle auction unless that person has applied
2-4 to the Department for, and has been issued, a currently valid
2-5 wholesale motor vehicle auction general distinguishing number
2-6 assigned by the Department for each location from which the person
2-7 engages in business.
2-8 (vi) Subject to the terms of this
2-9 subsection, the holder of a wholesale motor vehicle auction general
2-10 distinguishing number may, at the location for which the general
2-11 distinguishing number is issued:
2-12 (A) accept one or more
2-13 motor vehicles on consignment for purposes of auction; and
2-14 (B) offer for sale by bid
2-15 to the highest bidder motor vehicles titled in the name of the
2-16 wholesale motor vehicle auction or in the name of another person.
2-17 (vii) The provisions of Subdivisions (vi),
2-18 (vii), (viii), and (ix), of Subsection (1-A) of this section apply
2-19 to wholesale motor vehicle auctions.
2-20 (viii) Except as provided by this
2-21 subdivision, the Department may not assign more than one general
2-22 distinguishing number for a location for which a wholesale motor
2-23 vehicle auction general distinguishing number has been assigned.
2-24 The Department may assign a dealer general distinguishing number to
2-25 the holder of a wholesale motor vehicle auction general
3-1 distinguishing number for a location for which a wholesale motor
3-2 vehicle auction general distinguishing number has been assigned.
3-3 Subsection (1-A) of this section applies to the assignment of a
3-4 dealer general distinguishing number under this subdivision to the
3-5 same extent that it applies to any other application for and
3-6 assignment of a dealer general distinguishing number.
3-7 (ix) This subsection does not require that
3-8 a wholesale motor vehicle auction take title to a motor vehicle as
3-9 a prerequisite to conducting auction services with respect to the
3-10 vehicle.
3-11 (x) A person otherwise exempt under
3-12 Subsection (1-A)(iv)(H) of this section from the requirement that
3-13 the person obtain a general distinguishing number is not required
3-14 by this Subsection to obtain a general distinguishing number.
3-15 (xi) Motor vehicles owned by the
3-16 government of the United States or the State of Texas or any
3-17 department, agency, or subdivision thereof may be offered for sale
3-18 by a wholesale motor vehicle auction to a purchaser or prospective
3-19 purchaser who does not hold a valid license issued by the
3-20 Department or a currently valid license assigned by the appropriate
3-21 authority of another state.
3-22 SECTION 2. This Act takes effect September 1, 1995.
3-23 SECTION 3. The importance of this legislation and the
3-24 crowded condition of the calendars in both houses create an
3-25 emergency and an imperative public necessity that the
4-1 constitutional rule requiring bills to be read on three several
4-2 days in each house be suspended, and this rule is hereby suspended.