S.B. No. 1314
                                        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.