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 the
2-1 purposes of the sales 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 applied to
2-4 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 motor vehicles on
2-13 consignment for the purposes of auction; and
2-14 (B) offer for sale by bid to the highest bidder
2-15 motor vehicles titled in the name of the wholesale motor vehicle
2-16 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 The Department may not issue or issue a renewal of a wholesale
3-4 motor vehicle auction general distinguishing number to a person
3-5 unless the person holds a valid auctioneer license in this state
3-6 under the provisions of Article 8700, Revised Statutes. The person
3-7 applying for or applying for a renewal of a wholesale motor vehicle
3-8 auction general distinguishing number must be the same person who
3-9 holds a valid auctioneer license in this state under the provisions
3-10 of Article 8700, Revised Statutes. Subsection (1-A) of this
3-11 section applies to the assignment of a dealer general
3-12 distinguishing number under this subdivision to the same extent
3-13 that it applies to any other application for and assignment of a
3-14 dealer general distinguishing number.
3-15 (ix) This subsection does not require that
3-16 a wholesale motor vehicle auction take title to a motor vehicle as
3-17 a prerequisite to conducting auction services with respect to the
3-18 vehicle.
3-19 (x) A person otherwise exempt under
3-20 Subsection (1-a)(iv)(H) of this section from the requirement that
3-21 the person obtain a general distinguishing number is not required
3-22 by this Subsection to obtain a general distinguishing number.
3-23 (xi) Motor vehicles owned by the
3-24 government of the United States or the State of Texas or any
3-25 department, agency or subdivision thereof may be offered for sale
4-1 by a wholesale motor vehicle auction to a purchaser or prospective
4-2 purchaser who does not hold a valid license issued by the
4-3 Department or a currently valid license assigned by the appropriate
4-4 authority of another state.
4-5 SECTION 2. This Act is effective September 1, 1995.
4-6 SECTION 3. EMERGENCY. The importance of this legislation
4-7 and the crowded condition of the calendars in both houses create an
4-8 emergency and an imperative public necessity that the
4-9 constitutional rule requiring bills to be read on three several
4-10 days be suspended, and this rule is hereby suspended.