1-1  By:  Armbrister                                       S.B. No. 1314
    1-2        (In the Senate - Filed March 10, 1995; March 20, 1995, read
    1-3  first time and referred to Committee on State Affairs; May 8, 1995,
    1-4  reported adversely, with favorable Committee Substitute by the
    1-5  following vote:  Yeas 12, Nays 0; May 8, 1995, sent to printer.)
    1-6  COMMITTEE SUBSTITUTE FOR S.B. No. 1314              By:  Armbrister
    1-7                         A BILL TO BE ENTITLED
    1-8                                AN ACT
    1-9  relating to the regulation and licensing of wholesale motor vehicle
   1-10  auctions.
   1-11        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-12        SECTION 1.  Subsection (2-A), Section (a), Article 6686,
   1-13  Revised Statutes, is amended to read as follows:
   1-14              (2-A)  Wholesale Motor Vehicle Auction
   1-15  License.  (i)  In this subsection "person" means an individual,
   1-16  corporation, partnership, firm, or other legal entity.
   1-17                          (ii)  In this subsection "wholesale motor
   1-18  vehicle auction" means a person who is in the business of offering
   1-19  motor vehicles for sale to the highest bidder in regular periodic
   1-20  transactions at a permanent location.
   1-21                          (iii)  A wholesale motor vehicle auction
   1-22  may offer motor vehicles for sale only by bid.
   1-23                          (iv)  Except as provided by Subdivision
   1-24  (xi) of this subsection, a <A> wholesale motor vehicle auction may
   1-25  not offer motor vehicles through its auction services to a
   1-26  purchaser or prospective purchaser other than a dealer who holds a
   1-27  currently valid license assigned by the Department or a currently
   1-28  valid license and, if applicable, a bond, assigned by the
   1-29  appropriate authority of another state or nation.  A wholesale
   1-30  motor vehicle auction may not make its facilities or its general
   1-31  distinguishing number available to any other person for purposes of
   1-32  the sale or auction of motor vehicles.
   1-33                          (v)  No person may engage in the business
   1-34  of a wholesale motor vehicle auction unless that person has applied
   1-35  to the Department for, and has been issued, a currently valid
   1-36  wholesale motor vehicle auction general distinguishing number
   1-37  assigned by the Department for each location from which the person
   1-38  engages in business.
   1-39                          (vi)  Subject to the terms of this
   1-40  subsection, the holder of a wholesale motor vehicle auction general
   1-41  distinguishing number may, at the location for which the general
   1-42  distinguishing number is issued:
   1-43                    (A)  accept one or more motor vehicles on
   1-44  consignment for purposes of auction; and
   1-45                    (B)  offer for sale by bid to the highest bidder
   1-46  motor vehicles titled in the name of the wholesale motor vehicle
   1-47  auction or in the name of another person.
   1-48                          (vii)  The provisions of Subdivisions (vi),
   1-49  (vii), (viii), and (ix), of Subsection (1-A) of this section apply
   1-50  to wholesale motor vehicle auctions.
   1-51                          (viii)  Except as provided by this
   1-52  subdivision, the Department may not assign more than one general
   1-53  distinguishing number for a location for which a wholesale motor
   1-54  vehicle auction general distinguishing number has been assigned.
   1-55  The Department may assign a dealer general distinguishing number to
   1-56  the holder of a wholesale motor vehicle auction general
   1-57  distinguishing number for a location for which a wholesale motor
   1-58  vehicle auction general distinguishing number has been assigned.
   1-59  Subsection (1-A) of this section applies to the assignment of a
   1-60  dealer general distinguishing number under this subdivision to the
   1-61  same extent that it applies to any other application for and
   1-62  assignment of a dealer general distinguishing number.
   1-63                          (ix)  This subsection does not require that
   1-64  a wholesale motor vehicle auction take title to a motor vehicle as
   1-65  a prerequisite to conducting auction services with respect to the
   1-66  vehicle.
   1-67                          (x)  A person otherwise exempt under
   1-68  Subsection (1-A)(iv)(H) of this section from the requirement that
    2-1  the person obtain a general distinguishing number is not required
    2-2  by this Subsection to obtain a general distinguishing number.
    2-3                          (xi)  Motor vehicles owned by the
    2-4  government of the United States or the State of Texas or any
    2-5  department, agency, or subdivision thereof may be offered for sale
    2-6  by a wholesale motor vehicle auction to a purchaser or prospective
    2-7  purchaser who does not hold a valid license issued by the
    2-8  Department or a currently valid license assigned by the appropriate
    2-9  authority of another state.
   2-10        SECTION 2.  This Act takes effect September 1, 1995.
   2-11        SECTION 3.  The importance of this legislation and the
   2-12  crowded condition of the calendars in both houses create an
   2-13  emergency and an imperative public necessity that the
   2-14  constitutional rule requiring bills to be read on three several
   2-15  days in each house be suspended, and this rule is hereby suspended.
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