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.
2-16 * * * * *