TWT H.B. 1473 75(R)BILL ANALYSIS


TRANSPORTATION
H.B. 1473
By: Siebert
3-25-97
Committee Report (Substituted)



BACKGROUND 

The passage of SB 1139 in the 74th Legislature brought all dealers under
the regulatory umbrella of the Motor Vehicle Board, eliminating the use of
board licensure as a method of drawing a per se legal distinction between
franchised and independent dealers.  Many provisions of law were amended
to reflect this change.  However,  Section 503.033, Transportation Code,
was not. At no time since its enactment has the security requirements of
Sec. 503.033 applied to franchised dealers. The laws concerning security
requirements clearly applied only to independent dealers. S.B. 1139 did
not make that distinction.  

PURPOSE

H.B. 1473 clarifies the rights and duties of certain categories of motor
vehicle dealers licensed under the Transportation Code.  It would codify
the terms of SB 1446, enacted by the 74th Legislature (but not included in
the enactment of the Transportation Code by that legislature) and
otherwise bring the Transportation Code into conformity with laws passed
by the 74th Legislature. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 503.033(g), Transportation Code, exempting from
this section persons licensed as a franchised motor vehicle dealer by the
department's Motor Vehicle Board. 

SECTION 2.  Amends Section 503.036, Transportation Code, establishing the
legal distinctions  and defining the rights assigned to the three dealer
categories:  (a) franchised motor vehicle dealers, (b) independent motor
vehicle dealers, and (c) wholesale motor vehicle dealers.  

SECTION 3.  Emergency Clause. Effective upon passage.


COMPARISON OF ORIGINAL TO SUBSTITUTE

There are no changes between substitute and original. The substitute
contains a Legislative Council drafting number.