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.