SRC-SLL H.B. 1595 75(R)    BILL ANALYSIS


Senate Research CenterH.B. 1595
By: Alexander (Cain)
State Affairs
5-13-97
Engrossed


DIGEST 

Currently, Article 4413(36), V.T.C.S., provides for the licensing of motor
vehicle dealers, manufacturers, distributors, lessors, and lease
facilitators, and regulates the legal relations between and among these
licensees and between any of these licensees and the purchasers of motor
vehicles. This bill will replace the Texas Motor Vehicle Commission with
the Texas Motor Vehicle Board and provide additional regulations regarding
motor vehicle dealers and manufacturers. 

PURPOSE

As proposed, H.B. 1595 replaces the Texas Motor Vehicle Commission with
the Texas Motor Vehicle Board and provides additional regulations
regarding motor vehicle dealers and manufacturers. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1.03, Article 4413(36), V.T.C.S., to define
"board," "director," "executive director," and "general distinguishing
number."  Redefines "dealer," "franchised dealer," "lessor," "licensee,"
"nonfranchised dealer," and "retail sale."  Makes conforming changes.  

SECTION 2. Amends Section 2.01, Article 4413(36), V.T.C.S., as follows:

Sec.  2.01.  New heading: TEXAS MOTOR VEHICLE BOARD. Provides that the
Motor Vehicle Board of the Texas Department of Transportation (board), in
conducting the policymaking and regulatory functions and duties imposed on
the board by this Act, whether mandatory or discretionary, and unless
otherwise provided by this Act, is an independent entity withing the Texas
Department of Transportation (department) and is not an advisory body to
the department.  Requires the board, rather than the Texas Motor Vehicle
Commission, to carry out the functions and duties conferred by this Act.
Makes conforming changes. 

SECTION 3. Amends Section 2.02, Article 4413(36), V.T.C.S., to provide
that the executive director of the department (executive director) is a
member of the board ex officio.  Authorizes the executive director to
attend a meeting of the board and to confer with and advise the board, the
chairman of the board, or the director of the board.  Prohibits the
executive director from voting on a matter coming before the board and is
not counted in the determination of a quorum at a meeting of the board.
Provides that, except as provided by this subsection, the provisions of
this Act relating to members of the board do not apply to the executive
director. 

SECTION 4. Amends Section 2.07, Article 4413(36), V.T.C.S., to make a
conforming change. 

SECTION 5. Amends Section 2.08A(c), Article 4413(36), V.T.C.S.,  to make
conforming changes. 

SECTION 6. Amends Section 2.09, Article 4413(36), V.T.C.S., as follows:

 Sec.  2.09.  New heading: DIRECTOR; STAFF; CONTRACTS; INDEMNITY.
Provides that an employee of the board is subject to dismissal if the
employee has an interest in or is related within the first degree by
consanguinity or affinity to a person who has an interest in a business
that leases motor vehicles.  Authorizes the director of the board, or a
designee, to take certain actions regarding certain contracts or
agreements.  Makes conforming changes. 

SECTION 7. Amends Section 3.01(a), Article 4413(36), V.T.C.S., to make
conforming and standard recodification changes. 

SECTION 8. Amends Subchapter C, Article 4413(36), V.T.C.S., by adding
Section 3.01A, as follows: 

Sec.  3.01A.  INTERACTION WITH DEPARTMENT.  Requires the board, in
coordination with the department, to develop and implement policies that
clearly delineate the policymaking responsibilities of the board and the
management responsibilities of the department. Authorizes the department,
by agreement with the board, to provide personnel and services to the
board as needed to carry out purposes, powers, and duties of the board.
Authorizes the board to delegate authority to personnel as needed. 

SECTION 9. Amends Section 3.03(b), Article 4413(36), V.T.C.S., to make
conforming and standard recodification changes. 

SECTION 10. Amends Section 3.04, Article 4413(36), V.T.C.S., as follows:

Sec.  3.04.  New heading: DELEGATION OF BOARD POWERS.  Makes conforming
changes. 

SECTION 11. Amends Section 3.05, Article 4413(36), V.T.C.S., to prohibit
the board, notwithstanding Subsection (a) of this section or another
provision of this Act or board rule, from initiating a proceeding alleging
a violation of this Act or a board rule relating to advertising until the
board has notified the licensee involved of the alleged violation and
given the licensee an opportunity to cure the violation without further
proceedings or liability.  Makes conforming changes. 

SECTION 12. Amends Section 3.06, Article 4413(36), V.T.C.S., to make
conforming and standard recodification changes.  

SECTION 13. Amends Section 3.07, Article 4413(36), V.T.C.S., to require an
order or decision to include a separate finding of fact with respect to
each specific issue the board is required by law to consider in reaching a
decision, and set forth additional findings of fact and conclusions of law
on which the order or decision is based.  Makes conforming changes. 

SECTION 14. Amends Section 3.08, Article 4413(36), V.T.C.S., to define
"contested case." Requires a hearing to be convened, rather than
conducted, at the time and place stated in the hearing notice.  Deletes a
provision requiring the hearing to be rescheduled and an amended notice
given if the hearing is not convened at the time and place stated in the
hearing notice.  Authorizes any hearing to be recessed until a time and
place certain without further notice if the time and place is announced
openly before the hearing is recessed.  Authorizes the hearing to be
recessed to a time and place certain by giving advance notice as required
by Chapter 2001, Government Code, if the time and place determined for
resumption of the hearing is not announced openly before the hearing is
recessed.  Requires the examiner, in all contested cases, to serve on all
parties a copy of the examiner's proposal for decision and recommended
order.  Authorizes the board to consider only the materials timely
submitted in its review of the case.  Makes conforming and standard
recodification changes. 

SECTION 15. Amends Section 3.09, Article 4413(36), V.T.C.S., as follows:

Sec.  3.09.  New heading: PROCEDURAL SUPREMACY.  Makes a standard
recodification change. 
 
SECTION 16. Amends Section 4.01, Article 4413(36), V.T.C.S., by amending
Subsection (b) and adding Subsections (c) and (d), to redefine "license."
Provides that, notwithstanding the terms of this Act, a franchised dealer
is not required to have a lessor license or lease facilitator license to
engage in any capacity in the business of leasing motor vehicles that the
dealer owns and is licensed by this Act to sell.  Provides that a
manufacturer or distributor that directly or indirectly reimburses another
person to perform warranty repair services on a vehicle is engaged in
business in this state whether or not the manufacturer sells or offers for
sale new motor vehicles in this state. 

SECTION 17. Amends Section 4.02(a), Article 4413(36), V.T.C.S., to make
conforming and standard recodification changes. 

SECTION 18. Amends Section 4.03A, Article 4413(36), V.T.C.S., to make
conforming and standard recodification changes. 

SECTION 19. Amends Section 4.05(a), Article 4413(36), V.T.C.S., to require
the annual license fee to be $100 for licenses issued for each location
separate from the person's dealership at which a franchised dealer offers
no motor vehicle for sale, but performs warranty service on vehicles the
dealer is franchised and licensed to sell.  Redesignates subsequent
subsections. 

SECTION 20. Amends Section 5.01, Article 4413(36), V.T.C.S., to make a
nonsubstantive change. 

SECTION 21. Amends Section 5.01A, Article 4413(36), V.T.C.S., to delete a
provision prohibiting a dealer from operating as a dealer without a
currently valid license or general distinguishing number issued by the
board.  Redesignates subsequent subsections. 

SECTION 22. Amends Section 5.02(b), Article 4413(36), V.T.C.S., to make
conforming changes. 

SECTION 23. Amends Section 6.02, Article 4413(36), V.T.C.S., to make
conforming changes. 

SECTION 24. Amends Section 6.03, Article 4413(36), V.T.C.S., to make
conforming changes. 

SECTION 25. Amends Sections 6.07(e), (g), and (j), Article 4413(36),
V.T.C.S., to make conforming and standard recodification changes. 

SECTION 26. Amends Sections 7.01(a), (c), and (d), Article 4413(36),
V.T.C.S., to make conforming and nonsubstantive changes. 

SECTION 27. (a) Authorizes a person who, on June 7, 1995, held both a
motor home dealer's license and a motor home manufacturer's license issued
pursuant to the terms of the Article 4413(36), V.T.C.S., to hold both a
motor home dealer's license and motor home manufacturer's license as those
terms are defined by Article 4413(36), V.T.C.S., notwithstanding the terms
of Section 5.02(b)(25), Article 4413(36), V.T.C.S.  

(b) Provides that Subsection (a) of this section authorizes a person to
operate as a manufacturer and a dealer of no vehicle or type of vehicle
except a motor home as that term is defined by Article 4413(36), V.T.C.S. 

SECTION 26. Emergency clause.
  Effective date: upon passage.