TWT H.B. 2098 75(R)BILL ANALYSIS


TRANSPORTATION
H.B. 2098
By: Uher
4-5-97
Committee Report (Unamended)



BACKGROUND 

The 74th Legislature in SB 921 created authority for the regulation of the
automobile leasing business by requiring licensing of all elements of the
business and prohibited unlicensed lease brokers from participating in the
automobile leasing business. Regulatory authority was placed in the Motor
Vehicle Division of the Texas Department of Transportation (TxDOT). 

PURPOSE

This bill clarifies that licensed franchise automobile dealers do not have
to acquire an additional license to engage in the automobile leasing
business and that normal business transactions between licensed parties do
not violate the statute. 

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 4.01(a),  Texas Motor Vehicle Commission Code
(Article 4413(36), Vernon's Texas Civil Statutes) by setting forth that a
licensed franchise automobile dealer is not required to obtain  a lessor's
license or lease facilitator license under the Act. 

SECTION 2. Amends Section 5.01, Texas Motor Vehicle Commission Code
(Article 4413(36), Vernon's Texas Civil Statutes), as amended by Chapters
345 and 357, Acts of the 74th Legislature, Regular Session, 1995, by
clarifying in Subsection (5) that the terms or considerations in the sale
or assignment of leases or leased vehicles by a licensed dealer to a
licensed person do not violate this Act. 

SECTION 3. Amends Section 5.03A, Texas Motor Vehicle Code (Article
4413(36), V.T.C.S.) by adding Subsection (f) to make clear the terms or
considerations in the sale or assignment of leases or leased vehicle by a
licensed dealer to a licensed person do not violate this Act. 

SECTION 4. Effective date -- September 1. 1997.

SECTION 5. Emergency clause.