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.