SRC-MAX C.S.S.B. 946 75(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 946
By: Patterson
State Affairs
3-31-97
Committee Report (Substituted)


DIGEST 

Currently, a person is prohibited from operating a vehicle storage
facility unless the person holds a current license to operate a vehicle
storage facility issued to the person by the Texas Department of
Transportation (TxDOT).  Recently, motor vehicle dealerships have chosen
to sub-contract with other entities when storing vehicles.  This bill
prohibits a person from operating a vehicle storage facility for the
storage of vehicles owned by a motor vehicle dealer unless the person
holds a current license issued by TxDOT.  

PURPOSE

As proposed, C.S.S.B. 946 requires certain persons to obtain a vehicle
storage facility license. 

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 Sections 3 and 5, Article 6687-9a, V.T.C.S. (Vehicle
Storage Facility Act), to provide that this article does not apply to a
vehicle parked or stored at a vehicle storage facility with the consent of
the vehicle's owner.  Provides that this article does not apply to a
vehicle storage facility owned, rather than operated, by a person licensed
pursuant to the Texas Motor Vehicle Commission Code.  Prohibits a person
other than the owner of a vehicle storage facility from operating a
vehicle storage facility owned by a motor vehicle dealer unless the person
holds a current license to operate a vehicle storage facility issued to
the person by the Texas Department of Transportation.  Provides that the
licensing requirement imposed by this subsection applies only to a person
who operates a vehicle storage facility pursuant to the terms of an
enforceable contract by which the motor vehicle dealer who owns the
vehicle storage facility has conveyed to the contract operator all
authority to manage the vehicle storage facility.  Defines "motor vehicle
dealer."  

SECTION 2. (a)  Effective date:  September 1, 1997.

(b)  Provides that a person that operates a storage facility for vehicles
owned by a motor vehicle dealer is not required to obtain a vehicle
storage license under Section 5(b), Article 6687-9a, V.T.C.S., as added by
this Act, until January 1, 1998.  

SECTION 3. Emergency clause.
  Effective date:  upon passage.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Adds a provision to Section 3, Article 6687-9a, to provide that this
article does not apply to a vehicle parked or stored at a vehicle storage
facility with the consent of the vehicle's owner. Provides that this
article does not apply to a vehicle storage facility owned, rather than
operated, by a person licensed pursuant to the Texas Motor Vehicle
Commission Code. Adds a provisions in Section 5, Article 6687-9a, to
prohibit a person other than the owner  of a vehicle storage facility,
rather than a person, from operating a vehicle storage facility owned by a
motor vehicle dealer under certain conditions.  Adds text providing that
the licensing requirement imposed by this subsection applies only to a
person who operates a vehicle storage facility pursuant to the terms of an
enforceable contract by which the motor vehicle dealer who owns the
vehicle storage facility has conveyed to the contract operator all
authority to manage the vehicle storage facility.   

SECTION 3.

Provides that the effective date occurs upon passage of this Act.