1-1                                   AN ACT

 1-2     relating to the licensing and regulation of certain motor vehicle

 1-3     dealers.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 503.033(g), Transportation Code, is

 1-6     amended to read as follows:

 1-7           (g)  This section does not apply to a person licensed as a

 1-8     franchised motor vehicle dealer by the department's Motor Vehicle

 1-9     Board.

1-10           SECTION 2.  Section 503.036, Transportation Code, is amended

1-11     to read as follows:

1-12           Sec. 503.036.  REASSIGNMENT OF EVIDENCE OF OWNERSHIP; DEALER

1-13     CATEGORIES.  (a)  The holder of a franchised motor vehicle dealer's

1-14     general distinguishing number may buy, sell, or exchange new or

1-15     used motor vehicles and reassign a manufacturer's certificate of

1-16     origin, certificate of title, or other basic evidence of ownership

1-17     of any type of vehicle owned by the dealer that the dealer is not

1-18     otherwise prohibited by law from selling or offering for sale.

1-19           (b)  The holder of an independent motor vehicle dealer's

1-20     general distinguishing number may reassign a certificate of title

1-21     or other basic evidence of ownership of any type of vehicle owned

1-22     by the dealer that the dealer is not otherwise prohibited by law

1-23     from selling or offering for sale.

1-24           (c)  The holder of a wholesale motor vehicle dealer's general

 2-1     distinguishing number may sell or offer to sell motor vehicles to

 2-2     no person except:

 2-3                 (1)  a person who holds a general distinguishing

 2-4     number; or

 2-5                 (2)  a person who is legally recognized as and duly

 2-6     licensed or otherwise qualified as a dealer under the laws of

 2-7     another state or foreign jurisdiction.  [A dealer may reassign any

 2-8     basic evidence of ownership, including a manufacturer's certificate

 2-9     of origin or a certificate of title, for a vehicle owned by the

2-10     dealer that the dealer is not otherwise prohibited by law from

2-11     selling only if the dealer:]

2-12                 [(1)  is licensed by the department's Motor Vehicle

2-13     Board; or]

2-14                 [(2)  has filed security as required by Section

2-15     503.033.]

2-16           SECTION 3.  The importance of this legislation and the

2-17     crowded condition of the calendars in both houses create an

2-18     emergency and an imperative public necessity that the

2-19     constitutional rule requiring bills to be read on three several

2-20     days in each house be suspended, and this rule is hereby suspended,

2-21     and that this Act take effect and be in force from and after its

2-22     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1473 was passed by the House on April

         10, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1473 was passed by the Senate on May

         26, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor