1-1     By:  Siebert (Senate Sponsor - Cain)                  H.B. No. 1473

 1-2           (In the Senate - Received from the House April 11, 1997;

 1-3     April 14, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 16, 1997, reported favorably by the following vote:

 1-5     Yeas 13, Nays 0; May 16, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the licensing and regulation of certain motor vehicle

 1-9     dealers.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 503.033(g), Transportation Code, is

1-12     amended to read as follows:

1-13           (g)  This section does not apply to a person licensed as a

1-14     franchised motor vehicle dealer by the department's Motor Vehicle

1-15     Board.

1-16           SECTION 2.  Section 503.036, Transportation Code, is amended

1-17     to read as follows:

1-18           Sec. 503.036.  REASSIGNMENT OF EVIDENCE OF OWNERSHIP; DEALER

1-19     CATEGORIES.  (a)  The holder of a franchised motor vehicle dealer's

1-20     general distinguishing number may buy, sell, or exchange new or

1-21     used motor vehicles and reassign a manufacturer's certificate of

1-22     origin, certificate of title, or other basic evidence of ownership

1-23     of any type of vehicle owned by the dealer that the dealer is not

1-24     otherwise prohibited by law from selling or offering for sale.

1-25           (b)  The holder of an independent motor vehicle dealer's

1-26     general distinguishing number may reassign a certificate of title

1-27     or other basic evidence of ownership of any type of vehicle owned

1-28     by the dealer that the dealer is not otherwise prohibited by law

1-29     from selling or offering for sale.

1-30           (c)  The holder of a wholesale motor vehicle dealer's general

1-31     distinguishing number may sell or offer to sell motor vehicles to

1-32     no person except:

1-33                 (1)  a person who holds a general distinguishing

1-34     number; or

1-35                 (2)  a person who is legally recognized as and duly

1-36     licensed or otherwise qualified as a dealer under the laws of

1-37     another state or foreign jurisdiction.  [A dealer may reassign any

1-38     basic evidence of ownership, including a manufacturer's certificate

1-39     of origin or a certificate of title, for a vehicle owned by the

1-40     dealer that the dealer is not otherwise prohibited by law from

1-41     selling only if the dealer:]

1-42                 [(1)  is licensed by the department's Motor Vehicle

1-43     Board; or]

1-44                 [(2)  has filed security as required by Section

1-45     503.033.]

1-46           SECTION 3.  The importance of this legislation and the

1-47     crowded condition of the calendars in both houses create an

1-48     emergency and an imperative public necessity that the

1-49     constitutional rule requiring bills to be read on three several

1-50     days in each house be suspended, and this rule is hereby suspended,

1-51     and that this Act take effect and be in force from and after its

1-52     passage, and it is so enacted.

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