SRC-DPW S.B. 1146 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1146
76R8999 DWS-DBy: Wentworth
State Affairs
4/19/1999
As Filed


DIGEST 

Currently, the Motor Vehicle Commission Code (Article 4413(36), V.T.C.S.)
requires any business acting as a motor vehicle dealer in Texas to obtain a
dealers' license, and prohibits a manufacturer from acting as a dealer.
Under a broad, literal interpretation, an out-of-state bus manufacturer
which sells buses to cities and transit systems in Texas, could be subject
to the licensing requirements of the code even though it does not act as a
dealer in Texas.  The maximum civil penalty for violating the code is
$10,000 for each day of violation and for each act of violation.  This bill
would exempt an out-of-state, licensed manufacturer of buses which sells
buses to cities and transit systems, but does not act as a dealer in Texas,
from the dealer licensing requirements of the code. 

PURPOSE

As proposed, S.B. 1146 exempts certain bus manufacturers from certain
regulations. 

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 Section 503.024(a), Transportation Code, to provide that
a person who sells buses manufactured by the person outside this state to
municipalities, transit authorities, and other governmental entities in
this state, is not required to obtain a dealer general distinguishing
number. 

SECTION 2. Amends Section 4.01, Article 4413(36), V.T.C.S. (Texas Motor
Vehicle Commission Code), by adding Subsection (e), to provide that this
Act does not apply to a person who sells buses manufactured by the person
outside this state to municipalities, transit authorities, and other
governmental entities in this state.  Effective date: 90 days after
adjournment.