C.S.H.B. 8 78(1)    BILL ANALYSIS


C.S.H.B. 8
By: Krusee
Transportation
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

C.S.H.B. 8 78(1)Chapter 2301 of the Occupations Code imposes licensing
requirements on, and regulates the relations between and among, motor
vehicle manufacturers, distributers, dealers, lessors, and lease
facilitators.  C.S.H.B. 8  provides conforming and corrective amendments
to Chapter 2301, Occupations Code. 

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. 

ANALYSIS

SECTION 1.Section 2301.002, Occupations Code, is amended by amending
Subdivisions (6), (16), and (23), as amended by House Bill 3507, Acts of
the 78th Legislature, Regular Session, 2003, amending Subdivision (32),
and adding Subdivisions (1a) and (14-a). 
One purpose of CSHB 8 is to provide conforming changes to Section 2301 of
the Occupations Code and move Section 2301.252, the definitions of
"ambulance manufacturer" and "fire-fighting vehicle manufacturer" to
Section 2301.002 of the  Occupations Code, which is the appropriate
section for definitions. 

SECTION 2.Amends Section 2301.153 (a), Occupations Code, to add
Subdivision (10) to provide that, notwithstanding any other law, the Motor
Vehicle Board (MVB) of the Texas Department of Transportation has all
powers necessary, incidental, or convenient to perform a power or duty
expressly granted under this chapter, including the power to, with the
prior approval of the MVB, accept a donation or contribution of property
or services to be used by MVB or its staff in the execution of its legal
duties.  Redesignates Subdivisions (10)-(20) as (11)-(21). 

SECTION 3.Subchapter D, Chapter 2301, Occupations Code, is amended by
adding Section 2301.161 as the Public Information Exception.
Notwithstanding any other law or rule and except as provided by
Subsections (c) and (d), this section of CSHB 8 includes the information
on file with the board relating to a person is confidential and not
subject to disclosure under Chapter 552, Government Code, regardless of
whether the person resides in this state. Subsections (c) and (d) state
the instances where information is excepted from disclosure. 
Another purpose of CSHB 8 was to clarify the public information section of
the bill and the language was provided by the Texas Department of
Transportation upon the request of the Subcommittee in order to address
the concerns of the groups at the committee hearing. 

SECTION 4.Amends Section 2301.251 (a), Occupations Code, to make a
conforming change. 

SECTION 5. Section 2301.252 (b), Occupations Code, as amended by House
Bill 3507, Acts of the 78th Legislature, Regular Session, 2003, is amended
to provide that for the purposes of this section, the make of an ambulance
is that of the ambulance manufacturer, and the make of a fire-fighting
vehicle is that of the fire-fighting  vehicle manufacturer. 

SECTION 6.Amends Section 2301.301 (c), Occupations Code, to exempt the fee
required in conjunction with an application to relocate a franchised
dealership within the city limits of the city in which the dealership is
located from the requirement that the fee for a license is prorated. 

SECTION 7.Amends Section 2301.705 (b), Occupations Code, to require notice
to a person outside the United States to be given by registered mail,
return requested, or by a private carrier who offers confirmation of
delivery. 

SECTION 8.Section 2301.803, Occupations Code, is transferred to Subchapter
O, Chapter 2301, Occupations Code, and renumbered as Section 2301.7075,
Occupations Code. 
 
SECTION 9.Subsection (c), Section 2301.7075, Occupations Code, as
renumbered  from Section 2301.803, Occupations Code, by this Act, is
amended to say that a person affected by a statutory stay imposed by this
chapter may request a hearing to modify, vacate, or clarify the extent and
application of the statutory stay. 
With respect to the discussions during the committee hearing, the language
was provided to clarify that a request for a hearing on a statutory stay
is not a separate proceeding from the one in which the stay is in effect. 

SECTION 10.The timeline for the act to take effect.

EFFECTIVE DATE

November 1, 2003.

COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 1. CSHB 8 differed from the original in that CSHB 8 provided
conforming changes to Section 2301 of the Occupations Code and moved
Section 2301.252, the definitions of "ambulance manufacturer" and
"fire-fighting vehicle manufacturer" to Section 2301.002 of the
Occupations Code, which is the appropriate section for definitions. 

SECTION 3.CSHB 8 additionally differed from the original in that CSHB 8
clarified the public information section of the bill and language was
provided by the Texas Department of Transportation upon the request of the
Subcommittee in order to address the concerns of the groups at the
committee hearing. 

SECTION 9.CSHB 8 additionally differed from the original in that  language
was provided to clarify that a request for a hearing on a statutory stay
is not a separate proceeding from the one in which the stay is in effect.
Section 8 of this Bill transfers this language to another section of the
Occupations Code and then Section 9 of this Bill amends the section of the
Occupations Code to clarify the process of requesting a hearing of a
statutory stay. 

Section 2301.267, Occupations Code, that authorizes a period of unlicensed
operation of a dealership was removed from the Bill.  There have been
experiences where some manufacturers take the position that a vehicle sold
by someone who is not franchised and licensed is not covered by their
warranty.