SRC-AMY H.B. 1076 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1076
By: McCall (Shapiro)
Business & Commerce
5/2/2003
Engrossed


DIGEST AND PURPOSE 

Currently, a rental car company owned by a vehicle manufacturer is
prohibited from being licensed as a used car dealer by the Texas Motor
Vehicle Board.  Prior to 1999, rental car companies were licensed in Texas
to sell used vehicles.  H.B. 1076 authorizes a rental car company that is
a manufacturer or distributor to sell used vehicles if the primary
business of the company is renting commercial or passenger vehicles and it
sells only certain vehicles. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2301.476, Occupations Code, by adding
Subsection (i) to authorize a manufacturer or distributor, notwithstanding
the terms of this chapter and subject to the limitations set forth in this
subsection, to own an interest in an entity that holds a general
distinguishing number if the entity is primarily engaged in renting
passenger or commercial vehicles that the entity owns to other persons,
and sells or offers for sale only certain vehicles. 

SECTION 2.  Effective date:  upon passage or September 1, 2003.