SRC-JEC S.B. 1504 78(R)BILL ANALYSIS


Senate Research CenterS.B. 1504
By: Harris
Infrastructure Development and Security
6/24/2003
Enrolled


DIGEST AND PURPOSE 

Chapter 2301 of the Occupations Code imposes licensing requirements on,
and regulates the relations between and among, motor vehicle
manufacturers, distributors, dealers, lessors, and lease facilitators.
S.B. 1504 provides conforming and corrective amendments to Chapter 2301,
Occupations Code. 

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 Subdivisions (6) and (16), Section 2301.002,
Occupations Code, as follows: 

(6)  Redefines "converter."

(16)  Redefines "franchised dealer."

SECTION 2.  Amends Subdivision (23), Section 2301.002, Occupations Code,
to more closely conform to the law from which it was derived, and further,
to redefine "motor vehicle." 

SECTION 3.  Amends Subdivision (32), Section 2301.002, Occupations Code,
to redefine "towable recreational vehicle." 

SECTION 4.  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 accept a
donation, including a contribution of property or services.  Redesignates
Subdivisions (10) - (21) as (11) - (22). 

SECTION 5.  Amends Subchapter D, Chapter 2301, Occupations Code, by adding
Section 2301.161, as follows: 

Sec. 2301.161.  CONFIDENTIALITY OF INFORMATION RELATING TO LICENSE HOLDERS
AND APPLICANTS.  (a)  Provides that information contained in an
application for a license under this chapter and other information
relating to a license holder or license applicant that is on file with MVB
is confidential and not open to public inspection. 

(b)  Authorizes information made confidential by this section to be
disclosed in a judicial or administrative proceeding in accordance with a
lawful subpoena. 

SECTION 6.  Amends Section 2301.251(a), Occupations Code, to include an
exception as provided by this subchapter. 

 SECTION 7.  Amends Section 2301.252, Occupations Code, by amending
Subsection (b) and adding Subsection (c), as follows: 

(b)  Provides that for 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. 

(c)  Defines "ambulance manufacturer" and "fire-fighting vehicle
manufacturer." 

SECTION 8.  Amends Subchapter F, Chapter 2301, Occupations Code, by adding
Section 2301.267, as follows: 

Sec. 2301.267.  TEMPORARY OPERATION OF DEALERSHIP WITH PENDING
APPLICATION.  (a)  Authorizes a person to engage in the business of
operating a dealership for which the person's license application is
pending if the person meets the requirements of this section. 

(b)  Sets forth criteria for a person to qualify for this exception.

(c)  Provides that this section does not affect MVB's right to deny the
application. 

SECTION  9.  Amends Section 2301.301(c), Occupations Code, to except the
fee required for an application to relocate a dealership in a municipality
in which the dealership is located from the requirement that the fee for a
license be prorated. 

SECTION  10.  Amends Section 2301.476, Occupations Code, by adding
Subsection (i), to authorize a manufacturer or distributor to own an
interest in a dealer who has certain characteristics. 

SECTION  11.  Amends Section 2301.705(b), Occupations Code, to require
notice to be given by certified mail, return receipt requested, unless the
person to whom notice is given resides outside the United States.
Requires notice to a person outside the United States to be given by
registered mail, return receipt requested, or by a private carrier who
offers confirmation of delivery. 

SECTION  12.  Amends Section 2301.803(c), Occupations Code, to authorize a
person affected by a statutory stay imposed by this chapter to request a
hearing before the entity that imposed the stay, rather than initiate a
proceeding before MVB, to modify, vacate, or clarify the extent and
application of the statutory stay. 

SECTION 13.  (a)  Provides that, in accordance with Section 311.031(c),
Government Code, which gives effect to a substantive amendment enacted by
the same legislature that codifies the amended statute, certain textual
modifications set out in this Act give effect to changes made by Chapter
155, Acts of the 77th Legislature, Regular Session, 2001. 

(b)  Provides that, to the extent of any conflict, this Act prevails over
another Act of the 78th Legislature, Regular Session, 2003, relating to
nonsubstantive additions and corrections in enacted codes. 

SECTION 14.  Effective date:  September 1, 2003.