By:  Whitmire                                                     S.B. No. 1347


A BILL TO BE ENTITLED

AN ACT

relating to motor vehicle title in dealer auctions.                           
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Amend Section 501.071(a), Transportation Code, 
as follows:       
	(a)  A motor vehicle may not be the subject of a subsequent 
sale unless:
		(1)  the owner designated in the certificate of title 
transfers the certificate of title at the time of the sale, or
		(2)  the motor vehicle is sold at auction by a person 
who holds a dealer general distinguishing number, legal title 
passes to the seller prior to any transfer of title to the buyer and 
the seller transfers certificate of title to the buyer within 5 days 
after the sale.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.