By: Huffman  S.B. No. 1827
         (In the Senate - Filed March 11, 2009; March 20, 2009, read
  first time and referred to Committee on Transportation and Homeland
  Security; March 31, 2009, reported favorably by the following
  vote:  Yeas 8, Nays 0; March 31, 2009, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the private disposition of used motor vehicles at
  certain auto auctions conducted by independent motor vehicle
  dealers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 503, Transportation Code,
  is amended by adding Section 503.040 to read as follows:
         Sec. 503.040.  PRIVATE DISPOSITION OF COLLATERAL BY AUTO
  AUCTION. The sale by a secured party acting under Chapter 9,
  Business & Commerce Code, of collateral consisting of a used motor
  vehicle at an auction conducted by an independent motor vehicle
  dealer constitutes a private disposition under that chapter for all
  purposes if:
               (1)  neither the debtor nor the secured party is
  permitted to bid on the vehicle; and
               (2)  there is no advertisement or public notice
  preceding the sale that specifically describes the collateral other
  than inclusion of the vehicle in a list of used motor vehicles being
  offered for sale at the auction that is made available to potential
  bidders prior to the sale.
         SECTION 2.  The change in law made by Section 503.040,
  Transportation Code, as added by this Act, applies only to a sale of
  collateral that occurs on or after the effective date of this Act.
  A sale that occurs before the effective date of this Act is governed
  by the law applicable to the sale immediately before the effective
  date of this Act, and that law is continued in effect for that
  purpose.
         SECTION 3.  This Act takes effect September 1, 2009.
 
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