BILL ANALYSIS

S.B. 1982

By: Kolkhorst

Licensing & Administrative Procedures

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties explain that wholesale motor vehicle auctions are held only for licensed motor vehicle dealers to buy and sell cars at auction. In Texas, a wholesale motor vehicle auction company must hold a general distinguishing number issued by the Texas Department of Motor Vehicles (TxDMV) and, in addition to this regulation, a Texas auction company is regulated as an auctioneer by the Texas Department of Licensing and Regulation (TDLR). The parties contend that this dual regulation of the state's wholesale auto auction industry by TxDMV and TDLR seems redundant. S.B. 1982 seeks to amend current law to address this issue.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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

S.B. 1982 amends the Occupations Code to exempt from statutory provisions governing auctioneers a sale of motor vehicles at auction by a person licensed under statutory provisions relating to the sale or lease of motor vehicles or under statutory provisions relating to salvage vehicle dealers and a sale of motor vehicles at auction by a person who holds a wholesale motor vehicle auction general distinguishing number or an independent motor vehicle general distinguishing number issued by the Texas Department of Motor Vehicles (TxDMV). The bill authorizes a licensed auctioneer to conduct an auction to sell motor vehicles for a person who holds a wholesale motor vehicle auction general distinguishing number issued by TxDMV or a salvage vehicle dealer or salvage vehicle agent license.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2015.