Bill Text: TX HB3533 | 2021-2022 | 87th Legislature | Enrolled


Bill Title: Relating to the security requirement for the issuance or renewal of a motor vehicle dealer general distinguishing number or a wholesale motor vehicle auction general distinguishing number.

Spectrum: Bipartisan Bill

Status: (Passed) 2021-06-14 - Effective on 9/1/21 [HB3533 Detail]

Download: Texas-2021-HB3533-Enrolled.html
 
 
  H.B. No. 3533
 
 
 
 
AN ACT
  relating to the security requirement for the issuance or renewal of
  a motor vehicle dealer general distinguishing number or a wholesale
  motor vehicle auction general distinguishing number.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 503.033, Transportation Code, is amended
  by amending Subsections (a), (d), and (g) and adding Subsections
  (h) and (i) to read as follows:
         (a)  The department may not issue or renew a motor vehicle
  dealer general distinguishing number or a wholesale motor vehicle
  auction general distinguishing number unless the applicant
  provides to the department[:
               [(1)] satisfactory proof that the applicant has
  purchased a properly executed surety bond in the amount of $50,000
  [$25,000] with a good and sufficient surety approved by the
  department[; or
               [(2) other security under Subsection (c)].
         (d)  A person may recover against a surety bond [or other
  security] if the person obtains against a person issued a motor
  vehicle dealer general distinguishing number or a wholesale motor
  vehicle auction general distinguishing number a judgment assessing
  damages and reasonable attorney's fees based on an act or omission
  on which the bond is conditioned that occurred during the term for
  which the general distinguishing number was valid.
         (g)  A dealer shall post, adjacent to and in the same manner
  as the dealer's general distinguishing number is posted, notice of
  the surety bond and the procedure by which a claimant may recover
  against the surety bond. The department by rule may prescribe the
  form of the notice required under this subsection.
         (h)  The department shall publish on the department's
  Internet website:
               (1)  the procedure by which a claimant may recover
  against a surety bond; and
               (2)  the department's contact information.
         (i)  This section does not apply to a person licensed as a
  franchised motor vehicle dealer by the department.
         SECTION 2.  Section 503.033(a), Transportation Code, as
  amended by this Act, applies only to an application for the issuance
  or renewal of a motor vehicle dealer general distinguishing number
  or a wholesale motor vehicle auction general distinguishing number
  submitted on or after the effective date of this Act. An
  application submitted before the effective date of this Act is
  governed by the law in effect on the date the application was
  submitted, and the former law is continued in effect for that
  purpose.
         SECTION 3.  This Act takes effect September 1, 2021.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3533 was passed by the House on May
  14, 2021, by the following vote:  Yeas 124, Nays 21, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 3533 was passed by the Senate on May
  21, 2021, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor       
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