HBA-NRS H.B. 1665 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1665
By: Alexander
Transportation
2/27/2001
Introduced



BACKGROUND AND PURPOSE 

The Motor Vehicle Board of the Texas Department of Transportation (board)
is the state's licensor of manufacturers, distributors, dealers, lessors,
and lease facilitators. The board's power and authority is established
through the Texas Motor Vehicle Commission Code. Changes in the motor
vehicle industry have resulted in the need for certain parts of the code to
be updated virtually every session. House Bill 1665 makes language changes
in relation to the redesignation of the Texas Motor Vehicle Commission as
the board, modifications to duties and authority of the board, and
modifications to the regulation of the sale of motor vehicles. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Motor Vehicle Board of the Texas
Department of Transportation in SECTION 6 (Section 3.03, Texas Motor
Vehicle Commission Code, Article 4413(36), V.T.C.S.) and SECTION 8 (Section
4.01, Texas Motor Vehicle Commission Code, Article 4413(36), V.T.C.S.) of
this bill. 

ANALYSIS

House Bill 1665 amends the Texas Motor Vehicle Commission Code to
standardize references to the Motor Vehicle Board of the Texas Department
of Transportation (board). The bill clarifies and amends eligibility
requirements of those who are appointed to the board (Sec. 2.03).  

The bill provides that the board has specific authority to order parties to
perform certain acts necessary to implement the Texas Motor Vehicle
Commission Code. The bill also authorizes the board, rather than the Texas
Department of Transportation, to adopt rules applicable to procedures,
hearings, and enforcement proceedings in an action pursuant to hearings
involving dealer's and manufacturer's vehicle license plates (Sec. 3.03).
The bill provides that the board is not required to pay a filing fee when
filing a complaint or other enforcement action (Sec. 3.05). The bill
authorizes the board to issue a duplicate license for any license it
issues, to charge a fee of $50 for the issuance of a duplicate license, and
to adopt rules applicable to the issuance of a duplicate license (Secs.
4.01 and 4.05).  

The bill requires that each application for a motor vehicle manufacturer's
license include a statement regarding the manufacturer's compliance with
provisions relating to warranty reimbursement, procedures relating to
manufacturer or distributor incentive programs, and manufacturer or
distributor ownership, operation, or control of a dealership (Sec. 4.03).  

H.B. 1665 authorizes the board to deny an application for a license,
suspend or revoke an outstanding license, or place on probation or
reprimand a licensee who wilfully defrauds any buyer, not only a retail
buyer (Sec. 4.06). The bill modifies the method for determining the dealer
cost of new motor  vehicles that is used after the termination of a
contract between a franchised dealer and a manufacturer or distributor
(Sec. 5.02).  

The bill sets forth that a time limit relating to board proceedings imposed
on the board or on a dealer by  the terms of the Texas Motor Vehicle
Commission Code is tolled during the pendency of mandatory mediation
proceedings required by the code or by a franchise agreement (Sec. 5.02D). 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.