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.