By: Keough H.B. No. 385
A BILL TO BE ENTITLED
AN ACT
Re
lating to the requirement for a dealer general distinguishing
number for private sales of an automobile.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 503.024, Transportation Code, is amended
to read as follows:
EXCLUSIONS FOR DEALER. (a) A person is not required to
obtain a dealer general distinguishing number if the person:
(1) sells or offers to sell during a calendar year
fewer than twelve [five] vehicles of the same type that are owned
and registered in that person's name; or
(2) is a federal, state, or local governmental agency.
(b) For the purposes of Section 503.021, a person is not
engaging in business as a dealer by:
(1) selling or offering to sell a vehicle the person
acquired for personal or business use to a person other than a
retail buyer if the sale or offer is not made to avoid a requirement
of this chapter;
(2) selling, in a manner provided by law for the forced
sale of vehicles, a vehicle in which the person holds a security
interest;
(3) acting under a court order as a receiver, trustee,
administrator, executor, guardian, or other appointed person;
(4) selling a vehicle the person acquired from the
vehicle's owner as a result of paying an insurance claim if the
person is an insurance company;
(5) selling an antique passenger car or truck that is
at least 25 years of age; or
(6) selling a special interest vehicle that is at
least 12 years of age if the person is a collector.
(c) For the purposes of Section 503.021, a domiciliary of
another state who holds a dealer license and bond, if applicable,
issued by the other state is not engaging in business as a dealer by
buying a vehicle from, selling a vehicle to, or exchanging a vehicle
with a person who:
(1) holds a general distinguishing number issued by
the department, if the transaction is not intended to avoid a
requirement of this chapter; or
(2) is a domiciliary of another state who holds a
dealer license and bond, if applicable, issued by the other state
and the transaction is not intended to avoid a requirement of this
chapter.
(d) For the purposes of Section 503.021, a licensed
auctioneer is not engaging in business as a dealer by, as a bid
caller, selling or offering to sell property to the highest bidder
at a bona fide auction if:
(1) legal or equitable title does not pass to the
auctioneer;
(2) the auction is not held to avoid a requirement of
this chapter; and
(3) for an auction of vehicles owned legally or
equitably by a person who holds a general distinguishing number,
the auction is conducted at the location for which the general
distinguishing number was issued.
(e) In this section, "special interest vehicle" has the
meaning assigned by Section 683.077(b).
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.