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