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A BILL TO BE ENTITLED
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AN ACT
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Re |
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lating to the requirement for a dealer general distinguishing |
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number for private sales of an automobile. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 503.024, Transportation Code, is amended |
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to read as follows: |
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EXCLUSIONS FOR DEALER. (a) A person is not required to |
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obtain a dealer general distinguishing number if the person: |
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(1) sells or offers to sell during a calendar year |
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fewer than twelve [five] vehicles of the same type that are owned |
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and registered in that person's name; or |
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(2) is a federal, state, or local governmental agency. |
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(b) For the purposes of Section 503.021, a person is not |
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engaging in business as a dealer by: |
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(1) selling or offering to sell a vehicle the person |
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acquired for personal or business use to a person other than a |
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retail buyer if the sale or offer is not made to avoid a requirement |
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of this chapter; |
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(2) selling, in a manner provided by law for the forced |
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sale of vehicles, a vehicle in which the person holds a security |
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interest; |
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(3) acting under a court order as a receiver, trustee, |
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administrator, executor, guardian, or other appointed person; |
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(4) selling a vehicle the person acquired from the |
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vehicle's owner as a result of paying an insurance claim if the |
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person is an insurance company; |
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(5) selling an antique passenger car or truck that is |
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at least 25 years of age; or |
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(6) selling a special interest vehicle that is at |
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least 12 years of age if the person is a collector. |
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(c) For the purposes of Section 503.021, a domiciliary of |
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another state who holds a dealer license and bond, if applicable, |
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issued by the other state is not engaging in business as a dealer by |
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buying a vehicle from, selling a vehicle to, or exchanging a vehicle |
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with a person who: |
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(1) holds a general distinguishing number issued by |
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the department, if the transaction is not intended to avoid a |
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requirement of this chapter; or |
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(2) is a domiciliary of another state who holds a |
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dealer license and bond, if applicable, issued by the other state |
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and the transaction is not intended to avoid a requirement of this |
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chapter. |
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(d) For the purposes of Section 503.021, a licensed |
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auctioneer is not engaging in business as a dealer by, as a bid |
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caller, selling or offering to sell property to the highest bidder |
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at a bona fide auction if: |
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(1) legal or equitable title does not pass to the |
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auctioneer; |
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(2) the auction is not held to avoid a requirement of |
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this chapter; and |
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(3) for an auction of vehicles owned legally or |
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equitably by a person who holds a general distinguishing number, |
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the auction is conducted at the location for which the general |
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distinguishing number was issued. |
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(e) In this section, "special interest vehicle" has the |
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meaning assigned by Section 683.077(b). |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |