HBA-NLM, ALS, RAR H.B. 800 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 800
By: Uher
Transportation
4/8/1999
Introduced



BACKGROUND AND PURPOSE
 
Chapter 791 (Interlocal Cooperation Act), Government Code, authorizes one
or more local governments to agree with another local government or with
the state or a state agency to purchase goods and services.  There are
concerns surrounding allegations made by the Motor Vehicle Board of the
Texas Department of Transportation (board), that any such local government,
administrative agency or state agency, purchasing a motor vehicle on behalf
of another local government, is operating without a license issued by the
board.  The board also alleges these entities may be violating state law by
the virtue of such activity.   

H.B. 800 provides that a local government, including a council of
governments or a state agency that purchases a motor vehicle under an
interlocal contract on behalf of a contracting party, is not a broker,
converter, distributor, franchised or nonfranchised dealer, lease
facilitator, lessor, manufacturer, or representative as defined by the
Texas Motor Vehicle Commission Code, and is not subject to the licensing
requirements of that code. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 791.025, Government Code, to provide that a
local government, including a council of governments or a state agency that
purchases a motor vehicle under an interlocal contract on behalf of a
contracting party is not a broker, converter, distributor, franchised or
nonfranchised dealer, lease facilitator, lessor, manufacturer, or
representative as defined by Section 1.03, Texas Motor Vehicle Commission
Code, Article 4413(36), V.T.C.S., and is not subject to the licensing
requirements of Subchapter D, Texas Motor Vehicle Commission Code, Article
4413(36), V.T.C.S.  Creates Subsection (d) from existing text.
Redesignates existing Subsection (d) 
to Subsection (e).

SECTION 2.  Emergency clause.
  Effective date: 90 days after adjournment.