H.B. No. 2216

AN ACT

relating to the regulation of the sale of certain mobility motor vehicles equipped to transport a person with a disability.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2301.002, Occupations Code, is amended by amending Subdivision (25) and adding Subdivisions (17-a), (20-a), and (23-a) to read as follows:

(17-a) "Independent mobility motor vehicle dealer" means a nonfranchised dealer who:

(A) holds a general distinguishing number issued by the board under Chapter 503, Transportation Code;

(B) holds a converter's license issued under this chapter;

(C) is engaged in the business of buying, selling, or exchanging mobility motor vehicles and servicing or repairing the devices installed on mobility motor vehicles at an established and permanent place of business in this state; and

(D) is certified by the manufacturer of each mobility device that the dealer installs, if the manufacturer offers that certification.

(20-a) "Mobility motor vehicle" means a motor vehicle that is designed and equipped to transport a person with a disability and that:

(A) has a chassis that contains:

(i) a permanently lowered floor or lowered frame; or

(ii) a permanently raised roof and raised door;

(B) contains at least one of the following:

(i) an electronic or mechanical wheelchair, scooter, or platform lift that enables a person to enter or exit the vehicle while occupying a wheelchair or scooter;

(ii) an electronic or mechanical wheelchair ramp; or

(iii) a system to secure a wheelchair or scooter to allow for a person to be safely transported while occupying the wheelchair or scooter; and

(C) is installed as an integral part or permanent attachment to the motor vehicle's chassis.

(23-a) "New mobility motor vehicle" means a mobility motor vehicle that has not been the subject of a retail sale, regardless of the mobility motor vehicle's mileage.

(25) "Nonfranchised dealer" means a person who holds an independent motor vehicle dealer's general distinguishing number, an independent mobility motor vehicle dealer's general distinguishing number, or a wholesale motor vehicle dealer's general distinguishing number issued by the board under Chapter 503, Transportation Code.

SECTION 2. Subchapter H, Chapter 2301, Occupations Code, is amended by adding Section 2301.361 to read as follows:

Sec. 2301.361. INDEPENDENT MOBILITY MOTOR VEHICLE DEALER. (a) Notwithstanding any other law or rule, an independent mobility motor vehicle dealer may:

(1) purchase or otherwise acquire a new motor vehicle with a lowered floor or frame or a raised roof and door to fit or equip the motor vehicle for retail sale as a mobility motor vehicle;

(2) display a new mobility motor vehicle to a person with a disability to fit or equip the vehicle as a mobility motor vehicle for the person; and

(3) sell or arrange for the sale and delivery of a new mobility motor vehicle to a purchaser at the independent mobility motor vehicle dealer's place of business if the transaction occurs through or by a franchised dealer of the motor vehicle's chassis line make.

(b) An independent mobility motor vehicle dealer who purchased or acquired a new motor vehicle from a franchised dealer to equip the vehicle as a mobility motor vehicle may not advertise the vehicle for sale until the vehicle is fitted or equipped as a mobility motor vehicle.

(c) An independent mobility motor vehicle dealer may not sell or offer to sell a new motor vehicle other than a new mobility motor vehicle.

SECTION 3. Section 503.001, Transportation Code, is amended by amending Subdivisions (4) and (9) and adding Subdivision (8-a) to read as follows:

(4) "Dealer" means a person who regularly and actively buys, sells, or exchanges vehicles at an established and permanent location. The term includes a franchised motor vehicle dealer, an independent motor vehicle dealer, an independent mobility motor vehicle dealer, and a wholesale motor vehicle dealer.

(8-a) "Independent mobility motor vehicle dealer" has the meaning assigned by Section 2301.002, Occupations Code.

(9) "Independent motor vehicle dealer" means a dealer other than a franchised motor vehicle dealer, an independent mobility motor vehicle dealer, or a wholesale motor vehicle dealer.

SECTION 4. Section 503.021, Transportation Code, is amended to read as follows:

Sec. 503.021. DEALER GENERAL DISTINGUISHING NUMBER. A person may not engage in business as a dealer, directly or indirectly, including by consignment, without a dealer general distinguishing number in one of the [six] categories described by Section 503.029(a)(6) for each location from which the person conducts business as a dealer.

SECTION 5. Section 503.029(a), Transportation Code, is amended to read as follows:

(a) An applicant for an original or renewal dealer general distinguishing number must submit to the department a written application on a form that:

(1) is provided by the department;

(2) contains the information required by the department;

(3) contains information that demonstrates the person meets the requirements prescribed by Section 503.032;

(4) contains information that demonstrates the applicant has complied with all applicable state laws and municipal ordinances;

(5) states that the applicant agrees to allow the department to examine during working hours the ownership papers for each registered or unregistered vehicle in the applicant's possession or control; and

(6) specifies whether the applicant proposes to be a:

(A) franchised motor vehicle dealer;

(B) independent motor vehicle dealer;

(C) wholesale motor vehicle dealer;

(D) motorcycle dealer;

(E) house trailer dealer; [or]

(F) trailer or semitrailer dealer; or

(G) independent mobility motor vehicle dealer.

SECTION 6. Subchapter B, Chapter 503, Transportation Code, is amended by adding Section 503.0295 to read as follows:

Sec. 503.0295. INDEPENDENT MOBILITY MOTOR VEHICLE DEALERS. A person who seeks to act as an independent mobility motor vehicle dealer shall provide with each application for a general distinguishing number and each renewal application:

(1) a written statement that the dealer:

(A) shall maintain written records until at least the third anniversary of the date that adaptive work is performed; and

(B) agrees to comply with Chapter 469, Government Code; and

(2) proof that the person:

(A) maintains a garagekeeper's insurance policy in an amount of at least $50,000 and a products-completed operations insurance policy in an amount of at least $1 million per occurrence and in the aggregate;

(B) holds a welder's certification, or that the person's approved subcontractor holds a certificate, that complies with the standards of the American Welding Society Sections D1.1 and D1.3, if the person or subcontractor will perform any structural modifications; and

(C) is registered with the National Highway Traffic and Safety Administration.

SECTION 7. Section 503.036(b), Transportation Code, is amended to read as follows:

(b) The holder of an independent motor vehicle dealer's general distinguishing number or an independent mobility motor vehicle dealer's general distinguishing number may reassign a certificate of title or other basic evidence of ownership of any type of vehicle owned by the dealer that the dealer is not otherwise prohibited by law from selling or offering for sale.

SECTION 8. 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, 2007.

______________________________ ______________________________

President of the Senate Speaker of the House

I certify that H.B. No. 2216 was passed by the House on May 10, 2007, by the following vote: Yeas 142, Nays 1, 3 present, not voting.

______________________________ Chief Clerk of the House

I certify that H.B. No. 2216 was passed by the Senate on May 21, 2007, by the following vote: Yeas 31, Nays 0.

______________________________ Secretary of the Senate APPROVED: _____________________

Date

_____________________

Governor