| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the ownership or operation of a motor vehicle |
|
|
dealership by a manufacturer or distributor of motor vehicles |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 2301.252(a), Occupations Code, is |
|
|
amended to read as follows: |
|
|
(a) A person may not engage in the business of buying, |
|
|
selling, or exchanging new motor vehicles unless the person: |
|
|
(1) holds a franchised dealer's license issued under |
|
|
this chapter for the make of new motor vehicle being bought, sold, |
|
|
or exchanged[;] or |
|
|
[(2)] is a bona fide employee of the holder of a |
|
|
franchised dealer's license; or |
|
|
(2) is a manufacturer or distributor described by |
|
|
Section 2301.476(i-1) or is a bona fide employee of the |
|
|
manufacturer or distributor. |
|
|
SECTION 2. Section 2301.476, Occupations Code, is amended |
|
|
by adding Subsection (i-1) to read as follows: |
|
|
(i-1) Notwithstanding any other provision of this chapter, |
|
|
a manufacturer or distributor may own or operate a dealership, may |
|
|
own, operate, or otherwise act in the capacity of a dealer, and may |
|
|
obtain a dealer general distinguishing number if: |
|
|
(1) the manufacturer or distributor manufactures or |
|
|
distributes motor vehicles powered only by electricity or battery; |
|
|
and |
|
|
(2) the manufacturer's line-make has never been sold |
|
|
in this state through an independent franchised new motor vehicle |
|
|
dealership. |
|
|
SECTION 3. 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; |
|
|
(F) trailer or semitrailer dealer; [or] |
|
|
(G) independent mobility motor vehicle dealer; |
|
|
or |
|
|
(H) manufacturer or distributor described by |
|
|
Section 2301.476(i-1), Occupations Code. |
|
|
SECTION 4. This Act takes effect September 1, 2021. |