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A BILL TO BE ENTITLED
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AN ACT
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relating to the location for which a wholesale motor vehicle dealer |
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general distinguishing number may be issued. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 503.027, Transportation Code, is amended |
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by adding Subsection (c) to read as follows: |
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(c) A rule adopted by the board relating to a dealer |
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location, including the classification of a location as an |
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established and permanent place of business, may not: |
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(1) require that the dealer display an interior or |
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exterior sign at a location that is a residential location |
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described by Section 503.032(b)(2); or |
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(2) prohibit a wholesale motor vehicle dealer from |
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being located in the same building as a retail dealer, except that a |
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rule may prohibit a wholesale motor vehicle dealer from being |
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located in the same office space as a retail dealer. |
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SECTION 2. Sections 503.032(a) and (b), Transportation |
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Code, are amended to read as follows: |
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(a) An applicant for a dealer general distinguishing number |
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or wholesale motor vehicle auction general distinguishing number |
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must demonstrate that the location for which the applicant requests |
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the number is an established and permanent place of business. |
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Except as provided by Subsection (b), a [A] location is considered |
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to be an established and permanent place of business if the |
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applicant: |
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(1) owns the real property on which the business is |
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situated or has a written lease for the property that has a term of |
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not less than the term of the general distinguishing number; |
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(2) maintains on the location: |
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(A) a permanent furnished office that is equipped |
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as required by the department for the sale of the vehicles of the |
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type specified in the application; and |
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(B) a conspicuous sign with letters at least six |
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inches high showing the name of the applicant's business; and |
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(3) has sufficient space on the location to display at |
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least five vehicles of the type specified in the application. |
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(b) A location for which a wholesale motor vehicle dealer is |
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applying [An applicant] for a general distinguishing number is |
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considered to be an established and permanent place of business if |
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the location: |
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(1) satisfies the requirements of Subsection (a), |
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except that the location [as a wholesale motor vehicle dealer] is |
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not required to have [maintain] display space as described by [in |
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accordance with] Subsection (a)(3); or |
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(2) is a residential location equipped with: |
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(A) Internet access; and |
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(B) a working telephone number listed in the |
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business name or assumed name under which the dealer conducts |
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business. |
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SECTION 3. Section 503.032, Transportation Code, as amended |
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by this Act, applies only to an application for an initial or |
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renewal wholesale motor vehicle dealer general distinguishing |
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number submitted on or after the effective date of this Act. An |
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application for an initial or renewal wholesale motor vehicle |
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dealer general distinguishing number submitted before the |
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effective date of this Act is governed by the law in effect on the |
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date the application was submitted, and the former law is continued |
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in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2023. |