By Alexander H.B. No. 1828
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of certain motor vehicle dealers and to
1-3 the sale, titling, and registration of certain motor vehicles.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 6686(a)(1-A)(ii), Revised Statutes, is
1-6 amended to read as follows:
1-7 (ii) In this Article <subsection> "dealer" means a person
1-8 regularly and actively engaged in the business of buying, selling,
1-9 or exchanging (1) motor vehicles, (2) motorcycles, (3) house
1-10 trailers, or (4) trailers or semitrailers.
1-11 SECTION 2. Article 6686(a)(1-A), Revised Statutes, is
1-12 amended by inserting new Subdivisions (iii), (iv) and (v) to read
1-13 as follows and by renumbering all subsequent subdivisions of
1-14 Subsection (1-A) accordingly:
1-15 (iii) In this Article "franchised motor vehicle dealer"
1-16 means a dealer who holds a dealer license issued by the Motor
1-17 Vehicle Board of the Department.
1-18 (iv) In this Article "independent motor vehicle dealer"
1-19 means a dealer other than a franchised dealer or a wholesale
1-20 dealer.
1-21 (v) In this Article "wholesale motor vehicle dealer" means a
1-22 dealer who sells motor vehicles to no person except:
1-23 (A) the holder of a valid dealer's general distinguishing
2-1 number; or
2-2 (B) a foreign dealer authorized by Texas law or interstate
2-3 reciprocity agreement to purchase a vehicle in Texas without
2-4 remitting the motor vehicle sales tax.
2-5 SECTION 2. Article 6686(a)(1-A)(iii), Revised Statutes, is
2-6 amended to read as follows:
2-7 (iii) No person may engage in business as a dealer in (1)
2-8 motor vehicles, (2) motorcycles, (3) house trailers, or (4)
2-9 trailers or semitrailers, either directly or indirectly or by
2-10 consignment, unless that person has a currently valid general
2-11 distinguishing number assigned by the Department for each location
2-12 from which the person engages in business. If a dealer consigns
2-13 more than five vehicles in a calendar year for sale from a location
2-14 other than the location for which the dealer holds a general
2-15 distinguishing number, the dealer must also hold a general
2-16 distinguishing number for the consignment location, unless the
2-17 consignment location is a wholesale motor vehicle auction.
2-18 SECTION 3. Section (a)(1-a)(v), Article 6686, Revised
2-19 Statutes, is amended to read as follows:
2-20 (v) A person who engages in business as a dealer in this
2-21 State shall make application to the Department for a general
2-22 distinguishing number authorizing him to reassign manufacturer's
2-23 certificates of origin, certificates of title, or other basic
2-24 evidences of ownership for the vehicles he sells. No person may
2-25 reassign a manufacturer's certificate of origin, certificate of
3-1 title, or other basic evidence of ownership until he has been
3-2 issued a general distinguishing number hereunder in one of the six
3-3 categories provided by this subdivision. An applicant shall
3-4 specify whether he proposes to be a (1) franchised motor vehicle
3-5 dealer, (2) independent motor vehicle dealer, (3) wholesale motor
3-6 vehicle dealer, (4) motorcycle dealer, (5) house trailer dealer, or
3-7 (6) trailer or semitrailer dealer <dealer in (1) motor vehicles,
3-8 (2) motorcycles, (3) house trailers, or (4) trailers or
3-9 semitrailers>. If the applicant proposes to secure the issuance of
3-10 dealer's license plates under Subsection (1) of this section for
3-11 attachment to more than one type of such vehicles, a separate
3-12 general distinguishing number is required for each. A dealer shall
3-13 obtain a separate and distinct general distinguishing number for
3-14 each location at which he engages in the business of buying,
3-15 selling, or exchanging motor vehicles, except that a dealer holding
3-16 a general distinguishing number for a particular type of vehicle
3-17 may buy, sell, or exchange vehicles of that type from more than one
3-18 location within the limits of a city if each location within the
3-19 limits of that city meets all requirements of an established and
3-20 permanent place of business set forth in this article and rules
3-21 promulgated by the Department, and if the dealer is not otherwise
3-22 prohibited by law from doing business at more than one location. A
3-23 dealer holding a general distinguishing number may reassign a
3-24 manufacturer's certificate of origin, certificate of title, or
3-25 other basic evidence of ownership of any type of vehicle owned by
4-1 him and which he is not otherwise prohibited by law from selling;
4-2 provided, however, that such dealer may reassign a manufacturer's
4-3 certificate of origin, certificate of title, or other basic
4-4 evidence of ownership of a motor vehicle owned by him and which he
4-5 is not otherwise prohibited by law from selling only if he has
4-6 complied with Subdivision (vii) of this subsection or is licensed
4-7 by the Motor Vehicle Board of the Department <Texas Motor Vehicle
4-8 Commission>.
4-9 SECTION 4. Section (a)(1-A)(vi), Article 6686, Revised
4-10 Statutes, is amended to read as follows:
4-11 (vi) The Department may not issue a general distinguishing
4-12 number to a person until the person has filed with he Department a
4-13 sworn application showing and swearing to the truth of the
4-14 following:
4-15 (A) that the location for which the applicant seeks the
4-16 issuance of a general distinguishing number is an established and
4-17 permanent place of business situated on real property owned, or
4-18 leased by him under a written lease for a term of not less than one
4-19 year, on which the applicant maintains a permanent furnished office
4-20 for the sale of vehicles of the type specified in his application
4-21 and equipped as required by the Department, a conspicuous sign with
4-22 letters at least six inches in height showing the name of the
4-23 applicant's business, and on which the applicant has sufficient
4-24 space to display at least five (5) vehicles of the type specified
4-25 in his application, except that a wholesale motor vehicle dealer
5-1 <who buys, sells, or exchanges vehicles with no person other than
5-2 another dealer holding a general distinguishing number> is not
5-3 required to maintain display space;
5-4 (B) that the applicant intends to remain regularly and
5-5 actively engaged in business as a dealer of the type of vehicle for
5-6 which he seeks a general distinguishing number for at least one
5-7 year at the specified location and that the applicant or his bona
5-8 fide employee will be on the location for the purpose of buying,
5-9 selling, leasing, or exchanging vehicles and will be available to
5-10 the public or the Department at that location during reasonable and
5-11 lawful business hours;
5-12 (C) that the applicant has complied with all applicable
5-13 state laws and municipal ordinances; and
5-14 (D) other information required by the Department.
5-15 SECTION 5. Article 6686, Revised Statutes, is amended by
5-16 adding Section (2-B) to read as follows:
5-17 Sec. (2-B) Motor Vehicle Dealers. (i) The holder of a
5-18 franchised motor vehicle dealer's general distinguishing number may
5-19 buy, sell, or exchange new or used motor vehicles, and reassign a
5-20 manufacturer's certificate of origin, certificate of title, or
5-21 other basic evidence of ownership of any type of vehicle owned by
5-22 him if the holder is not otherwise prohibited by law from selling
5-23 or offering the vehicle for sale.
5-24 (ii) The holder of an independent motor vehicle dealer's
5-25 general distinguishing number may reassign a certificate of title
6-1 or other basic evidence of ownership of any type of vehicle owned
6-2 by the dealer which the dealer is not otherwise prohibited by law
6-3 from selling or offering for sale.
6-4 (iii) The holder of a wholesale motor vehicle dealer's
6-5 general distinguishing number may sell or offer to sell motor
6-6 vehicles to no person except a dealer holding a general
6-7 distinguishing number, or a foreign dealer otherwise authorized by
6-8 Texas law or interstate reciprocity agreement to purchase a vehicle
6-9 in Texas without remitting the motor vehicle sales tax.
6-10 SECTION 6. Article 6686(5-A), Revised Statutes, is amended
6-11 to read as follows:
6-12 Sec. (5-A). Cancellation. The Department may cancel a
6-13 general distinguishing number if:
6-14 (A) the dealer has filed a false or forged title or tax
6-15 document, including sales tax affidavit or affidavit making
6-16 application for a certified copy of a title;
6-17 (B) the dealer has failed to take assignment of all
6-18 certificates of title, manufacturer's certificates, or other basic
6-19 evidence of ownership for vehicles acquired by the dealer or failed
6-20 to assign the certificate of title, manufacturer's certificate, or
6-21 other basic evidence of ownership for vehicles sold;
6-22 (C) the dealer has used or permitted the use of a metal
6-23 dealer's plate of a Dealer's Temporary Cardboard Tag on a vehicle
6-24 which the dealer does not own or control or on a vehicle which is
6-25 not in stock and offered for sale;
7-1 (D) the dealer has made a material misrepresentation in any
7-2 application or other information filed with the Department;
7-3 (E) the dealer has failed to maintain the qualifications for
7-4 a general distinguishing number;
7-5 (F) the dealer has willfully failed to comply with this Act
7-6 or any rule or regulation of the Department;
7-7 (G) the dealer has not assigned at least five (5) vehicles
7-8 in the prior twelve (12) months. This paragraph does not apply to
7-9 dealers who have been licensed less than twelve (12) months; <or>
7-10 (H) the dealer has failed to demonstrate compliance with the
7-11 provisions of Articles 23.12, 23.12A, and 23.12B, Tax Code, or
7-12 (I) <(H)> the dealer has used or allowed the use of his
7-13 general distinguishing number, or used or allowed the use of a
7-14 location for which a general distinguishing number is held, for the
7-15 purpose of avoiding the provisions of this article.
7-16 SECTION 7. Article 6686(a)(7), Revised Statutes, is amended
7-17 to read as follows:
7-18 Sec. 7. Fees and Forms. Each applicant for an original
7-19 general distinguishing number shall pay to the Department a fee of
7-20 $500 <Two Hundred and Fifty Dollars ($250)>. Each applicant for
7-21 renewal of a general distinguishing number shall pay to the
7-22 Department an annual fee of $200 <One Hundred Dollars ($100)>.
7-23 Each applicant for a dealer's plate or plates shall pay a fee of
7-24 $20 <Ten Dollars ($10)> for each metal dealer's plate desired.
7-25 Each applicant for a manufacturer's plate or plates shall pay a fee
8-1 of $40 <Twenty Dollars ($20)> for each plate. All such fees shall
8-2 be deposited in the State Highway Fund. Applications for a
8-3 dealer's or manufacturer's license plate or general distinguishing
8-4 number, and for renewals thereof, shall be made in writing on forms
8-5 prescribed and furnished by the department, and each such
8-6 application shall contain a statement to the effect that the
8-7 applicant agrees to permit the Department to examine during working
8-8 hours the ownership papers for each vehicle, registered or
8-9 unregistered, in the possession of the applicant or under his
8-10 control. All facts stated in an application shall be sworn to
8-11 before an officer authorized to administer oaths and no dealer's
8-12 general distinguishing number shall be issued until this Act is
8-13 complied with. All such applications, accompanied by the
8-14 prescribed fee, should be made to the Department by January 15 of
8-15 each year and the license plates for those applications meeting the
8-16 provisions of this Act will be mailed to the applicants during the
8-17 succeeding months of February and March. Each general
8-18 distinguishing number and each dealer's and manufacturer's license
8-19 plate shall expire on March 31 of each year.
8-20 SECTION 8. The importance of this legislation and the
8-21 crowded of calendars in both houses create an emergency and an
8-22 imperative public necessity that the constitutional rule requiring
8-23 bills to be read on three several days in each be suspended, and
8-24 this rule is hereby suspended, and that this Act take effect and be
8-25 in force from and after its passage, and it is so enacted.