Senate Research Center   S.B. 1504
By: Harris
Infrastructure Development and Security
As Filed


Chapter 2301 of the Occupations Code imposes licensing requirements on,
and regulates the relations between and among, motor vehicle
manufacturers, distributors, dealers, lessors, and lease facilitators.  As
proposed, S.B. 1504 provides conforming and corrective amendments to
Chapter 2301, Occupations Code. 


This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 


SECTION 1.  Amends Section 2301.002, Occupations Code, as follows:

 (2)  Defines "ambulance manufacturer."

 (2) - (14) redesignated as (3) - (15).

 (7)  Redefines "converter."

 (16)  Defines "fire-fighting vehicle manufacturer."

 (15) - (37) redesignated as (17) - (39).

 (18)  Makes a conforming change.

 (25)  Redefines "motor vehicle."

 (34)  Redefines "towable recreational vehicle."

SECTION 2.  Amends Section 2301.153(a), Occupations Code, to add
Subdivision (10) to provide that, notwithstanding any other law, the Motor
Vehicle Board (MVB) of the Texas Department of Transportation has all
powers necessary, incidental, or convenient to perform a power or duty
expressly granted under this chapter, including the power to, with the
prior approval of the MVB, accept a donation or contribution of property
or services to be used by MVB or its staff in the execution of its legal
duties.  Redesignates Subdivisions (10) - (19) as (11) - (20). 

SECTION 3.  Amends Section 2301.251(a), Occupations Code, to make a
conforming change. 

SECTION 4.  Amends Chapter 2301F, Occupations Code, by adding Section
2301.266, as follows: 

Sec. 2301.266.  OPERATION OF BUSINESS WITHOUT LICENSE.  (a)  Authorizes a
person who meets the requirements set forth in this section,
notwithstanding the terms of this chapter or other provisions of law, to
engage in the business of the operation of a dealership without a valid
  (b)  Sets forth persons to whom this section applies.

(c)  Authorizes a person to whom this section applies on an interim basis
to engage in the business of operating the dealership for which the
person's license application is pending.  Requires a person who operates a
dealership in the manner provided by this section to notify MVB of the
person's intent to do so by registered mail, return receipt requested. 

(d)  Provides that this section does not prejudice MVB's right to deny a
license on the basis and under the circumstances provided by this chapter
and MVB rules. 

SECTION  5.  Amends Section 2301.252(b), Occupations Code, to provide that
for purposes of this section, the make of an ambulance is that of the
ambulance manufacturer, and the make of a fire-fighting vehicle is that of
the fire-fighting vehicle manufacturer. 

SECTION  6.  Amends Section 2301.301(c), Occupations Code, to except the
fee required in conjunction with an application to relocate a franchised
dealership within the city limits of the city in which the dealership is
located from the requirement that the fee for a license be prorated. 

SECTION  7.  Amends Section 2301.476, Occupations Code, by adding
Subsection (h), to authorize a manufacturer or distributor,
notwithstanding the terms of this chapter and subject to the limitations
set forth in this subsection, to own an interest in an entity that holds a
general distinguishing number if that entity has certain characteristics. 

SECTION  8.  Amends Section 2301.705(b), Occupations Code, to require
notice to a person outside the United States to be given by registered
mail, return receipt requested, or by a private carrier who offers
confirmation of delivery. 

SECTION  9.  Amends Section 2301.803(c), Occupations Code, to authorize a
person affected by a statutory stay imposed by this chapter to request a
hearing, rather than initiate a proceeding before MVB, to modify, vacate,
or clarify the extent and application of the statutory stay. 

SECTION  10.  Effective date:  September 1, 2003.