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78R12571 MXM-F
By: Krusee H.B. No. 2677
Substitute the following for H.B. No. 2677:
By: Garza C.S.H.B. No. 2677
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of motor vehicle sales and the powers and
duties of the Motor Vehicle Board of the Texas Department of
Transportation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2301.002(6), (16), (23), and (32),
Occupations Code, are amended to read as follows:
(6) "Converter" means a person who, before the retail
sale of a motor vehicle other than a motor home, ambulance, or
fire-fighting vehicle:
(A) assembles, installs, or affixes a body, cab,
or special equipment to a chassis; or
(B) substantially adds, subtracts from, or
modifies a previously assembled or manufactured motor vehicle.
(16) "Franchised dealer" means a person who:
(A) holds a franchised motor vehicle dealer's
general distinguishing number issued by the board under this
chapter and Chapter 503, Transportation Code; and
(B) is engaged in the business of buying,
selling, or exchanging new motor vehicles and servicing or
repairing motor vehicles under a manufacturer's warranty at an
established and permanent place of business under a franchise in
effect with a manufacturer or distributor.
(23) "Motor vehicle" means:
(A) a fully self-propelled vehicle having two or
more wheels that has as its primary purpose the transport of a
person or persons, or property, on a public highway;
(B) a fully self-propelled vehicle having two or
more wheels that:
(i) has as its primary purpose the
transport of persons or property;
(ii) is not manufactured for use on public
streets, roads, or highways; and
(iii) meets the physical requirements for
the issuance of a certificate of title under department rules [has
been issued a certificate of title];
(C) an engine, transmission, or rear axle,
regardless of whether attached to a vehicle chassis, manufactured
for installation in a vehicle that has:
(i) the transport of persons or property on
a public highway as its primary purpose; and
(ii) a gross vehicle weight rating of more
than 16,000 pounds; or
(D) a towable recreational vehicle.
(32) "Towable recreational vehicle" means a
nonmotorized vehicle that:
(A) was originally designed and manufactured
primarily to provide temporary human habitation in conjunction with
recreational, camping, or seasonal use;
(B) is, or under department rules is eligible to
be, titled and registered with the department as a travel trailer
through a county tax assessor-collector;
(C) is permanently built on a single chassis;
(D) contains at least one life support system;
and
(E) is designed to be towable by a motor vehicle.
SECTION 2. Section 2301.153(a), Occupations Code, is
amended to read as follows:
(a) Notwithstanding any other provision of law, the board
has all powers necessary, incidental, or convenient to perform a
power or duty expressly granted under this chapter, including the
power to:
(1) initiate and conduct proceedings, investigations,
or hearings;
(2) administer oaths;
(3) receive evidence and pleadings;
(4) issue subpoenas to compel the attendance of any
person;
(5) order the production of any tangible property,
including papers, records, or other documents;
(6) make findings of fact on all factual issues
arising out of a proceeding initiated under this chapter;
(7) specify and govern appearance, practice, and
procedures before the board;
(8) adopt rules and issue conclusions of law and
decisions, including declaratory decisions or orders;
(9) enter into contracts;
(10) accept a donation, including a contribution of
property or services;
(11) [(10)] execute instruments;
(12) [(11)] retain counsel;
(13) [(12)] use the services of the attorney general
and institute and direct the conduct of legal proceedings in any
forum;
(14) [(13)] obtain other professional services as
necessary and convenient;
(15) [(14)] impose a sanction for contempt;
(16) [(15)] assess and collect fees and costs,
including attorney's fees;
(17) [(16)] issue, suspend, or revoke licenses;
(18) [(17)] prohibit and regulate acts and practices
in connection with the distribution and sale of motor vehicles or
warranty performance obligations;
(19) [(18)] issue cease and desist orders in the
nature of temporary or permanent injunctions; and
(20) [(19)] impose a civil penalty.
SECTION 3. Section 2301.251(a), Occupations Code, is
amended to read as follows:
(a) Unless a person holds a license issued under this
chapter authorizing the activity, and except as provided by this
subchapter, the person may not:
(1) engage in business as, serve in the capacity of, or
act as a dealer, manufacturer, distributor, converter,
representative, vehicle lessor, or vehicle lease facilitator in
this state; or
(2) perform or offer to perform repair services on a
motor vehicle under a franchise and a motor vehicle manufacturer's
warranty, regardless of whether the person sells or offers to sell
motor vehicles at the same location.
SECTION 4. Section 2301.252, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) For purposes of this section:
(1) the make of a conversion is that of the chassis
manufacturer; [and]
(2) the make of a motor home is that of the motor home
manufacturer;
(3) the make of an ambulance is that of the ambulance
manufacturer; and
(4) the make of a fire-fighting vehicle is that of the
fire-fighting vehicle manufacturer.
(c) In this section:
(1) "Ambulance manufacturer" means a person other than
the manufacturer of a motor vehicle chassis who, before the retail
sale of the motor vehicle, performs modifications on the chassis of
a motor vehicle that result in the finished product being
classified as an ambulance.
(2) "Fire-fighting vehicle manufacturer" means a
person other than the manufacturer of a motor vehicle chassis who,
before the retail sale of the motor vehicle, performs modifications
on the chassis that result in the finished product being classified
as a fire-fighting vehicle.
SECTION 5. Subchapter F, Chapter 2301, Occupations Code, is
amended by adding Section 2301.266 to read as follows:
Sec. 2301.266. TEMPORARY OPERATION OF DEALERSHIP WITH
PENDING APPLICATION. (a) A person may engage in the business of
operating a dealership for which the person's license application
is pending if the person meets the requirements of this section.
(b) To qualify for this exception, the person must:
(1) notify the board by registered mail, return
receipt requested, of the person's intent to operate the dealership
under this section; and
(2) have a license application to purchase an existing
dealership that:
(A) is substantially complete and on file with
the board; and
(B) is not subject to protest under Section
2301.652.
(c) This section does not affect the board's right to deny
the application.
SECTION 6. Section 2301.301(c), Occupations Code, is
amended to read as follows:
(c) The board by rule may implement a system under which
licenses expire on various dates during the year. For a year in
which a license expiration date is changed, the fee for the license
shall be prorated so that the license holder pays only that portion
of the fee that is allocable to the number of months during which
the license is valid, except for a fee for an application to
relocate a dealership in a municipality in which the dealership is
located. On renewal of the license on the new expiration date, the
entire license renewal fee is payable.
SECTION 7. Section 2301.476, Occupations Code, is amended
by adding Subsection (h) to read as follows:
(h) A manufacturer or distributor may own an interest in a
dealer who:
(1) primarily engages in the business of renting to
persons motor vehicles that the dealer owns; and
(2) does not sell or offer to sell a motor vehicle
other than a vehicle that the dealer:
(A) owns and has taken from service in the
dealer's rental fleet; or
(B) accepts in trade as part of the sale of a
motor vehicle taken from service in the dealer's rental fleet.
SECTION 8. Section 2301.705(b), Occupations Code, is
amended to read as follows:
(b) Notice must be given by certified mail, return receipt
requested, unless the person to whom notice is given resides
outside of the United States. Notice to a person who resides
outside the United States must be given by:
(1) registered mail, return receipt requested; or
(2) a private carrier who offers confirmation of
delivery.
SECTION 9. Section 2301.803(c), Occupations Code, is
amended to read as follows:
(c) A person affected by a statutory stay imposed by this
chapter may request a hearing before the entity that imposed the
stay [initiate a proceeding before the board] to modify, vacate, or
clarify the extent and application of the statutory stay.
SECTION 10. This Act takes effect September 1, 2003.