78R3633 MXM-F

By:  Hughes                                                       H.B. No. 2778



A BILL TO BE ENTITLED

AN ACT

relating to allowing certain off-site sales by motor vehicle 
dealers.       
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 2301, Occupations Code, is amended by 
adding Subchapter R to read as follows:

SUBCHAPTER R.  OFF-SITE SALES
	Sec. 2301.851.  DEFINITION.  In this subchapter, "off-site 
sale" means a retail sale conducted at a location other than a 
location for which a dealer participating in the sale is issued a 
general distinguishing number.
	Sec. 2301.852.  OFF-SITE SALES ALLOWED.  (a)  A dealer who 
holds an off-site sales permit issued under this subchapter may 
participate in an off-site sale only as provided by this 
subchapter.
	(b)  This subchapter does not allow the off-site sale of a 
new motor vehicle.
	Sec. 2301.853.  PERMIT REQUIRED.  (a)  An application for an 
off-site sales permit must be made on a form prescribed by the 
board.
	(b)  The application must include:                                      
		(1)  the fee required by the board;                                    
		(2)  proof of a lease or other permission from the owner 
for the location at which the sale will take place; and
		(3)  any other information required by the board.                      
	(c)  The board shall set the fee for the permit in an amount 
sufficient to cover the state's administrative costs.
	(d)  The permit must list the dealer's name, the dealer's 
general distinguishing number, the date and duration of the sale, 
and the location of the sale.
	Sec. 2301.854.  DEALER REQUIREMENTS.  At least two different 
dealers must participate in each off-site sale.  The participating 
dealers must hold different general distinguishing numbers and may 
not have any owners in common.
	Sec. 2301.855.  LOCATION OF OFF-SITE SALE; POPULATION LIMIT.  
An off-site sale may be conducted only:
		(1)  within the municipal limits of a municipality in 
which each participating dealer has a location covered by a general 
distinguishing number; and
		(2)  in a county with a population of less than 100,000.               
	Sec. 2301.856.  LIMIT ON DURATION OF OFF-SITE SALE.  An 
off-site sale conducted under this subchapter may not exceed 72 
hours.
	Sec. 2301.857.  LIMIT ON NUMBER OF OFF-SITE SALES.  A dealer 
may not participate in more than two off-site sales per year per 
general distinguishing number.
	SECTION 2.   This Act takes effect September 1, 2003.