79R1165 YDB-F
By: Goolsby H.B. No. 244
A BILL TO BE ENTITLED
AN ACT
relating to the licensing and regulation of motor home and towable
recreational vehicle exhibition promoters, dealers, and
manufacturers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2301.001, Occupations Code, is amended
to read as follows:
Sec. 2301.001. CONSTRUCTION; PURPOSE. The distribution
and sale of motor vehicles in this state vitally affects the general
economy of the state and the public interest and welfare of its
citizens. This chapter shall be liberally construed to accomplish
its purposes, including the exercise of the state's police power to
ensure a sound system of distributing and selling motor vehicles
through:
(1) licensing and regulating manufacturers,
distributors, converters, exhibition promoters, and dealers of
motor vehicles; and
(2) enforcing this chapter as to other persons to
provide for compliance with manufacturer's warranties and to
prevent fraud, unfair practices, discrimination, impositions, or
other abuse of the people of this state.
SECTION 2. Section 2301.002, Occupations Code, is amended
by amending Subdivision (3) and adding Subdivisions (13-a), (13-b),
and (13-c) to read as follows:
(3) "Broker" means a person who, for a fee,
commission, or other valuable consideration, arranges or offers to
arrange a transaction involving the sale of a new motor vehicle,
other than a person who is:
(A) a franchised dealer or a bona fide employee
of a franchised dealer acting for the franchised dealer;
(B) a representative or a bona fide employee of a
representative acting for the representative;
(C) a distributor or a bona fide employee of a
distributor acting for the distributor;
(D) an exhibition promoter, dealer, or
manufacturer or a bona fide employee of an exhibition promoter,
dealer, or manufacturer acting for the promoter, dealer, or
manufacturer; or
(E) [(D)] the owner of the vehicle at any point
in the transaction.
(13-a) "Exhibition dealer" means a person who is
licensed or otherwise legally recognized in this state or another
jurisdiction as a motor vehicle dealer and who buys, sells, or
exchanges motor homes or towable recreational vehicles at a motor
home or towable recreational vehicle exhibition or show in this
state.
(13-b) "Exhibition manufacturer" means a person who
manufactures or assembles new motor homes or towable recreational
vehicles to display and offer for retail sale at a motor home or
towable recreational vehicle exhibition or show in this state.
(13-c) "Exhibition promoter" means a person who
organizes and conducts a show or exhibition in this state to display
and offer for retail sale motor homes or towable recreational
vehicles. The term includes a nonprofit organization that
organizes and conducts a show or exhibition in this state for the
benefit of its members.
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, the person may not:
(1) engage in business as, serve in the capacity of, or
act as a dealer, manufacturer, distributor, converter, exhibition
promoter, exhibition dealer, exhibition manufacturer,
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. Subchapter F, Chapter 2301, Occupations Code, is
amended by adding Section 2301.2525 to read as follows:
Sec. 2301.2525. LICENSE REQUIRED: NEW MOTOR HOME OR TOWABLE
RECREATIONAL VEHICLE EXHIBITION. (a) A person may not act as an
exhibition promoter or engage in the business of displaying or
selling at retail new motor homes or towable recreational vehicles
at an exhibition or show in this state unless the person holds an
exhibition promoter's license issued by the board under this
chapter and complies with this chapter.
(b) A person who engages in the retail sale of motor homes or
towable recreational vehicles and who is licensed as a motor
vehicle dealer in another state or jurisdiction may not provide
motor homes or towable recreational vehicles for display and retail
sale at an exhibition or show in this state and may not engage in the
business of displaying or selling at retail new motor homes or
towable recreational vehicles at an exhibition or show in this
state unless the person holds an exhibition dealer's license issued
by the board under this chapter and complies with this chapter.
(c) An exhibition manufacturer may not provide motor homes
or towable recreational vehicles for display and retail sale by an
exhibition dealer at an exhibition or show in this state unless the
manufacturer holds an exhibition manufacturer's license issued by
the board under this chapter and complies with this chapter.
(d) The board may issue a license under this section to a
person whose principal business location is within this state or is
outside this state.
(e) A person licensed in accordance with this section is not
required to hold a franchised dealer's license or obtain a dealer
general distinguishing number to display or sell motor homes or
towable recreational vehicles at an exhibition or show in this
state.
SECTION 5. Section 2301.264(a), Occupations Code, is
amended to read as follows:
(a) The annual fees for a license issued under this chapter
are:
(1) $900 for a manufacturer or distributor, plus $20
for each dealer franchised by the manufacturer or distributor;
(2) for a franchised dealer:
(A) $175, if the dealer sold fewer than 201 new
motor vehicles during the preceding calendar year;
(B) $275, if the dealer sold more than 200 but
fewer than 401 new motor vehicles during the preceding calendar
year;
(C) $400, if the dealer sold more than 400 but
fewer than 801 new motor vehicles during the preceding calendar
year;
(D) $500, if the dealer sold more than 800 but
fewer than 1,201 new motor vehicles during the preceding calendar
year;
(E) $625, if the dealer sold more than 1,200 but
fewer than 1,601 new motor vehicles during the preceding calendar
year;
(F) $750, if the dealer sold more than 1,600 new
motor vehicles during the preceding calendar year; and
(G) $100 for each location separate from the
dealership at which the dealer does not offer motor vehicles for
sale but performs warranty service work on vehicles the dealer is
franchised and licensed to sell;
(3) $25 for an amendment to a license;
(4) $100 for a representative;
(5) $375 for a converter;
(6) for a vehicle lessor:
(A) $175, if the lessor leased 200 or fewer motor
vehicles during the preceding calendar year;
(B) $275, if the lessor leased more than 200 but
fewer than 401 motor vehicles during the preceding calendar year;
(C) $400, if the lessor leased more than 400 but
fewer than 801 motor vehicles during the preceding calendar year;
(D) $500, if the lessor leased more than 800 but
fewer than 1,201 motor vehicles during the preceding calendar year;
(E) $625, if the lessor leased more than 1,200
but fewer than 1,601 motor vehicles during the preceding calendar
year; and
(F) $750, if the lessor leased more than 1,600
motor vehicles during the preceding calendar year;
(7) $375 for a vehicle lease facilitator; [and]
(8) $200 for an exhibition dealer, plus $100 for each
new motor home or towable recreational vehicle the dealer
transports into this state for display or retail sale at a motor
home or towable recreational vehicle show or exhibition;
(9) $100 for an exhibition manufacturer, plus $100 for
each new motor home or towable recreational vehicle the
manufacturer transports into this state for display or retail sale
at a motor home or towable recreational vehicle show or exhibition;
(10) a fee in the amount determined by the board for an
exhibition promoter; and
(11) $50 for a duplicate license.
SECTION 6. Section 2301.358, Occupations Code, is amended
to read as follows:
Sec. 2301.358. MOTOR HOME OR TOWABLE RECREATIONAL VEHICLE
SHOW OR EXHIBITION. (a) An exhibition promoter licensed under this
chapter may organize and conduct a motor home or towable
recreational vehicle exhibition or show in accordance with this
chapter and board rules. [A person who holds a license issued under
this chapter may not participate in a new motor vehicle show or
exhibition unless:
[(1) the person provides the board with written notice
at least 30 days before the date the show or exhibition opens; and
[(2) the board grants written approval.]
(b) Nothing in this section exempts a franchised dealer or
dealer from complying with a law or rule relating to the sale and
delivery of a new motor home or towable recreational vehicle. [A
person who holds a license issued under this chapter may not sell or
offer for sale a new motor vehicle at a show or exhibition, but
dealership personnel may be present to aid in showing and
exhibiting new motor vehicles.]
(c) This section does not prohibit the sale of an [a towable
recreational vehicle, motor home,] ambulance, fire-fighting
vehicle, or tow truck at a show or exhibition if:
(1) the show or exhibition is approved by the board;
and
(2) the sale is not otherwise prohibited by law.
(d) A rule adopted by the board regulating the off-site
display or sale of towable recreational vehicles must include a
provision that authorizes the display and sale of towable
recreational vehicles at a private event in a trade area that would
not otherwise qualify for the private event under the application
of general participation requirements for organized dealer shows
and exhibitions.
(e) The retail sale in accordance with this section of a
motor home or towable recreational vehicle that will be registered
outside this state and will be transported outside this state
within 72 hours of the exhibition or show by the purchaser or an
agent of the purchaser for use outside this state is not subject to
a tax imposed under Chapter 152, Tax Code, provided the purchaser or
agent complies with Section 152.092, Tax Code.
SECTION 7. Section 503.024(b), Transportation Code, is
amended to read as follows:
(b) For the purposes of Section 503.021, a person is not
engaging in business as a dealer by:
(1) selling or offering to sell a vehicle the person
acquired for personal or business use to a person other than a
retail buyer if the sale or offer is not made to avoid a requirement
of this chapter;
(2) selling, in a manner provided by law for the forced
sale of vehicles, a vehicle in which the person holds a security
interest;
(3) acting under a court order as a receiver, trustee,
administrator, executor, guardian, or other appointed person;
(4) selling a vehicle the person acquired from the
vehicle's owner as a result of paying an insurance claim if the
person is an insurance company;
(5) selling an antique passenger car or truck that is
at least 25 years of age; [or]
(6) selling a special interest vehicle that is at
least 12 years of age if the person is a collector; or
(7) displaying or selling a motor home or towable
recreational vehicle at a recreational vehicle show or exhibition
in accordance with Chapter 2301, Occupations Code.
SECTION 8. (a) Not later than January 1, 2006, the Motor
Vehicle Board of the Texas Department of Transportation shall adopt
the rules and establish the licensing categories required by
Chapter 2301, Occupations Code, as amended by this Act.
(b) An exhibition promoter, exhibition dealer, or
exhibition manufacturer is not required to comply with the
licensing requirements of Section 2301.2525, Occupations Code, as
added by this Act, before January 1, 2006.
SECTION 9. This Act takes effect September 1, 2005.