79R6788 MSE-F

By:  Goodman                                                      H.B. No. 2149



A BILL TO BE ENTITLED

AN ACT

relating to manufacturer or distributor ownership of certain motor 
vehicle dealerships.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2301.476, Occupations Code, is amended 
by adding Subsections (j) and (k) to read as follows:
	(j)  Except as provided by Subsection (k), a manufacturer or 
distributor may have an ownership interest of less than 50 percent 
in an entity that holds a general distinguishing number if the 
entity:
		(1)  operates as a dealer for motor vehicles that:                     
			(A)  have a gross vehicle weight of at least 
17,500 pounds; and     
			(B)  are of a size and type commonly designed to 
carry at least 17 seated passengers, regardless of whether all 
particular models of the motor vehicle are actually devoted to such 
seating;
		(2)  is the exclusive seller in the United States for 
the motor vehicle; and
		(3)  is not operated or controlled by the manufacturer 
or distributor.
	(k)  The restrictions in Subsection (j) do not apply to a 
dealer entity that purchases or sells a motor vehicle described by 
Subsection (j) that is taken in on trade or purchased on the open 
market for resale.
	SECTION 2.  This Act takes effect September 1, 2005.