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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale of certain used trucks; providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2301.476, Occupations Code, is amended |
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by adding Subsections (j) through (o) to read as follows: |
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(j) This section does not prohibit a manufacturer or |
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distributor that owned, on or before January 1, 2007, an interest in |
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a motor vehicle dealer engaged in the sale of used motor vehicles, |
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and that has not agreed to or been ordered by a court order or ruling |
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to comply with Subsection (c), from continuing to directly or |
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indirectly own an interest in the motor vehicle dealer if the |
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manufacturer's or distributor's ownership and control of the motor |
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vehicle dealer does not increase after January 1, 2007. The |
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exception provided by this subsection: |
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(1) applies if the motor vehicle dealer is engaged in |
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the business of selling or offering for sale only used trucks that |
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have a gross vehicle weight rating of 16,000 pounds or more; |
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(2) does not apply if the motor vehicle dealer sells a |
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new motor vehicle; |
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(3) does not permit an increase in the manufacturer's |
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or distributor's ownership interest in the motor vehicle dealer; |
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(4) does not grant an exception to this chapter other |
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than the exception expressly provided by this subsection; |
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(5) applies regardless of whether there is a transfer |
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or relocation of the motor vehicle dealer required by: |
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(A) an act of God; |
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(B) the exercise of eminent domain authority; or |
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(C) another reason approved by the division after |
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a hearing conducted in the same manner as a contested case under |
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Subchapter O; and |
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(6) does not apply if the manufacturer or distributor |
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no longer owns the interest in the motor vehicle dealer that the |
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manufacturer or distributor owned on or before January 1, 2007. |
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(k) A motor vehicle dealer under Subsection (j) violates |
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that subsection if the dealer: |
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(1) sells or offers for sale a motor vehicle with a |
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gross vehicle weight rating of less than 16,000 pounds, other than a |
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motor vehicle the dealer has acquired as a trade-in in a transaction |
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involving the retail sale of a motor vehicle with a gross vehicle |
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weight rating of 16,000 pounds or more and if the trade-in motor |
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vehicle will be sold or offered for sale only to a person who holds a |
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general distinguishing number issued in the category described by |
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Section 503.029(a)(6)(C), Transportation Code; |
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(2) performs or offers to perform new motor vehicle |
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warranty repair; or |
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(3) sells or offers for sale a new motor vehicle. |
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(l) A manufacturer or distributor described by Subsection |
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(j) violates that subsection if the manufacturer or distributor: |
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(1) sells, assigns, or otherwise transfers an interest |
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in the motor vehicle dealer or a portion of its interest in the |
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motor vehicle dealer to an unaffiliated manufacturer or |
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distributor; or |
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(2) increases its ownership interest in the motor |
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vehicle dealer. |
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(m) A person who violates Subsection (j), (k), or (l) is |
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subject to: |
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(1) a civil penalty under Section 2301.801; |
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(2) a suit for injunctive relief under Section |
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2301.804; and |
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(3) denial, revocation, or suspension of a license |
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under Section 2301.651. |
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(n) For purposes of Subsections (j), (k), and (l), a |
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reference to a motor vehicle dealer includes the physical premises, |
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business facilities, and operations where motor vehicle sales |
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occur. |
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(o) This subsection, Subsections (j) through (n), and the |
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exception provided by Subsection (j) expire September 1, 2013. |
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SECTION 2. This Act takes effect September 1, 2008. |
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