BILL ANALYSIS

C.S.H.B. 2109

By: Geren

Transportation

Committee Report (Substituted)

BACKGROUND AND PURPOSE

C.S.H.B. 2109 requires an applicant for an independent dealer license to sell motor vehicles in Texas to complete a dealer education course approved by the Texas Department of Transportation.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2109 amends the Transportation Code to require an applicant for an original dealer general distinguishing number who proposes to be an independent motor vehicle dealer and who does not hold a general distinguishing number as a franchised or independent motor vehicle dealer to submit to the Texas Department of Transportation (TxDOT) evidence that the applicant completed a dealer education course, approved by TxDOT, in the year preceding the date the application is filed.  The bill requires the course to be at least eight hours and not more than 12 hours in length.  The bill authorizes TxDOT to approve a dealer education course only if the provider of the course: is a business with experience providing compliance education to independent motor vehicle dealers; provides online and CD-ROM versions of the course with assessment and verification capabilities; provides ongoing educational support by telephone or the Internet for one year at no additional cost to persons who have completed a course; provides at least one instructor-led dealer education course each month, including at least one instructor-led course each year in or near Austin, Dallas and Fort Worth, El Paso, Houston, and San Antonio; and has a curriculum review panel for the course that consists of at least four independent dealers who hold dealer general distinguishing numbers.

C.S.H.B. 2109 adds a temporary provision, set to expire January 1, 2011, requiring, not later than the 180th day after the date TxDOT first approves a dealer education course under the bill's provisions, each person who holds a dealer general distinguishing number as an independent motor vehicle dealer to complete a dealer education course approved by TxDOT. The bill makes these provisions inapplicable to a person who has previously completed a course approved by TxDOT.

C.S.H.B. 2109 requires TxDOT, not later than January 1, 2010, to begin to approve or reject applications from providers of dealer education courses under the bill's provisions. The bill makes its provisions applicable only to an application for an original independent motor vehicle dealer general distinguishing number filed with TxDOT on or after September 1, 2010.

EFFECTIVE DATE

September 1, 2009.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 2109 adds a temporary provision not in the original to require each person who holds a dealer general distinguishing number as an independent motor vehicle dealer to complete a dealer education course approved by the Texas Department of Transportation (TxDOT) by a certain date unless the person has previously completed a course approved by TxDOT.