BILL ANALYSIS |
C.S.H.B. 3351 |
By: Rodriguez, Eddie |
Business & Industry |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Both United States and foreign motor vehicle manufacturers have been developing and manufacturing electric-powered motor vehicles for more than a decade. Recently, innovative engineering has increased the range, efficiency, and style of electric motor vehicles. Interested parties contend that despite the increasing innovation and interest in electric motor vehicles, small manufacturers that manufacture only such vehicles are facing unnecessary challenges in getting their products to consumers because, under current law, such manufacturers are unable to sell their vehicles directly to the Texas public without a franchise dealer relationship. These parties further contend that selling the products directly to consumers is critical to bringing this unique technology to the market and that Texas consumers looking for innovative and unique electric motor vehicles should be free to enjoy the benefits of purchasing them in Texas directly from the company. C.S.H.B. 3351 seeks to address this issue by allowing certain manufacturers of electric-powered or battery-powered motor vehicles to sell directly to Texas consumers.
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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.
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ANALYSIS
C.S.H.B. 3351 amends the Occupations Code to authorize a manufacturer only of motor vehicles powered only by electricity or battery to own or operate a dealership, act in the capacity of a dealer at any location in Texas, and obtain a dealer general distinguishing number, subject to certain application requirements, if the manufacturer has its headquarters in the United States, has never sold its line-make in the United States through an independent franchised new motor vehicle dealership, and does not sell more than 5,000 new motor vehicles powered only by electricity or battery from all dealership locations operated by the manufacturer in Texas in any calendar year. The bill includes a person who is a manufacturer authorized to own or operate a dealership or act in the capacity of a dealer under such provisions or who is a bona fide employee of such a manufacturer among the persons who are authorized to engage in the business of buying, selling, or exchanging new motor vehicles.
C.S.H.B. 3351 amends the Transportation Code to entitle such a manufacturer to obtain a dealer general distinguishing number if the manufacturer submits to the Texas Department of Motor Vehicles (TxDMV) a written application that complies with specified verification requirements, that is accompanied by the appropriate fee, that contains information that demonstrates that the manufacturer meets the requirements prescribed by the bill's provisions, and that states that the manufacturer agrees to allow TxDMV to examine during working hours the ownership papers for each registered or unregistered vehicle in the manufacturer's possession or control being offered for sale in Texas.
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EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2013.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 3351 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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