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A BILL TO BE ENTITLED
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AN ACT
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relating to the selection by motor vehicle dealers of materials and |
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vendors for motor vehicle dealership upgrades and improvements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter J, Chapter 2301, Occupations Code, is |
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amended by adding Section 2301.483 to read as follows: |
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Sec. 2301.483. SELECTION BY DEALER OF VENDOR OR MATERIALS |
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FOR DEALERSHIP IMPROVEMENT. (a) Except as otherwise provided by |
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this section, a manufacturer or distributor may not: |
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(1) require a dealer to purchase or use specific |
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materials or to purchase materials, goods, or services from a |
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specific vendor when making an upgrade or improvement to the |
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dealer's dealership; or |
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(2) directly or indirectly take an adverse action |
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against a dealer who chooses materials, goods, or services or a |
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vendor for an upgrade to the dealer's dealership as provided by this |
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section. |
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(b) If a manufacturer or distributor provides money, |
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credit, an allowance, or a reimbursement directly or indirectly to |
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a dealer to compensate the dealer for the cost of, or a substantial |
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portion of the cost of, a specific upgrade or improvement to the |
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dealer's dealership, the dealer may select the materials, goods, |
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services, and vendors for the upgrade or improvement, but shall |
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select materials, goods, services, and vendors that are of like |
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kind and quality to those specified by the manufacturer or |
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distributor, if any. |
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(c) This section does not allow a dealer or a vendor |
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selected by a dealer to infringe on, eliminate, or impair a |
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manufacturer's or distributor's intellectual property rights. |
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(d) This section does not apply to a sign that contains |
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intellectual property owned by a manufacturer or distributor. |
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SECTION 2. The changes in law made by this Act apply to a |
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manufacturer, distributor, and dealer regardless of the date the |
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person's license is issued or renewed under Chapter 2301, |
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Occupations Code, and regardless of the date a franchise agreement |
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is entered into or renewed. |
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SECTION 3. This Act takes effect September 1, 2013. |