S.B. No. 854
 
 
 
 
AN ACT
  relating to the regulation of motor vehicle dealers, manufacturers,
  distributors, and representatives.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter J, Chapter 2301, Occupations Code, is
  amended by adding Section 2301.483 to read as follows:
         Sec. 2301.483.  SPECIFIC USE AGREEMENTS.  (a)  In this
  section:
               (1)  "Necessary real estate" means real estate that is
  necessary for the proper operation of a dealership in the
  dealership's location as determined by the manufacturer's,
  distributor's, or representative's facility requirements or to
  comply with any applicable law or zoning requirement.
               (2)  "Owner" means a manufacturer, distributor, or
  representative, including an entity owned or controlled by a
  manufacturer, distributor, or representative.
               (3)  "Specific use agreement" means a property use
  agreement that is executed in conjunction with a sale or as part of
  the terms of a lease by an owner of real property to a transferee for
  use by the transferee as a dealership under the terms of a franchise
  executed or to be executed between the owner and the transferee.
               (4)  "Transferee" means a person who is a purchaser or
  lessee of real property subject to a specific use agreement.
         (b)  To the extent of any conflict between this section and
  another section of this chapter regarding a specific use agreement,
  this section controls.  Notwithstanding any other section of this
  chapter and except as provided by this section, a specific use
  agreement may include provisions that allow an owner to:
               (1)  limit the transferee's ability to add a line-make
  after the transferee has opened a franchised dealership on the
  property to which the specific use agreement applies;
               (2)  prohibit the sale or sublease of the dealership
  property by the transferee to a person for a purpose other than the
  operation of a dealership under a franchise with the owner of the
  property; or
               (3)  make the limitations described by Subdivisions (1)
  and (2) applicable to any successor or sublessee of the transferee.
         (c)  An owner may not coerce or attempt to coerce an existing
  franchised dealer of the owner to relocate an existing dealership
  of the same line-make to property that is subject to a specific use
  agreement. If it is proven in a civil suit that a person entered
  into a specific use agreement containing a provision described by
  Subsection (b) as a result of coercion, the specific use agreement
  is void.
         (d)  A specific use agreement executed in conjunction with
  the sale of real property may apply only to the necessary real
  estate.
         (e)  A specific use agreement executed in conjunction with
  the sale of real property to an existing franchised dealer for the
  purpose of relocating an existing dealership of the same line-make
  to property that is the subject of the specific use agreement or to
  a person for the purpose of establishing a new dealership expires on
  the earliest of:
               (1)  the date established by the specific use
  agreement;
               (2)  the termination or discontinuance of the franchise
  between the parties to the specific use agreement as a result of the
  owner:
                     (A)  discontinuing all line-makes applicable to
  the necessary real estate that are under the control of a
  manufacturer or distributor holding property use rights for the
  necessary real estate under the specific use agreement;
                     (B)  ceasing to do business in this state; or
                     (C)  changing the distributor or method of
  distribution of the owner's products in this state;
               (3)  the 10th anniversary of the date the dealership
  opens for business; or
               (4)  any time after the expiration of nine years from
  the date the dealership opens for business if the transferee has
  performed all the transferee's financial duties as provided by the
  contract and title to the property has passed to the transferee.
         (f)  Unless a specific use agreement associated with the sale
  of property expressly provides otherwise, there is no penalty for
  the full performance by the transferee and transfer of title to the
  transferee prior to the time set forth by the contract's terms.
         SECTION 2.  Subsection (d), Section 2301.6521, Occupations
  Code, is amended to read as follows:
         (d)  A franchised dealer may not protest an application to
  relocate a dealership under this section if the proposed relocation
  site is not:
               (1)  more than two miles [or less] from the site where
  the dealership is currently located; or
               (2)  closer to the franchised dealer than the site from
  which the dealership is being relocated [dealership's current
  location].
         SECTION 3.  Section 2301.483, Occupations Code, as added by
  this Act, applies only to an agreement entered into or renewed under
  Chapter 2301, Occupations Code, on or after the effective date of
  this Act. An agreement entered into or renewed before that date is
  governed by the law in effect on the date the agreement was entered
  into or renewed, and the former law is continued in effect for that
  purpose.
         SECTION 4.  Subsection (d), Section 2301.6521, Occupations
  Code, as amended by this Act, applies only to an application to
  relocate a dealership that is made on or after the effective date of
  this Act. An application made before that date is governed by the
  law in effect on the date the application was made, and the former
  law is continued in effect for that purpose.
         SECTION 5.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 854 passed the Senate on
  May 1, 2013, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 854 passed the House on
  May 22, 2013, by the following vote:  Yeas 142, Nays 6, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor