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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of motor vehicle dealers, manufacturers, |
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distributors, and representatives. |
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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. PROPERTY USE AGREEMENTS RELATED TO PROPERTY |
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OWNED BY MANUFACTURER, DISTRIBUTOR, OR REPRESENTATIVE. (a) |
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Notwithstanding Sections 2301.4671, 2301.481, and 2301.482, and |
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subject to this section, a dealer may enter into a property use |
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agreement for a franchise in which the manufacturer, distributor, |
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or representative has purchased any necessary real estate for the |
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dealership. |
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(b) A property use agreement under this section may include |
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provisions that: |
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(1) limit the franchised dealer's ability to add a |
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line-make; |
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(2) prohibit the sale or transfer of the dealership |
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property to any transferee that will not continue to engage in the |
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business of buying, selling, or exchanging new motor vehicles or |
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servicing or repairing motor vehicles under a manufacturer's |
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warranty under a franchise in effect with the manufacturer or |
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distributor that purchased or funded any part of the dealership |
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property; and |
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(3) bind a franchised dealer's successor. |
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(c) A property use agreement under this section expires on |
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the earlier of: |
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(1) the date provided by the property use agreement; |
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or |
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(2) the termination of the franchise between the |
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parties to the property use agreement. |
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(d) This section applies to a subsidiary of, or a person |
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controlled by, a manufacturer, distributor, or representative. |
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SECTION 2. Section 2301.6521(d), Occupations Code, is |
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amended to read as follows: |
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(d) A franchised dealer may not protest an application to |
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relocate a dealership under this section if the proposed relocation |
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site is not: |
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(1) more than two miles [or less] from the dealership's |
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current location; or |
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(2) closer to the franchised dealer than the site from |
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which the dealership is being relocated. |
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SECTION 3. Section 2301.483, Occupations Code, as added by |
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this Act, applies only to an agreement entered into or renewed under |
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Chapter 2301, Occupations Code, on or after the effective date of |
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this Act. An agreement entered into or renewed before that date is |
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governed by the law in effect on the date the agreement was entered |
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into or renewed, and the former law is continued in effect for that |
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purpose. |
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SECTION 4. Section 2301.6521(d), Occupations Code, as |
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amended by this Act, applies only to an application to relocate a |
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dealership that is made on or after the effective date of this Act. |
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An application made before that date is governed by the law in |
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effect on the date the application was made, and the former law is |
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continued in effect for that purpose. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |