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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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and distributors. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 503.001, Transportation Code, is amended |
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by amending Subdivisions (4) and (9) and adding Subdivision (10-a) |
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to read as follows: |
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(4) "Dealer" means a person who regularly and actively |
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buys, sells, or exchanges vehicles at an established and permanent |
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location. The term includes a franchised motor vehicle dealer, an |
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independent motor vehicle dealer, an independent mobility motor |
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vehicle dealer, [and] a wholesale motor vehicle dealer, and a |
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manufacturer motor vehicle dealer. |
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(9) "Independent motor vehicle dealer" means a dealer |
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other than a franchised motor vehicle dealer, an independent |
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mobility motor vehicle dealer, [or] a wholesale motor vehicle |
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dealer, or a manufacturer motor vehicle dealer. |
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(10-a) "Manufacturer motor vehicle dealer" means a |
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manufacturer who, at an established and permanent location, |
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regularly and actively buys, sells, or exchanges motor vehicles of |
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a line make the manufacturer manufactures, distributes, or |
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assembles. |
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SECTION 2. Section 503.029(a), Transportation Code, is |
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amended to read as follows: |
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(a) An applicant for an original or renewal dealer general |
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distinguishing number must submit to the department a written |
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application on a form that: |
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(1) is provided by the department; |
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(2) contains the information required by the |
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department; |
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(3) contains information that demonstrates the person |
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meets the requirements prescribed by Section 503.032; |
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(4) contains information that demonstrates the |
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applicant has complied with all applicable state laws and municipal |
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ordinances; |
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(5) states that the applicant agrees to allow the |
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department to examine during working hours the ownership papers for |
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each registered or unregistered vehicle in the applicant's |
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possession or control; and |
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(6) specifies whether the applicant proposes to be a: |
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(A) franchised motor vehicle dealer; |
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(B) independent motor vehicle dealer; |
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(C) wholesale motor vehicle dealer; |
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(D) motorcycle dealer; |
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(E) house trailer dealer; |
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(F) trailer or semitrailer dealer; [or] |
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(G) independent mobility motor vehicle dealer; |
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or |
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(H) manufacturer motor vehicle dealer. |
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SECTION 3. Section 503.036(a), Transportation Code, is |
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amended to read as follows: |
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(a) The holder of a franchised motor vehicle dealer's |
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general distinguishing number or manufacturer motor vehicle |
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dealer's general distinguishing number may buy, sell, or exchange |
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new or used motor vehicles and reassign a manufacturer's |
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certificate of origin, certificate of title, or other basic |
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evidence of ownership of any type of vehicle owned by the dealer |
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that the dealer is not otherwise prohibited by law from selling or |
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offering for sale. |
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SECTION 4. Section 2301.002(25), Occupations Code, is |
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amended to read as follows: |
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(25) "Nonfranchised dealer" means a person who holds |
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an independent motor vehicle dealer's general distinguishing |
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number, an independent mobility motor vehicle dealer's general |
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distinguishing number, [or] a wholesale motor vehicle dealer's |
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general distinguishing number, or a manufacturer motor vehicle |
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dealer's general distinguishing number issued by the board under |
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Chapter 503, Transportation Code. |
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SECTION 5. Section 2301.252(a), Occupations Code, is |
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amended to read as follows: |
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(a) A person may not engage in the business of buying, |
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selling, or exchanging new motor vehicles unless the person: |
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(1) holds a franchised dealer's license issued under |
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this chapter for the make of new motor vehicle being bought, sold, |
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or exchanged; |
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(2) holds a manufacturer motor vehicle dealer's |
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general distinguishing number issued by the board under Chapter |
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503, Transportation Code; or |
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(3) [(2)] is a bona fide employee of: |
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(A) the holder of a franchised dealer's license; |
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or |
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(B) the holder of a manufacturer motor vehicle |
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dealer's general distinguishing number issued by the board under |
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Chapter 503, Transportation Code. |
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SECTION 6. Section 2301.476, Occupations Code, is repealed. |
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SECTION 7. This Act takes effect September 1, 2017. |