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A BILL TO BE ENTITLED
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AN ACT
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relating to the requirement that certain applicants for a vehicle |
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dealer general distinguishing number complete a dealer education |
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course. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 503.029, Transportation Code, is amended |
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by adding Subsections (d), (e), and (f) to read as follows: |
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(d) An applicant for an original dealer general |
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distinguishing number who proposes to be an independent motor |
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vehicle dealer and who does not hold a general distinguishing |
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number as a franchised motor vehicle dealer or independent motor |
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vehicle dealer shall submit to the department evidence that the |
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applicant completed, in the 24-month period before the date the |
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application is filed, a dealer education course approved by the |
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department. The course must be not less than 8 hours and not more |
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than 12 hours in length. If the applicant is an entity, the course |
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must be completed by one individual listed on the application as an |
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owner, manager, officer, or director of the entity. |
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(e) The department may approve a dealer education course |
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under Subsection (d) only if: |
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(1) the provider of the course is: |
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(A) an institution of higher education as defined |
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by Section 61.003, Education Code; or |
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(B) a professional or trade association in the |
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field of motor vehicle sales domiciled in this state that: |
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(i) has been in business for at least five |
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years; and |
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(ii) has, as a majority of its membership, |
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members who are motor vehicle dealers licensed in this state; |
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(2) the course curriculum, materials, and instructors |
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satisfy any applicable department requirements; |
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(3) the course includes instruction in federal and |
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state laws and department rules applicable to independent motor |
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vehicle dealers; |
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(4) the cost per course participant does not exceed: |
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(A) $150 for a course offered online; or |
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(B) $200 for a course offered through classroom |
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instruction; and |
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(5) on successful completion of the course, a course |
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participant receives a certificate of completion from the course |
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provider. |
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(f) An applicant is not required to comply with Subsection |
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(d) if, at the time the application is submitted, an online dealer |
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education course is not currently approved by the department. |
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SECTION 2. Section 503.029(d), Transportation Code, as |
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added by this Act, applies only to an application for an original |
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dealer general distinguishing number filed with the Texas |
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Department of Motor Vehicles on or after September 1, 2020. An |
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application filed before that date is governed by the law in effect |
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immediately before the effective date of this Act, and the former |
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law is continued in effect for that purpose. |
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SECTION 3. Not later than January 1, 2020, the Texas |
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Department of Motor Vehicles shall begin accepting applications for |
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approval from providers of dealer education courses in accordance |
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with Sections 503.029(d) and (e), Transportation Code, as added by |
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this Act. |
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SECTION 4. This Act takes effect September 1, 2019. |