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  S.B. No. 1415
 
 
 
 
AN ACT
  relating to the ownership, control, or operation of a franchised or
  nonfranchised dealer or dealership by certain motor vehicle
  manufacturers and distributors.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 2301.476(a), (b), and (c), Occupations
  Code, are amended to read as follows:
         (a)  In this section:
               (1)  "Manufacturer"[, "manufacturer"] includes:
                     (A) [(1)]  a representative; or
                     (B) [(2)]  a person who:
                           (i) [(A)]  is affiliated with a manufacturer
  or representative; or
                           (ii) [(B)]  directly or indirectly through
  an intermediary, is controlled by, or is under common control with,
  a manufacturer.
               (2)  "Type of motor vehicle" means the classification
  of a motor vehicle as one of the following:
                     (A)  a passenger car or a truck, including a
  pickup truck, van, panel delivery truck, or a carryall truck, with a
  gross vehicle weight rating of 14,000 pounds or less that is used
  primarily to transport persons or property;
                     (B)  a motorcycle or motor-driven cycle, which
  includes:
                           (i)  an all-terrain vehicle, as defined by
  Section 502.001, Transportation Code;
                           (ii)  a recreational off-highway vehicle, as
  defined by Section 502.001, Transportation Code;
                           (iii)  an autocycle, as defined by Section
  501.008, Transportation Code;
                           (iv)  a moped, as defined by Section
  541.201, Transportation Code;
                           (v)  a motorcycle, as defined by Section
  541.201, Transportation Code; or
                           (vi)  a motor-driven cycle, as defined by
  Section 541.201, Transportation Code;
                     (C)  an engine, transmission, or rear axle, as
  described by Section 2301.002(23)(C);
                     (D)  a medium-duty or heavy-duty truck with a
  gross vehicle weight rating of more than 14,000 pounds;
                     (E)  a bus, as defined by Section 541.201,
  Transportation Code;
                     (F)  a road tractor or truck tractor, as defined
  by Section 541.201, Transportation Code;
                     (G)  a firefighting vehicle; or
                     (H)  a recreational vehicle, which includes:
                           (i)  a motor home;
                           (ii)  a towable recreational vehicle;
                           (iii)  a travel trailer, as defined by
  Section 501.002, Transportation Code; or
                           (iv)  a house trailer, as defined by Section
  501.002, Transportation Code.
         (b)  For purposes of Subsection (a)(1)(B)(ii) [(a)(2)(B)], a
  person is controlled by a manufacturer if the manufacturer is
  directly or indirectly authorized, by law or by agreement of the
  parties, to direct or influence the person's management and
  policies.
         (c)  Except as provided by this section, a manufacturer or
  distributor may not directly or indirectly:
               (1)  own an interest in:
                     (A)  a franchised dealer or dealership, as defined
  by Sections 2301.002(16) and (8), respectively, for the same type
  of motor vehicle that:
                           (i)  the manufacturer manufactures or
  distributes; or
                           (ii)  the distributor distributes; or
                     (B)  a nonfranchised dealer or dealership;
               (2)  operate or control:
                     (A)  a franchised dealer or dealership, as defined
  by Sections 2301.002(16) and (8), respectively, for the same type
  of motor vehicle that:
                           (i)  the manufacturer manufactures or
  distributes; or 
                           (ii)  the distributor distributes; or
                     (B)  a nonfranchised dealer or dealership; or
               (3)  act in the capacity of:
                     (A)  a franchised dealer or dealership, as defined
  by Sections 2301.002(16) and (8), respectively, for the same type
  of motor vehicle that:
                           (i)  the manufacturer manufactures or
  distributes; or 
                           (ii)  the distributor distributes; or
                     (B)  a nonfranchised dealer.
         SECTION 2.  This Act takes effect September 1, 2019.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1415 passed the Senate on
  April 23, 2019, by the following vote:  Yeas 30, Nays 1.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1415 passed the House on May
  17, 2019, by the following vote:  Yeas 142, Nays 0, two present not
  voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor