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A BILL TO BE ENTITLED
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AN ACT
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relating to the ownership, control, or operation of a franchised or |
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nonfranchised dealer or dealership by certain motor vehicle |
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manufacturers and distributors. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 2301.476(a), (b), and (c), Occupations |
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Code, are amended to read as follows: |
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(a) In this section: |
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(1) "Manufacturer"[, "manufacturer"] includes: |
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(A) [(1)] a representative; or |
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(B) [(2)] a person who: |
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(i) [(A)] is affiliated with a manufacturer |
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or representative; or |
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(ii) [(B)] directly or indirectly through |
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an intermediary, is controlled by, or is under common control with, |
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a manufacturer. |
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(2) "Type of motor vehicle" means the classification |
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of a motor vehicle as one of the following: |
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(A) a passenger car or a truck, including a |
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pickup truck, van, panel delivery truck, or a carryall truck, with a |
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gross vehicle weight rating of 14,000 pounds or less that is used |
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primarily to transport persons or property; |
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(B) a motorcycle or motor-driven cycle, which |
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includes: |
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(i) an all-terrain vehicle, as defined by |
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Section 502.001, Transportation Code; |
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(ii) a recreational off-highway vehicle, as |
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defined by Section 502.001, Transportation Code; |
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(iii) an autocycle, as defined by Section |
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501.008, Transportation Code; |
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(iv) a moped, as defined by Section |
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541.201, Transportation Code; |
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(v) a motorcycle, as defined by Section |
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541.201, Transportation Code; or |
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(vi) a motor-driven cycle, as defined by |
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Section 541.201, Transportation Code; |
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(C) an engine, transmission, or rear axle, as |
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described by Section 2301.002(23)(C); |
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(D) a medium-duty or heavy-duty truck with a |
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gross vehicle weight rating of more than 14,000 pounds; |
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(E) a bus, as defined by Section 541.201, |
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Transportation Code; |
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(F) a road tractor or truck tractor, as defined |
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by Section 541.201, Transportation Code; |
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(G) a firefighting vehicle; or |
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(H) a recreational vehicle, which includes: |
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(i) a motor home; |
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(ii) a towable recreational vehicle; |
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(iii) a travel trailer, as defined by |
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Section 501.002, Transportation Code; or |
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(iv) a house trailer, as defined by Section |
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501.002, Transportation Code. |
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(b) For purposes of Subsection (a)(1)(B)(ii) [(a)(2)(B)], a |
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person is controlled by a manufacturer if the manufacturer is |
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directly or indirectly authorized, by law or by agreement of the |
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parties, to direct or influence the person's management and |
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policies. |
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(c) Except as provided by this section, a manufacturer or |
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distributor may not directly or indirectly: |
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(1) own an interest in: |
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(A) a franchised dealer or dealership, as defined |
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by Sections 2301.002(16) and (8), respectively, for the same type |
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of motor vehicle that: |
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(i) the manufacturer manufactures or |
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distributes; or |
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(ii) the distributor distributes; or |
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(B) a nonfranchised dealer or dealership; |
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(2) operate or control: |
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(A) a franchised dealer or dealership, as defined |
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by Sections 2301.002(16) and (8), respectively, for the same type |
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of motor vehicle that: |
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(i) the manufacturer manufactures or |
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distributes; or |
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(ii) the distributor distributes; or |
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(B) a nonfranchised dealer or dealership; or |
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(3) act in the capacity of: |
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(A) a franchised dealer or dealership, as defined |
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by Sections 2301.002(16) and (8), respectively, for the same type |
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of motor vehicle that: |
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(i) the manufacturer manufactures or |
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distributes; or |
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(ii) the distributor distributes; or |
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(B) a nonfranchised dealer. |
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SECTION 2. This Act takes effect September 1, 2019. |