BILL ANALYSIS

Senate Research Center	C.S.S.B. 1113
89R24705 BEE-D	By: Hughes
	Business & Commerce
	4/30/2025
	Committee Report (Substituted)

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In recent years, there has been confusion on converter licenses and the potential requirement of additional licenses by the Department of Motor Vehicles for companies converting chassis and trailers.

S.B. 1113 clarifies the statute and does not require a person to hold an additional license or distinguishing number to sell for a retail purchaser, which has been common practice for the past 80 years.

(Original Author's/Sponsor's Statement of Intent)

C.S.S.B. 1113 amends current law relating to certain retail sales of motor vehicles, trailers, and semitrailers by a holder of a converter's license.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2301.476, Occupations Code, by adding Subsections (h-2) and (h-3), as follows:

(h-2) Provides that this subsection and Subsection (h-3) apply only in a county that has a river as a border with two other states. Provides that a person who holds a converter's license and has a physical presence in a county to which this subsection applies, notwithstanding any other law, is not required to hold any additional license or general distinguishing number to sell to a retail purchaser:

(1) a new motor vehicle the person converted, if the motor vehicle is a motor vehicle described by certain provisions and the vehicle manufacturer transferred the chassis and the manufacturer's statement of origin to the person; or

(2) a trailer or semitrailer, as those terms are defined by Section 502.001 (Definitions), Transportation Code, that the person manufactured.

(h-3) Requires a person who sells a new motor vehicle or trailer or semitrailer to a retail purchaser as described by Subsection (h-2) to be considered a dealer with respect to any responsibility or obligation of a dealer of that type of vehicle to the retail purchaser under Chapter 2301 (Sale or Lease of Motor Vehicles) or Subtitle A (Certificates of Title and Registration of Vehicles), Title 7 (Vehicles and Traffic), Transportation Code.

SECTION 2. Effective date: upon passage or September 1, 2025.