Texas 2013 - 83rd Regular

Texas Senate Bill SB854 Compare Versions

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1	1	By: Van de Putte S.B. No. 854
2	2	(Harper-Brown)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of motor vehicle dealers, manufacturers,
8	8	distributors, and representatives.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter J, Chapter 2301, Occupations Code, is
11	11	amended by adding Section 2301.483 to read as follows:
12	12	Sec. 2301.483. SPECIFIC USE AGREEMENTS. (a) In this
13	13	section:
14	14	(1) "Necessary real estate" means real estate that is
15	15	necessary for the proper operation of a dealership in the
16	16	dealership's location as determined by the manufacturer's,
17	17	distributor's, or representative's facility requirements or to
18	18	comply with any applicable law or zoning requirement.
19	19	(2) "Owner" means a manufacturer, distributor, or
20	20	representative, including an entity owned or controlled by a
21	21	manufacturer, distributor, or representative.
22	22	(3) "Specific use agreement" means a property use
23	23	agreement that is executed in conjunction with a sale or as part of
24	24	the terms of a lease by an owner of real property to a transferee for
25	25	use by the transferee as a dealership under the terms of a franchise
26	26	executed or to be executed between the owner and the transferee.
27	27	(4) "Transferee" means a person who is a purchaser or
28	28	lessee of real property subject to a specific use agreement.
29	29	(b) To the extent of any conflict between this section and
30	30	another section of this chapter regarding a specific use agreement,
31	31	this section controls. Notwithstanding any other section of this
32	32	chapter and except as provided by this section, a specific use
33	33	agreement may include provisions that allow an owner to:
34	34	(1) limit the transferee's ability to add a line-make
35	35	after the transferee has opened a franchised dealership on the
36	36	property to which the specific use agreement applies;
37	37	(2) prohibit the sale or sublease of the dealership
38	38	property by the transferee to a person for a purpose other than the
39	39	operation of a dealership under a franchise with the owner of the
40	40	property; or
41	41	(3) make the limitations described by Subdivisions (1)
42	42	and (2) applicable to any successor or sublessee of the transferee.
43	43	(c) An owner may not coerce or attempt to coerce an existing
44	44	franchised dealer of the owner to relocate an existing dealership
45	45	of the same line-make to property that is subject to a specific use
46	46	agreement. If it is proven in a civil suit that a person entered
47	47	into a specific use agreement containing a provision described by
48	48	Subsection (b) as a result of coercion, the specific use agreement
49	49	is void.
50	50	(d) A specific use agreement executed in conjunction with
51	51	the sale of real property may apply only to the necessary real
52	52	estate.
53	53	(e) A specific use agreement executed in conjunction with
54	54	the sale of real property to an existing franchised dealer for the
55	55	purpose of relocating an existing dealership of the same line-make
56	56	to property that is the subject of the specific use agreement or to
57	57	a person for the purpose of establishing a new dealership expires on
58	58	the earliest of:
59	59	(1) the date established by the specific use
60	60	agreement;
61	61	(2) the termination or discontinuance of the franchise
62	62	between the parties to the specific use agreement as a result of the
63	63	owner:
64	64	(A) discontinuing all line-makes applicable to
65	65	the necessary real estate that are under the control of a
66	66	manufacturer or distributor holding property use rights for the
67	67	necessary real estate under the specific use agreement;
68	68	(B) ceasing to do business in this state; or
69	69	(C) changing the distributor or method of
70	70	distribution of the owner's products in this state;
71	71	(3) the 10th anniversary of the date the dealership
72	72	opens for business; or
73	73	(4) any time after the expiration of nine years from
74	74	the date the dealership opens for business if the transferee has
75	75	performed all the transferee's financial duties as provided by the
76	76	contract and title to the property has passed to the transferee.
77	77	(f) Unless a specific use agreement associated with the sale
78	78	of property expressly provides otherwise, there is no penalty for
79	79	the full performance by the transferee and transfer of title to the
80	80	transferee prior to the time set forth by the contract's terms.
81	81	SECTION 2. Subsection (d), Section 2301.6521, Occupations
82	82	Code, is amended to read as follows:
83	83	(d) A franchised dealer may not protest an application to
84	84	relocate a dealership under this section if the proposed relocation
85	85	site is not:
86	86	(1) more than two miles [or less] from the site where
87	87	the dealership is currently located; or
88	88	(2) closer to the franchised dealer than the site from
89	89	which the dealership is being relocated [dealership's current
90	90	location].
91	91	SECTION 3. Section 2301.483, Occupations Code, as added by
92	92	this Act, applies only to an agreement entered into or renewed under
93	93	Chapter 2301, Occupations Code, on or after the effective date of
94	94	this Act. An agreement entered into or renewed before that date is
95	95	governed by the law in effect on the date the agreement was entered
96	96	into or renewed, and the former law is continued in effect for that
97	97	purpose.
98	98	SECTION 4. Subsection (d), Section 2301.6521, Occupations
99	99	Code, as amended by this Act, applies only to an application to
100	100	relocate a dealership that is made on or after the effective date of
101	101	this Act. An application made before that date is governed by the
102	102	law in effect on the date the application was made, and the former
103	103	law is continued in effect for that purpose.
104	104	SECTION 5. This Act takes effect immediately if it receives
105	105	a vote of two-thirds of all the members elected to each house, as
106	106	provided by Section 39, Article III, Texas Constitution. If this
107	107	Act does not receive the vote necessary for immediate effect, this
108	108	Act takes effect September 1, 2013.