84R9491 MAW-F
By: Rodriguez of Travis H.B. No. 1653
A BILL TO BE ENTITLED
AN ACT
relating to the ownership or operation of a motor vehicle
dealership by certain manufacturers or distributors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2301.252(a), Occupations Code, is
amended to read as follows:
(a) A person may not engage in the business of buying,
selling, or exchanging new motor vehicles unless the person:
(1) holds a franchised dealer's license issued under
this chapter for the make of new motor vehicle being bought, sold,
or exchanged[;] or
[(2)] is a bona fide employee of the holder of a
franchised dealer's license; or
(2) is a manufacturer or distributor described by
Section 2301.476(i-1) or is a bona fide employee of the
manufacturer or distributor.
SECTION 2. Section 2301.476, Occupations Code, is amended
by adding Subsection (i-1) to read as follows:
(i-1) Notwithstanding any other provision of this chapter,
a manufacturer or distributor may own or operate a dealership, may
own, operate, or otherwise act in the capacity of a dealer, and may
obtain a dealer general distinguishing number if:
(1) the manufacturer or distributor does not own or
operate more than 12 dealers or dealership locations in this state;
and
(2) the manufacturer's line-make has never been sold
in this state through an independent franchised new motor vehicle
dealership.
SECTION 3. Section 503.029(a), Transportation Code, is
amended to read as follows:
(a) An applicant for an original or renewal dealer general
distinguishing number must submit to the department a written
application on a form that:
(1) is provided by the department;
(2) contains the information required by the
department;
(3) contains information that demonstrates the person
meets the requirements prescribed by Section 503.032;
(4) contains information that demonstrates the
applicant has complied with all applicable state laws and municipal
ordinances;
(5) states that the applicant agrees to allow the
department to examine during working hours the ownership papers for
each registered or unregistered vehicle in the applicant's
possession or control; and
(6) specifies whether the applicant proposes to be a:
(A) franchised motor vehicle dealer;
(B) independent motor vehicle dealer;
(C) wholesale motor vehicle dealer;
(D) motorcycle dealer;
(E) house trailer dealer;
(F) trailer or semitrailer dealer; [or]
(G) independent mobility motor vehicle dealer;
or
(H) manufacturer or distributor described by
Section 2301.476(i-1), Occupations Code.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.