| 1 | 1 | | 84R9491 MAW-F |
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| 2 | 2 | | By: Hancock S.B. No. 639 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the ownership or operation of a motor vehicle |
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| 8 | 8 | | dealership by certain manufacturers or distributors. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 2301.252(a), Occupations Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (a) A person may not engage in the business of buying, |
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| 13 | 13 | | selling, or exchanging new motor vehicles unless the person: |
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| 14 | 14 | | (1) holds a franchised dealer's license issued under |
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| 15 | 15 | | this chapter for the make of new motor vehicle being bought, sold, |
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| 16 | 16 | | or exchanged[;] or |
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| 17 | 17 | | [(2)] is a bona fide employee of the holder of a |
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| 18 | 18 | | franchised dealer's license; or |
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| 19 | 19 | | (2) is a manufacturer or distributor described by |
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| 20 | 20 | | Section 2301.476(i-1) or is a bona fide employee of the |
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| 21 | 21 | | manufacturer or distributor. |
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| 22 | 22 | | SECTION 2. Section 2301.476, Occupations Code, is amended |
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| 23 | 23 | | by adding Subsection (i-1) to read as follows: |
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| 24 | 24 | | (i-1) Notwithstanding any other provision of this chapter, |
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| 25 | 25 | | a manufacturer or distributor may own or operate a dealership, may |
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| 26 | 26 | | own, operate, or otherwise act in the capacity of a dealer, and may |
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| 27 | 27 | | obtain a dealer general distinguishing number if: |
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| 28 | 28 | | (1) the manufacturer or distributor does not own or |
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| 29 | 29 | | operate more than 12 dealers or dealership locations in this state; |
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| 30 | 30 | | and |
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| 31 | 31 | | (2) the manufacturer's line-make has never been sold |
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| 32 | 32 | | in this state through an independent franchised new motor vehicle |
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| 33 | 33 | | dealership. |
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| 34 | 34 | | SECTION 3. Section 503.029(a), Transportation Code, is |
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| 35 | 35 | | amended to read as follows: |
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| 36 | 36 | | (a) An applicant for an original or renewal dealer general |
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| 37 | 37 | | distinguishing number must submit to the department a written |
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| 38 | 38 | | application on a form that: |
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| 39 | 39 | | (1) is provided by the department; |
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| 40 | 40 | | (2) contains the information required by the |
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| 41 | 41 | | department; |
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| 42 | 42 | | (3) contains information that demonstrates the person |
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| 43 | 43 | | meets the requirements prescribed by Section 503.032; |
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| 44 | 44 | | (4) contains information that demonstrates the |
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| 45 | 45 | | applicant has complied with all applicable state laws and municipal |
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| 46 | 46 | | ordinances; |
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| 47 | 47 | | (5) states that the applicant agrees to allow the |
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| 48 | 48 | | department to examine during working hours the ownership papers for |
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| 49 | 49 | | each registered or unregistered vehicle in the applicant's |
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| 50 | 50 | | possession or control; and |
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| 51 | 51 | | (6) specifies whether the applicant proposes to be a: |
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| 52 | 52 | | (A) franchised motor vehicle dealer; |
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| 53 | 53 | | (B) independent motor vehicle dealer; |
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| 54 | 54 | | (C) wholesale motor vehicle dealer; |
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| 55 | 55 | | (D) motorcycle dealer; |
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| 56 | 56 | | (E) house trailer dealer; |
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| 57 | 57 | | (F) trailer or semitrailer dealer; [or] |
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| 58 | 58 | | (G) independent mobility motor vehicle dealer; |
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| 59 | 59 | | or |
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| 60 | 60 | | (H) manufacturer or distributor described by |
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| 61 | 61 | | Section 2301.476(i-1), Occupations Code. |
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| 62 | 62 | | SECTION 4. This Act takes effect immediately if it receives |
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| 63 | 63 | | a vote of two-thirds of all the members elected to each house, as |
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| 64 | 64 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 65 | 65 | | Act does not receive the vote necessary for immediate effect, this |
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| 66 | 66 | | Act takes effect September 1, 2015. |
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