| 1 | 1 | | 85R5999 BEE-F |
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| 2 | 2 | | By: Hall S.B. No. 2093 |
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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 regulation of motor vehicle dealers, manufacturers, |
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| 8 | 8 | | and 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 503.001, Transportation Code, is amended |
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| 11 | 11 | | by amending Subdivisions (4) and (9) and adding Subdivision (10-a) |
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| 12 | 12 | | to read as follows: |
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| 13 | 13 | | (4) "Dealer" means a person who regularly and actively |
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| 14 | 14 | | buys, sells, or exchanges vehicles at an established and permanent |
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| 15 | 15 | | location. The term includes a franchised motor vehicle dealer, an |
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| 16 | 16 | | independent motor vehicle dealer, an independent mobility motor |
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| 17 | 17 | | vehicle dealer, [and] a wholesale motor vehicle dealer, and a |
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| 18 | 18 | | manufacturer motor vehicle dealer. |
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| 19 | 19 | | (9) "Independent motor vehicle dealer" means a dealer |
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| 20 | 20 | | other than a franchised motor vehicle dealer, an independent |
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| 21 | 21 | | mobility motor vehicle dealer, [or] a wholesale motor vehicle |
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| 22 | 22 | | dealer, or a manufacturer motor vehicle dealer. |
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| 23 | 23 | | (10-a) "Manufacturer motor vehicle dealer" means a |
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| 24 | 24 | | manufacturer who, at an established and permanent location, |
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| 25 | 25 | | regularly and actively buys, sells, or exchanges motor vehicles of |
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| 26 | 26 | | a line make the manufacturer manufactures, distributes, or |
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| 27 | 27 | | assembles. |
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| 28 | 28 | | SECTION 2. Section 503.029(a), Transportation Code, is |
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| 29 | 29 | | amended to read as follows: |
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| 30 | 30 | | (a) An applicant for an original or renewal dealer general |
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| 31 | 31 | | distinguishing number must submit to the department a written |
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| 32 | 32 | | application on a form that: |
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| 33 | 33 | | (1) is provided by the department; |
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| 34 | 34 | | (2) contains the information required by the |
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| 35 | 35 | | department; |
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| 36 | 36 | | (3) contains information that demonstrates the person |
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| 37 | 37 | | meets the requirements prescribed by Section 503.032; |
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| 38 | 38 | | (4) contains information that demonstrates the |
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| 39 | 39 | | applicant has complied with all applicable state laws and municipal |
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| 40 | 40 | | ordinances; |
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| 41 | 41 | | (5) states that the applicant agrees to allow the |
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| 42 | 42 | | department to examine during working hours the ownership papers for |
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| 43 | 43 | | each registered or unregistered vehicle in the applicant's |
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| 44 | 44 | | possession or control; and |
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| 45 | 45 | | (6) specifies whether the applicant proposes to be a: |
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| 46 | 46 | | (A) franchised motor vehicle dealer; |
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| 47 | 47 | | (B) independent motor vehicle dealer; |
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| 48 | 48 | | (C) wholesale motor vehicle dealer; |
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| 49 | 49 | | (D) motorcycle dealer; |
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| 50 | 50 | | (E) house trailer dealer; |
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| 51 | 51 | | (F) trailer or semitrailer dealer; [or] |
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| 52 | 52 | | (G) independent mobility motor vehicle dealer; |
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| 53 | 53 | | or |
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| 54 | 54 | | (H) manufacturer motor vehicle dealer. |
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| 55 | 55 | | SECTION 3. Section 503.036(a), Transportation Code, is |
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| 56 | 56 | | amended to read as follows: |
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| 57 | 57 | | (a) The holder of a franchised motor vehicle dealer's |
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| 58 | 58 | | general distinguishing number or manufacturer motor vehicle |
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| 59 | 59 | | dealer's general distinguishing number may buy, sell, or exchange |
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| 60 | 60 | | new or used motor vehicles and reassign a manufacturer's |
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| 61 | 61 | | certificate of origin, certificate of title, or other basic |
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| 62 | 62 | | evidence of ownership of any type of vehicle owned by the dealer |
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| 63 | 63 | | that the dealer is not otherwise prohibited by law from selling or |
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| 64 | 64 | | offering for sale. |
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| 65 | 65 | | SECTION 4. Section 2301.002(25), Occupations Code, is |
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| 66 | 66 | | amended to read as follows: |
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| 67 | 67 | | (25) "Nonfranchised dealer" means a person who holds |
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| 68 | 68 | | an independent motor vehicle dealer's general distinguishing |
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| 69 | 69 | | number, an independent mobility motor vehicle dealer's general |
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| 70 | 70 | | distinguishing number, [or] a wholesale motor vehicle dealer's |
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| 71 | 71 | | general distinguishing number, or a manufacturer motor vehicle |
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| 72 | 72 | | dealer's general distinguishing number issued by the board under |
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| 73 | 73 | | Chapter 503, Transportation Code. |
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| 74 | 74 | | SECTION 5. Section 2301.252(a), Occupations Code, is |
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| 75 | 75 | | amended to read as follows: |
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| 76 | 76 | | (a) A person may not engage in the business of buying, |
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| 77 | 77 | | selling, or exchanging new motor vehicles unless the person: |
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| 78 | 78 | | (1) holds a franchised dealer's license issued under |
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| 79 | 79 | | this chapter for the make of new motor vehicle being bought, sold, |
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| 80 | 80 | | or exchanged; |
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| 81 | 81 | | (2) holds a manufacturer motor vehicle dealer's |
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| 82 | 82 | | general distinguishing number issued by the board under Chapter |
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| 83 | 83 | | 503, Transportation Code; or |
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| 84 | 84 | | (3) [(2)] is a bona fide employee of: |
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| 85 | 85 | | (A) the holder of a franchised dealer's license; |
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| 86 | 86 | | or |
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| 87 | 87 | | (B) the holder of a manufacturer motor vehicle |
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| 88 | 88 | | dealer's general distinguishing number issued by the board under |
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| 89 | 89 | | Chapter 503, Transportation Code. |
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| 90 | 90 | | SECTION 6. Section 2301.476, Occupations Code, is repealed. |
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| 91 | 91 | | SECTION 7. This Act takes effect September 1, 2017. |
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