| 7 | 3 | | |
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| 8 | 4 | | |
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| 9 | 5 | | A BILL TO BE ENTITLED |
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| 10 | 6 | | AN ACT |
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| 11 | 7 | | relating to the ownership, control, or operation of a franchised or |
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| 12 | 8 | | nonfranchised dealer or dealership by certain manufacturers. |
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| 13 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 10 | | SECTION 1. Section 2301.476, Occupations Code, is amended |
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| 15 | 11 | | by adding Subsection (a-1) and amending Subsection (c) to read as |
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| 16 | 12 | | follows: |
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| 17 | 13 | | (a-1) For purposes of this section, "type of motor vehicle" |
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| 18 | 14 | | means: |
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| 19 | 15 | | (1) a passenger car that is a motor vehicle or a |
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| 20 | 16 | | light-duty truck in Class 1, 2, or 3, other than a motorcycle or |
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| 21 | 17 | | motor-driven cycle, primarily used to transport persons and |
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| 22 | 18 | | designed to accommodate 10 or fewer passengers, including the |
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| 23 | 19 | | operator; |
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| 24 | 20 | | (2) a motorcycle or motor-driven cycle as defined by |
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| 25 | 21 | | Section 541.201, Transportation Code; |
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| 26 | 22 | | (3) an engine, transmission, or rear axle described by |
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| 27 | 23 | | Section 2301.002(23)(C); |
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| 28 | 24 | | (4) a truck, including a medium-duty or heavy-duty |
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| 29 | 25 | | truck that is in Class 4, 5, 6, 7, or 8; |
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| 30 | 26 | | (5) a bus that is a motor vehicle used to transport |
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| 31 | 27 | | persons and designed to accommodate more than 10 passengers, |
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| 32 | 28 | | including the operator; |
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| 33 | 29 | | (6) a road tractor or truck tractor as defined by |
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| 34 | 30 | | Section 541.201, Transportation Code; |
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| 35 | 31 | | (7) a fire-fighting vehicle; or |
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| 36 | 32 | | (8) a recreational vehicle, including a motor home, a |
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| 37 | 33 | | towable recreational vehicle, or a travel trailer or house trailer |
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| 38 | 34 | | as defined by Section 501.002, Transportation Code. |
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| 39 | 35 | | (c) Except as provided by this section, a manufacturer or |
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| 40 | 36 | | distributor may not directly or indirectly: |
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| 41 | 37 | | (1) own an interest in a franchised or nonfranchised |
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| 42 | 38 | | dealer or dealership that sells or services the same type of motor |
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| 43 | 39 | | vehicle that it manufactures or distributes; |
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| 44 | 40 | | (2) operate or control: |
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| 45 | 41 | | (A) a [franchised or nonfranchised] dealer or |
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| 46 | 42 | | dealership franchised to sell or service the same type of motor |
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| 47 | 43 | | vehicle that it manufactures or distributes; or |
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| 48 | 44 | | (B) a nonfranchised dealer or dealership; or |
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| 49 | 45 | | (3) act in the capacity of: |
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| 50 | 46 | | (A) a [franchised or nonfranchised] dealer or |
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| 51 | 47 | | dealership franchised to sell or service the same type of motor |
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| 52 | 48 | | vehicle that it manufactures or distributes; or |
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| 53 | 49 | | (B) a nonfranchised dealer. |
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| 54 | 50 | | SECTION 2. This Act takes effect September 1, 2017. |
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