By: Hancock S.B. No. 2279
(In the Senate - Filed April 18, 2017; April 18, 2017, read
first time and referred to Committee on Business & Commerce;
April 20, 2017, reported favorably by the following vote: Yeas 7,
Nays 0; April 20, 2017, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the ownership, control, or operation of a franchised or
nonfranchised dealer or dealership by certain manufacturers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2301.476, Occupations Code, is amended
by adding Subsection (a-1) and amending Subsection (c) to read as
follows:
(a-1) For purposes of this section, "type of motor vehicle"
means:
(1) a passenger car that is a motor vehicle or a
light-duty truck in Class 1, 2, or 3, other than a motorcycle or
motor-driven cycle, primarily used to transport persons and
designed to accommodate 10 or fewer passengers, including the
operator;
(2) a motorcycle or motor-driven cycle as defined by
Section 541.201, Transportation Code;
(3) an engine, transmission, or rear axle described by
Section 2301.002(23)(C);
(4) a truck, including a medium-duty or heavy-duty
truck that is in Class 4, 5, 6, 7, or 8;
(5) a bus that is a motor vehicle used to transport
persons and designed to accommodate more than 10 passengers,
including the operator;
(6) a road tractor or truck tractor as defined by
Section 541.201, Transportation Code;
(7) a fire-fighting vehicle; or
(8) a recreational vehicle, including a motor home, a
towable recreational vehicle, or a travel trailer or house trailer
as defined by Section 501.002, Transportation Code.
(c) Except as provided by this section, a manufacturer or
distributor may not directly or indirectly:
(1) own an interest in a franchised or nonfranchised
dealer or dealership that sells or services the same type of motor
vehicle that it manufactures or distributes;
(2) operate or control:
(A) a [franchised or nonfranchised] dealer or
dealership franchised to sell or service the same type of motor
vehicle that it manufactures or distributes; or
(B) a nonfranchised dealer or dealership; or
(3) act in the capacity of:
(A) a [franchised or nonfranchised] dealer or
dealership franchised to sell or service the same type of motor
vehicle that it manufactures or distributes; or
(B) a nonfranchised dealer.
SECTION 2. This Act takes effect September 1, 2017.
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