Texas 2019 - 86th Regular

Texas House Bill HB2940 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	86R10149 BEE-F
1	2		By: Geren H.B. No. 2940
2		-	Substitute the following for H.B. No. 2940:
3		-	By: Geren C.S.H.B. No. 2940
4	3
5	4
6	5		A BILL TO BE ENTITLED
7	6		AN ACT
8	7		relating to the ownership, control, or operation of a franchised or
9	8		nonfranchised dealer or dealership by certain motor vehicle
10	9		manufacturers and distributors.
11	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	11		SECTION 1. Sections 2301.476(a), (b), and (c), Occupations
13	12		Code, are amended to read as follows:
14	13		(a) In this section:
15	14		(1) "Manufacturer"[, "manufacturer"] includes:
16	15		(A) [(1)] a representative; or
17	16		(B) [(2)] a person who:
18	17		(i) [(A)] is affiliated with a manufacturer
19	18		or representative; or
20	19		(ii) [(B)] directly or indirectly through
21	20		an intermediary, is controlled by, or is under common control with,
22	21		a manufacturer.
23	22		(2) "Type of motor vehicle" means the classification
24	23		of a motor vehicle as one of the following:
25	24		(A) a passenger car or a truck, including a
26	25		pickup truck, van, panel delivery truck, or a carryall truck, with a
27	26		gross vehicle weight rating of 14,000 pounds or less that is used
28	27		primarily to transport persons or property;
29	28		(B) a motorcycle or motor-driven cycle, which
30	29		includes:
31	30		(i) an all-terrain vehicle, as defined by
32	31		Section 502.001, Transportation Code;
33	32		(ii) a recreational off-highway vehicle, as
34	33		defined by Section 502.001, Transportation Code;
35	34		(iii) an autocycle, as defined by Section
36	35		501.008, Transportation Code;
37	36		(iv) a moped, as defined by Section
38	37		541.201, Transportation Code;
39	38		(v) a motorcycle, as defined by Section
40	39		541.201, Transportation Code; or
41	40		(vi) a motor-driven cycle, as defined by
42	41		Section 541.201, Transportation Code;
43	42		(C) an engine, transmission, or rear axle, as
44	43		described by Section 2301.002(23)(C);
45	44		(D) a medium-duty or heavy-duty truck with a
46	45		gross vehicle weight rating of more than 14,000 pounds;
47	46		(E) a bus, as defined by Section 541.201,
48	47		Transportation Code;
49	48		(F) a road tractor or truck tractor, as defined
50	49		by Section 541.201, Transportation Code;
51	50		(G) a firefighting vehicle; or
52	51		(H) a recreational vehicle, which includes:
53	52		(i) a motor home;
54	53		(ii) a towable recreational vehicle;
55	54		(iii) a travel trailer, as defined by
56	55		Section 501.002, Transportation Code; or
57	56		(iv) a house trailer, as defined by Section
58	57		501.002, Transportation Code.
59	58		(b) For purposes of Subsection (a)(1)(B)(ii) [(a)(2)(B)], a
60	59		person is controlled by a manufacturer if the manufacturer is
61	60		directly or indirectly authorized, by law or by agreement of the
62	61		parties, to direct or influence the person's management and
63	62		policies.
64	63		(c) Except as provided by this section, a manufacturer or
65	64		distributor may not directly or indirectly:
66	65		(1) own an interest in:
67		-	(A) a franchised dealer or dealership, as defined
68		-	by Sections 2301.002(16) and (8), respectively, for the same type
69		-	of motor vehicle that:
70		-	(i) the manufacturer manufactures or
71		-	distributes; or
72		-	(ii) the distributor distributes; or
	66	+	(A) a franchised [or nonfranchised] dealer or
	67	+	dealership, the business of which includes buying, selling,
	68	+	exchanging, servicing, or repairing the same type of motor vehicle
	69	+	that the manufacturer or distributor manufactures or distributes;
	70	+	or
73	71		(B) a nonfranchised dealer or dealership;
74	72		(2) operate or control:
75		-	(A) a franchised dealer or dealership, as defined
76		-	by Sections 2301.002(16) and (8), respectively, for the same type
77		-	of motor vehicle that:
78		-	(i) the manufacturer manufactures or
79		-	distributes; or
80		-	(ii) the distributor distributes; or
	73	+	(A) a franchised [or nonfranchised] dealer or
	74	+	dealership, the business of which includes buying, selling,
	75	+	exchanging, servicing, or repairing the same type of motor vehicle
	76	+	that the manufacturer or distributor manufactures or distributes;
	77	+	or
81	78		(B) a nonfranchised dealer or dealership; or
82	79		(3) act in the capacity of:
83		-	(A) a franchised dealer or dealership, as defined
84		-	by Sections 2301.002(16) and (8), respectively, for the same type
85		-	of motor vehicle that:
86		-	(i) the manufacturer manufactures or
87		-	distributes; or
88		-	(ii) the distributor distributes; or
	80	+	(A) a franchised [or nonfranchised] dealer or
	81	+	dealership, the business of which includes buying, selling,
	82	+	exchanging, servicing, or repairing the same type of motor vehicle
	83	+	that the manufacturer or distributor manufactures or distributes;
	84	+	or
89	85		(B) a nonfranchised dealer.
90	86		SECTION 2. This Act takes effect September 1, 2019.