By: Guillen H.B. No. 4405
A BILL TO BE ENTITLED
AN ACT
relating to the requirement that certain applicants for a vehicle
dealer general distinguishing number complete a dealer education
course.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 503.029, Transportation Code, is amended
by adding Subsections (d), (e), and (f) to read as follows:
(d) An applicant for an original dealer general
distinguishing number who proposes to be an independent motor
vehicle dealer and who does not hold a general distinguishing
number as a franchised motor vehicle dealer or independent motor
vehicle dealer shall submit to the department evidence that the
applicant completed, in the 24-month period before the date the
application is filed, a dealer education course approved by the
department. The course must be not less than 8 hours and not more
than 12 hours in length. If the applicant is an entity, the course
must be completed by one individual listed on the application as an
owner, manager, officer, or director of the entity.
(e) The department may approve a dealer education course
under Subsection (d) only if:
(1) the provider of the course is:
(A) an institution of higher education as defined
by Section 61.003, Education Code; or
(B) a professional or trade association in the
field of motor vehicle sales domiciled in this state that:
(i) has been in business for at least five
years; and
(ii) has, as a majority of its membership,
members who are motor vehicle dealers licensed in this state;
(2) the course curriculum, materials, and instructors
satisfy any applicable department requirements;
(3) the course includes instruction in federal and
state laws and department rules applicable to independent motor
vehicle dealers;
(4) the cost per course participant does not exceed:
(A) $150 for a course offered online; or
(B) $200 for a course offered through classroom
instruction; and
(5) on successful completion of the course, a course
participant receives a certificate of completion from the course
provider.
(f) An applicant is not required to comply with Subsection
(d) if, at the time the application is submitted, an online dealer
education course is not currently approved by the department.
SECTION 2. Section 503.029(d), Transportation Code, as
added by this Act, applies only to an application for an original
dealer general distinguishing number filed with the Texas
Department of Motor Vehicles on or after September 1, 2020. An
application filed before that date is governed by the law in effect
immediately before the effective date of this Act, and the former
law is continued in effect for that purpose.
SECTION 3. Not later than January 1, 2020, the Texas
Department of Motor Vehicles shall begin accepting applications for
approval from providers of dealer education courses in accordance
with Sections 503.029(d) and (e), Transportation Code, as added by
this Act.
SECTION 4. This Act takes effect September 1, 2019.