| 1 | 1 | | By: Guillen H.B. No. 4405 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the requirement that certain applicants for a vehicle |
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| 7 | 7 | | dealer general distinguishing number complete a dealer education |
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| 8 | 8 | | course. |
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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 503.029, Transportation Code, is amended |
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| 11 | 11 | | by adding Subsections (d), (e), and (f) to read as follows: |
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| 12 | 12 | | (d) An applicant for an original dealer general |
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| 13 | 13 | | distinguishing number who proposes to be an independent motor |
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| 14 | 14 | | vehicle dealer and who does not hold a general distinguishing |
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| 15 | 15 | | number as a franchised motor vehicle dealer or independent motor |
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| 16 | 16 | | vehicle dealer shall submit to the department evidence that the |
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| 17 | 17 | | applicant completed, in the 24-month period before the date the |
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| 18 | 18 | | application is filed, a dealer education course approved by the |
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| 19 | 19 | | department. The course must be not less than 8 hours and not more |
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| 20 | 20 | | than 12 hours in length. If the applicant is an entity, the course |
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| 21 | 21 | | must be completed by one individual listed on the application as an |
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| 22 | 22 | | owner, manager, officer, or director of the entity. |
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| 23 | 23 | | (e) The department may approve a dealer education course |
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| 24 | 24 | | under Subsection (d) only if: |
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| 25 | 25 | | (1) the provider of the course is: |
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| 26 | 26 | | (A) an institution of higher education as defined |
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| 27 | 27 | | by Section 61.003, Education Code; or |
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| 28 | 28 | | (B) a professional or trade association in the |
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| 29 | 29 | | field of motor vehicle sales domiciled in this state that: |
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| 30 | 30 | | (i) has been in business for at least five |
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| 31 | 31 | | years; and |
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| 32 | 32 | | (ii) has, as a majority of its membership, |
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| 33 | 33 | | members who are motor vehicle dealers licensed in this state; |
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| 34 | 34 | | (2) the course curriculum, materials, and instructors |
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| 35 | 35 | | satisfy any applicable department requirements; |
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| 36 | 36 | | (3) the course includes instruction in federal and |
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| 37 | 37 | | state laws and department rules applicable to independent motor |
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| 38 | 38 | | vehicle dealers; |
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| 39 | 39 | | (4) the cost per course participant does not exceed: |
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| 40 | 40 | | (A) $150 for a course offered online; or |
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| 41 | 41 | | (B) $200 for a course offered through classroom |
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| 42 | 42 | | instruction; and |
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| 43 | 43 | | (5) on successful completion of the course, a course |
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| 44 | 44 | | participant receives a certificate of completion from the course |
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| 45 | 45 | | provider. |
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| 46 | 46 | | (f) An applicant is not required to comply with Subsection |
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| 47 | 47 | | (d) if, at the time the application is submitted, an online dealer |
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| 48 | 48 | | education course is not currently approved by the department. |
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| 49 | 49 | | SECTION 2. Section 503.029(d), Transportation Code, as |
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| 50 | 50 | | added by this Act, applies only to an application for an original |
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| 51 | 51 | | dealer general distinguishing number filed with the Texas |
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| 52 | 52 | | Department of Motor Vehicles on or after September 1, 2020. An |
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| 53 | 53 | | application filed before that date is governed by the law in effect |
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| 54 | 54 | | immediately before the effective date of this Act, and the former |
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| 55 | 55 | | law is continued in effect for that purpose. |
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| 56 | 56 | | SECTION 3. Not later than January 1, 2020, the Texas |
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| 57 | 57 | | Department of Motor Vehicles shall begin accepting applications for |
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| 58 | 58 | | approval from providers of dealer education courses in accordance |
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| 59 | 59 | | with Sections 503.029(d) and (e), Transportation Code, as added by |
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| 60 | 60 | | this Act. |
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| 61 | 61 | | SECTION 4. This Act takes effect September 1, 2019. |
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