By: Hancock S.B. No. 1415
(Geren)
A BILL TO BE ENTITLED
AN ACT
relating to the ownership, control, or operation of a franchised or
nonfranchised dealer or dealership by certain motor vehicle
manufacturers and distributors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2301.476(a), (b), and (c), Occupations
Code, are amended to read as follows:
(a) In this section:
(1) "Manufacturer"[, "manufacturer"] includes:
(A) [(1)] a representative; or
(B) [(2)] a person who:
(i) [(A)] is affiliated with a manufacturer
or representative; or
(ii) [(B)] directly or indirectly through
an intermediary, is controlled by, or is under common control with,
a manufacturer.
(2) "Type of motor vehicle" means the classification
of a motor vehicle as one of the following:
(A) a passenger car or a truck, including a
pickup truck, van, panel delivery truck, or a carryall truck, with a
gross vehicle weight rating of 14,000 pounds or less that is used
primarily to transport persons or property;
(B) a motorcycle or motor-driven cycle, which
includes:
(i) an all-terrain vehicle, as defined by
Section 502.001, Transportation Code;
(ii) a recreational off-highway vehicle, as
defined by Section 502.001, Transportation Code;
(iii) an autocycle, as defined by Section
501.008, Transportation Code;
(iv) a moped, as defined by Section
541.201, Transportation Code;
(v) a motorcycle, as defined by Section
541.201, Transportation Code; or
(vi) a motor-driven cycle, as defined by
Section 541.201, Transportation Code;
(C) an engine, transmission, or rear axle, as
described by Section 2301.002(23)(C);
(D) a medium-duty or heavy-duty truck with a
gross vehicle weight rating of more than 14,000 pounds;
(E) a bus, as defined by Section 541.201,
Transportation Code;
(F) a road tractor or truck tractor, as defined
by Section 541.201, Transportation Code;
(G) a firefighting vehicle; or
(H) a recreational vehicle, which includes:
(i) a motor home;
(ii) a towable recreational vehicle;
(iii) a travel trailer, as defined by
Section 501.002, Transportation Code; or
(iv) a house trailer, as defined by Section
501.002, Transportation Code.
(b) For purposes of Subsection (a)(1)(B)(ii) [(a)(2)(B)], a
person is controlled by a manufacturer if the manufacturer is
directly or indirectly authorized, by law or by agreement of the
parties, to direct or influence the person's management and
policies.
(c) Except as provided by this section, a manufacturer or
distributor may not directly or indirectly:
(1) own an interest in:
(A) a franchised dealer or dealership, as defined
by Sections 2301.002(16) and (8), respectively, for the same type
of motor vehicle that:
(i) the manufacturer manufactures or
distributes; or
(ii) the distributor distributes; or
(B) a nonfranchised dealer or dealership;
(2) operate or control:
(A) a franchised dealer or dealership, as defined
by Sections 2301.002(16) and (8), respectively, for the same type
of motor vehicle that:
(i) the manufacturer manufactures or
distributes; or
(ii) the distributor distributes; or
(B) a nonfranchised dealer or dealership; or
(3) act in the capacity of:
(A) a franchised dealer or dealership, as defined
by Sections 2301.002(16) and (8), respectively, for the same type
of motor vehicle that:
(i) the manufacturer manufactures or
distributes; or
(ii) the distributor distributes; or
(B) a nonfranchised dealer.
SECTION 2. This Act takes effect September 1, 2019.