4 | 6 | | AN ACT |
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5 | 7 | | relating to the ownership, control, or operation of a franchised or |
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6 | 8 | | nonfranchised dealer or dealership by certain motor vehicle |
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7 | 9 | | manufacturers and distributors. |
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8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 11 | | SECTION 1. Sections 2301.476(a), (b), and (c), Occupations |
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10 | 12 | | Code, are amended to read as follows: |
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11 | 13 | | (a) In this section: |
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12 | 14 | | (1) "Manufacturer"[, "manufacturer"] includes: |
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13 | 15 | | (A) [(1)] a representative; or |
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14 | 16 | | (B) [(2)] a person who: |
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15 | 17 | | (i) [(A)] is affiliated with a manufacturer |
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16 | 18 | | or representative; or |
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17 | 19 | | (ii) [(B)] directly or indirectly through |
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18 | 20 | | an intermediary, is controlled by, or is under common control with, |
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19 | 21 | | a manufacturer. |
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20 | 22 | | (2) "Type of motor vehicle" means the classification |
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21 | 23 | | of a motor vehicle as one of the following: |
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22 | 24 | | (A) a passenger car or a truck, including a |
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23 | 25 | | pickup truck, van, panel delivery truck, or a carryall truck, with a |
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24 | 26 | | gross vehicle weight rating of 14,000 pounds or less that is used |
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25 | 27 | | primarily to transport persons or property; |
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26 | 28 | | (B) a motorcycle or motor-driven cycle, which |
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27 | 29 | | includes: |
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28 | 30 | | (i) an all-terrain vehicle, as defined by |
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29 | 31 | | Section 502.001, Transportation Code; |
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30 | 32 | | (ii) a recreational off-highway vehicle, as |
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31 | 33 | | defined by Section 502.001, Transportation Code; |
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32 | 34 | | (iii) an autocycle, as defined by Section |
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33 | 35 | | 501.008, Transportation Code; |
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34 | 36 | | (iv) a moped, as defined by Section |
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35 | 37 | | 541.201, Transportation Code; |
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36 | 38 | | (v) a motorcycle, as defined by Section |
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37 | 39 | | 541.201, Transportation Code; or |
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38 | 40 | | (vi) a motor-driven cycle, as defined by |
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39 | 41 | | Section 541.201, Transportation Code; |
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40 | 42 | | (C) an engine, transmission, or rear axle, as |
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41 | 43 | | described by Section 2301.002(23)(C); |
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42 | 44 | | (D) a medium-duty or heavy-duty truck with a |
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43 | 45 | | gross vehicle weight rating of more than 14,000 pounds; |
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44 | 46 | | (E) a bus, as defined by Section 541.201, |
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45 | 47 | | Transportation Code; |
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46 | 48 | | (F) a road tractor or truck tractor, as defined |
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47 | 49 | | by Section 541.201, Transportation Code; |
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48 | 50 | | (G) a firefighting vehicle; or |
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49 | 51 | | (H) a recreational vehicle, which includes: |
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50 | 52 | | (i) a motor home; |
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51 | 53 | | (ii) a towable recreational vehicle; |
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52 | 54 | | (iii) a travel trailer, as defined by |
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53 | 55 | | Section 501.002, Transportation Code; or |
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54 | 56 | | (iv) a house trailer, as defined by Section |
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55 | 57 | | 501.002, Transportation Code. |
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56 | 58 | | (b) For purposes of Subsection (a)(1)(B)(ii) [(a)(2)(B)], a |
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57 | 59 | | person is controlled by a manufacturer if the manufacturer is |
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58 | 60 | | directly or indirectly authorized, by law or by agreement of the |
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59 | 61 | | parties, to direct or influence the person's management and |
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60 | 62 | | policies. |
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61 | 63 | | (c) Except as provided by this section, a manufacturer or |
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62 | 64 | | distributor may not directly or indirectly: |
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63 | 65 | | (1) own an interest in: |
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64 | 66 | | (A) a franchised dealer or dealership, as defined |
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65 | 67 | | by Sections 2301.002(16) and (8), respectively, for the same type |
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66 | 68 | | of motor vehicle that: |
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67 | 69 | | (i) the manufacturer manufactures or |
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68 | 70 | | distributes; or |
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69 | 71 | | (ii) the distributor distributes; or |
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70 | 72 | | (B) a nonfranchised dealer or dealership; |
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71 | 73 | | (2) operate or control: |
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72 | 74 | | (A) a franchised dealer or dealership, as defined |
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73 | 75 | | by Sections 2301.002(16) and (8), respectively, for the same type |
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74 | 76 | | of motor vehicle that: |
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75 | 77 | | (i) the manufacturer manufactures or |
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76 | 78 | | distributes; or |
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77 | 79 | | (ii) the distributor distributes; or |
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78 | 80 | | (B) a nonfranchised dealer or dealership; or |
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79 | 81 | | (3) act in the capacity of: |
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80 | 82 | | (A) a franchised dealer or dealership, as defined |
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81 | 83 | | by Sections 2301.002(16) and (8), respectively, for the same type |
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82 | 84 | | of motor vehicle that: |
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83 | 85 | | (i) the manufacturer manufactures or |
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84 | 86 | | distributes; or |
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85 | 87 | | (ii) the distributor distributes; or |
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86 | 88 | | (B) a nonfranchised dealer. |
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87 | 89 | | SECTION 2. This Act takes effect September 1, 2019. |
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