| 1 | 1 | | 87R10187 BEE-D |
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| 2 | 2 | | By: Dutton H.B. No. 4097 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the ownership, control, or operation of certain used |
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| 8 | 8 | | motor vehicle dealers by certain motor vehicle manufacturers and |
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| 9 | 9 | | distributors. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 2301.476(j), Occupations Code, is |
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| 12 | 12 | | amended to read as follows: |
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| 13 | 13 | | (j) This section does not prohibit a manufacturer or |
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| 14 | 14 | | distributor that owned, on or before January 1, 2007, an interest in |
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| 15 | 15 | | a motor vehicle dealer engaged in the sale of used motor vehicles, |
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| 16 | 16 | | and that has not agreed to or been ordered by a court order or ruling |
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| 17 | 17 | | to comply with Subsection (c), from continuing to directly or |
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| 18 | 18 | | indirectly own an interest in the motor vehicle dealer if the |
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| 19 | 19 | | manufacturer's or distributor's ownership and control of the motor |
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| 20 | 20 | | vehicle dealer does not increase after January 1, 2007. The |
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| 21 | 21 | | exception provided by this subsection: |
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| 22 | 22 | | (1) applies if the motor vehicle dealer is engaged in |
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| 23 | 23 | | the business of selling or offering for sale only used trucks that |
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| 24 | 24 | | have a gross vehicle weight rating of 16,000 pounds or more; |
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| 25 | 25 | | (2) does not apply if the motor vehicle dealer sells a |
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| 26 | 26 | | new motor vehicle; |
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| 27 | 27 | | (3) does not permit an increase in the manufacturer's |
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| 28 | 28 | | or distributor's ownership interest in the motor vehicle dealer; |
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| 29 | 29 | | (4) does not grant an exception to this chapter other |
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| 30 | 30 | | than the exception expressly provided by this subsection; |
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| 31 | 31 | | (5) allows for the addition of not more than four new |
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| 32 | 32 | | dealership locations in this state [applies regardless of whether |
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| 33 | 33 | | there is a transfer or relocation of the motor vehicle dealer |
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| 34 | 34 | | required by: |
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| 35 | 35 | | [(A) an act of God; |
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| 36 | 36 | | [(B) the exercise of eminent domain authority; or |
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| 37 | 37 | | [(C) another reason approved by the division |
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| 38 | 38 | | after a hearing conducted in the same manner as a contested case |
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| 39 | 39 | | under Subchapter O]; and |
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| 40 | 40 | | (6) does not apply if the manufacturer or distributor |
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| 41 | 41 | | no longer owns the interest in the motor vehicle dealer that the |
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| 42 | 42 | | manufacturer or distributor owned on or before January 1, 2007. |
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| 43 | 43 | | SECTION 2. Section 2301.476(o), Occupations Code, is |
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| 44 | 44 | | repealed. |
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| 45 | 45 | | SECTION 3. This Act takes effect September 1, 2021. |
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