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repealed.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