87R14418 TYPED
By: Harris H.B. No. 4379
A BILL TO BE ENTITLED
AN ACT
relating to the ownership or operation of a motor vehicle
dealership by a manufacturer or distributor of motor vehicles
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2301.252(a), Occupations Code, is
amended to read as follows:
(a) A person may not engage in the business of buying,
selling, or exchanging new motor vehicles unless the person:
(1) holds a franchised dealer's license issued under
this chapter for the make of new motor vehicle being bought, sold,
or exchanged[;] or
[(2)] is a bona fide employee of the holder of a
franchised dealer's license; or
(2) is a manufacturer or distributor described by
Section 2301.476(i-1) or is a bona fide employee of the
manufacturer or distributor.
SECTION 2. Section 2301.476, Occupations Code, is amended
by adding Subsection (i-1) to read as follows:
(i-1) Notwithstanding any other provision of this chapter,
a manufacturer or distributor may own or operate a dealership, may
own, operate, or otherwise act in the capacity of a dealer, and may
obtain a dealer general distinguishing number if:
(1) the manufacturer or distributor manufactures or
distributes motor vehicles powered only by electricity or battery;
and
(2) the manufacturer's line-make has never been sold
in this state through an independent franchised new motor vehicle
dealership.
SECTION 3. Section 503.029(a), Transportation Code, is
amended to read as follows:
(a) An applicant for an original or renewal dealer general
distinguishing number must submit to the department a written
application on a form that:
(1) is provided by the department;
(2) contains the information required by the
department;
(3) contains information that demonstrates the person
meets the requirements prescribed by Section 503.032;
(4) contains information that demonstrates the
applicant has complied with all applicable state laws and municipal
ordinances;
(5) states that the applicant agrees to allow the
department to examine during working hours the ownership papers for
each registered or unregistered vehicle in the applicant's
possession or control; and
(6) specifies whether the applicant proposes to be a:
(A) franchised motor vehicle dealer;
(B) independent motor vehicle dealer;
(C) wholesale motor vehicle dealer;
(D) motorcycle dealer;
(E) house trailer dealer;
(F) trailer or semitrailer dealer; [or]
(G) independent mobility motor vehicle dealer;
or
(H) manufacturer or distributor described by
Section 2301.476(i-1), Occupations Code.
SECTION 4. This Act takes effect September 1, 2021.