| 1 | 1 | | 88R10755 BEE-D |
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| 2 | 2 | | By: Miles S.B. No. 1448 |
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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 location for which a wholesale motor vehicle dealer |
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| 8 | 8 | | general distinguishing number may be issued. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 503.027, Transportation Code, is amended |
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| 11 | 11 | | by adding Subsection (c) to read as follows: |
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| 12 | 12 | | (c) A rule adopted by the board relating to a dealer |
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| 13 | 13 | | location, including the classification of a location as an |
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| 14 | 14 | | established and permanent place of business, may not: |
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| 15 | 15 | | (1) require that the dealer display an interior or |
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| 16 | 16 | | exterior sign at a location that is a residential location |
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| 17 | 17 | | described by Section 503.032(b)(2); or |
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| 18 | 18 | | (2) prohibit a wholesale motor vehicle dealer from |
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| 19 | 19 | | being located in the same building as a retail dealer, except that a |
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| 20 | 20 | | rule may prohibit a wholesale motor vehicle dealer from being |
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| 21 | 21 | | located in the same office space as a retail dealer. |
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| 22 | 22 | | SECTION 2. Sections 503.032(a) and (b), Transportation |
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| 23 | 23 | | Code, are amended to read as follows: |
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| 24 | 24 | | (a) An applicant for a dealer general distinguishing number |
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| 25 | 25 | | or wholesale motor vehicle auction general distinguishing number |
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| 26 | 26 | | must demonstrate that the location for which the applicant requests |
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| 27 | 27 | | the number is an established and permanent place of business. |
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| 28 | 28 | | Except as provided by Subsection (b), a [A] location is considered |
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| 29 | 29 | | to be an established and permanent place of business if the |
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| 30 | 30 | | applicant: |
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| 31 | 31 | | (1) owns the real property on which the business is |
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| 32 | 32 | | situated or has a written lease for the property that has a term of |
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| 33 | 33 | | not less than the term of the general distinguishing number; |
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| 34 | 34 | | (2) maintains on the location: |
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| 35 | 35 | | (A) a permanent furnished office that is equipped |
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| 36 | 36 | | as required by the department for the sale of the vehicles of the |
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| 37 | 37 | | type specified in the application; and |
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| 38 | 38 | | (B) a conspicuous sign with letters at least six |
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| 39 | 39 | | inches high showing the name of the applicant's business; and |
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| 40 | 40 | | (3) has sufficient space on the location to display at |
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| 41 | 41 | | least five vehicles of the type specified in the application. |
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| 42 | 42 | | (b) A location for which a wholesale motor vehicle dealer is |
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| 43 | 43 | | applying [An applicant] for a general distinguishing number is |
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| 44 | 44 | | considered to be an established and permanent place of business if |
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| 45 | 45 | | the location: |
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| 46 | 46 | | (1) satisfies the requirements of Subsection (a), |
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| 47 | 47 | | except that the location [as a wholesale motor vehicle dealer] is |
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| 48 | 48 | | not required to have [maintain] display space as described by [in |
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| 49 | 49 | | accordance with] Subsection (a)(3); or |
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| 50 | 50 | | (2) is a residential location equipped with: |
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| 51 | 51 | | (A) Internet access; and |
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| 52 | 52 | | (B) a working telephone number listed in the |
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| 53 | 53 | | business name or assumed name under which the dealer conducts |
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| 54 | 54 | | business. |
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| 55 | 55 | | SECTION 3. Section 503.032, Transportation Code, as amended |
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| 56 | 56 | | by this Act, applies only to an application for an initial or |
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| 57 | 57 | | renewal wholesale motor vehicle dealer general distinguishing |
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| 58 | 58 | | number submitted on or after the effective date of this Act. An |
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| 59 | 59 | | application for an initial or renewal wholesale motor vehicle |
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| 60 | 60 | | dealer general distinguishing number submitted before the |
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| 61 | 61 | | effective date of this Act is governed by the law in effect on the |
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| 62 | 62 | | date the application was submitted, and the former law is continued |
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| 63 | 63 | | in effect for that purpose. |
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| 64 | 64 | | SECTION 4. This Act takes effect September 1, 2023. |
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