85R5999 BEE-F     By: Isaac H.B. No. 4236       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of motor vehicle dealers, manufacturers,   and distributors.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 503.001, Transportation Code, is amended   by amending Subdivisions (4) and (9) and adding Subdivision (10-a)   to read as follows:                (4)  "Dealer" means a person who regularly and actively   buys, sells, or exchanges vehicles at an established and permanent   location.  The term includes a franchised motor vehicle dealer, an   independent motor vehicle dealer, an independent mobility motor   vehicle dealer, [and] a wholesale motor vehicle dealer, and a   manufacturer motor vehicle dealer.                (9)  "Independent motor vehicle dealer" means a dealer   other than a franchised motor vehicle dealer, an independent   mobility motor vehicle dealer, [or] a wholesale motor vehicle   dealer, or a manufacturer motor vehicle dealer.                (10-a)  "Manufacturer motor vehicle dealer" means a   manufacturer who, at an established and permanent location,   regularly and actively buys, sells, or exchanges motor vehicles of   a line make the manufacturer manufactures, distributes, or   assembles.          SECTION 2.  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 motor vehicle dealer.          SECTION 3.  Section 503.036(a), Transportation Code, is   amended to read as follows:          (a)  The holder of a franchised motor vehicle dealer's   general distinguishing number or manufacturer motor vehicle   dealer's general distinguishing number may buy, sell, or exchange   new or used motor vehicles and reassign a manufacturer's   certificate of origin, certificate of title, or other basic   evidence of ownership of any type of vehicle owned by the dealer   that the dealer is not otherwise prohibited by law from selling or   offering for sale.          SECTION 4.  Section 2301.002(25), Occupations Code, is   amended to read as follows:                (25)  "Nonfranchised dealer" means a person who holds   an independent motor vehicle dealer's general distinguishing   number, an independent mobility motor vehicle dealer's general   distinguishing number, [or] a wholesale motor vehicle dealer's   general distinguishing number, or a manufacturer motor vehicle   dealer's general distinguishing number issued by the board under   Chapter 503, Transportation Code.          SECTION 5.  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;                (2)  holds a manufacturer motor vehicle dealer's   general distinguishing number issued by the board under Chapter   503, Transportation Code; or                (3) [(2)]  is a bona fide employee of:                      (A)  the holder of a franchised dealer's license;   or                       (B)  the holder of a manufacturer motor vehicle   dealer's general distinguishing number issued by the board under   Chapter 503, Transportation Code.          SECTION 6.  Section 2301.476, Occupations Code, is repealed.          SECTION 7.  This Act takes effect September 1, 2017.