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Texas EV Dealership Ownership Act

This bill amends Texas law to allow manufacturers or distributors of electric vehicles to own and operate motor vehicle dealerships in the state under certain conditions. Specifically, it allows manufacturers or distributors to obtain dealer licenses and operate as dealers if they only make electric vehicles and have never sold those vehicles through independent franchised dealerships in Texas before. The bill also requires applicants for dealer licenses to specify if they are a manufacturer or distributor qualifying under the new law.

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Maria Merano
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19K views3 pages

Texas EV Dealership Ownership Act

This bill amends Texas law to allow manufacturers or distributors of electric vehicles to own and operate motor vehicle dealerships in the state under certain conditions. Specifically, it allows manufacturers or distributors to obtain dealer licenses and operate as dealers if they only make electric vehicles and have never sold those vehicles through independent franchised dealerships in Texas before. The bill also requires applicants for dealer licenses to specify if they are a manufacturer or distributor qualifying under the new law.

Uploaded by

Maria Merano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

By:AAHarris [Link].

A4379

A BILL TO BE ENTITLED

1 AN ACT

2 relating to the ownership or operation of a motor vehicle

3 dealership by a manufacturer or distributor of motor vehicles

4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

5 [Link] 2301.252(a), Occupations Code, is

6 amended to read as follows:

7 (a)AAA person may not engage in the business of buying,

8 selling, or exchanging new motor vehicles unless the person:

9 (1)AAholds a franchised dealer ’s license issued under

10 this chapter for the make of new motor vehicle being bought, sold,

11 or exchanged[;] or

12 [(2)]AAis a bona fide employee of the holder of a

13 franchised dealer ’s license; or

14 (2)AAis a manufacturer or distributor described by

15 Section 2301.476(i-1) or is a bona fide employee of the

16 manufacturer or distributor.

17 [Link] 2301.476, Occupations Code, is amended

18 by adding Subsection (i-1) to read as follows:

19 (i-1)AANotwithstanding any other provision of this chapter,

20 a manufacturer or distributor may own or operate a dealership, may

21 own, operate, or otherwise act in the capacity of a dealer, and may

22 obtain a dealer general distinguishing number if:

23 (1)AAthe manufacturer or distributor manufactures or

24 distributes motor vehicles powered only by electricity or battery;

87R14418 TYPED 1
[Link].A4379

1 and

2 (2)AAthe manufacturer ’s line-make has never been sold

3 in this state through an independent franchised new motor vehicle

4 dealership.

5 [Link] 503.029(a), Transportation Code, is

6 amended to read as follows:

7 (a)AAAn applicant for an original or renewal dealer general

8 distinguishing number must submit to the department a written

9 application on a form that:

10 (1)AAis provided by the department;

11 (2)AAcontains the information required by the

12 department;

13 (3)AAcontains information that demonstrates the person

14 meets the requirements prescribed by Section 503.032;

15 (4)AAcontains information that demonstrates the

16 applicant has complied with all applicable state laws and municipal

17 ordinances;

18 (5)AAstates that the applicant agrees to allow the

19 department to examine during working hours the ownership papers for

20 each registered or unregistered vehicle in the applicant ’s

21 possession or control; and

22 (6)AAspecifies whether the applicant proposes to be a:

23 (A)AAfranchised motor vehicle dealer;

24 (B)AAindependent motor vehicle dealer;

25 (C)AAwholesale motor vehicle dealer;

26 (D)AAmotorcycle dealer;

27 (E)AAhouse trailer dealer;

2
[Link].A4379

1 (F)AAtrailer or semitrailer dealer; [or]

2 (G)AAindependent mobility motor vehicle dealer;

3 or

4 (H)AAmanufacturer or distributor described by

5 Section 2301.476(i-1), Occupations Code.

6 [Link] Act takes effect September 1, 2021.

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