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