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HB 1653 / SB 639 Relating to the ownership or operation of a motor vehicle dealership

Discussion in 'Texas' started by bollar, Feb 19, 2015.

  1. bollar

    bollar Disgruntled Member

    Joined:
    May 1, 2013
    Messages:
    2,240
    Location:
    Southlake, TX
    Here it is!

    84R9491 MAW-F
    By: Rodriguez of TravisH.B. No. 1653
    A BILL TO BE ENTITLED
    AN ACT
    relating to the ownership or operation of a motor vehicle
    dealership by certain manufacturers or distributors.
    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 does not own or
    operate more than 12 dealers or dealership locations in this state;
    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 immediately if it receives
    a vote of two-thirds of all the members elected to each house, as
    provided by Section 39, Article III, Texas Constitution. If this
    Act does not receive the vote necessary for immediate effect, this
    Act takes effect September 1, 2015.
    84R9491 MAW-F
    By: HancockS.B. No. 639
    A BILL TO BE ENTITLED
    AN ACT
    relating to the ownership or operation of a motor vehicle
    dealership by certain manufacturers or distributors.
    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 does not own or
    operate more than 12 dealers or dealership locations in this state;
    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 immediately if it receives
    a vote of two-thirds of all the members elected to each house, as
    provided by Section 39, Article III, Texas Constitution. If this
    Act does not receive the vote necessary for immediate effect, this
    Act takes effect September 1, 2015.
     
  2. HillCountryFun

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    Aug 20, 2013
    Messages:
    217
    Location:
    Texas Hill Country
    I'm hoping for a two-thirds vote ASAP!! And then I'd love to see a few other (Michigan, New Jersey, etc.) states use this bill as a straw man!!
     
  3. bollar

    bollar Disgruntled Member

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    Southlake, TX
    Nice bipartisan support on the House side: Rodriguez, Eddie (D - Austin) | Laubenberg (R - Collin Cty) | Simmons (R - Denton Cty) | Anderson, Charles "Doc" (R - Waco). Senator Hancock (R - Tarrant Cty) is the only one on the Senate side so far.
     
  4. Firewired

    Firewired Member

    Joined:
    May 23, 2013
    Messages:
    367
    Location:
    San Antonio, Texas
    I know it is early, but I already wrote my Representative and Senator asking them to support it. I would ask you to consider doing the same. To find their contact info and verify your district use:

    Who Represents Me--Home
     
  5. bollar

    bollar Disgruntled Member

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    2,240
    Location:
    Southlake, TX
    Top twelve MSAs. Say two-three in DFW and Houston and one-two in Austin & San Antonio and there's still room for some other stores around the state:

    [TH="bgcolor: #F2F2F2, align: center"]Texas
    rank[/TH][TH="bgcolor: #F2F2F2, align: center"]U.S.
    rank[/TH][TH="bgcolor: #F2F2F2, align: center"]Metropolitan Area[/TH][TH="bgcolor: #F2F2F2, align: center"]Metropolitan Division[/TH][TH="bgcolor: #F2F2F2, align: center"]Population[/TH]
    14Dallas–Fort Worth–Arlington 6,371,773
    Dallas–Plano–Irving4,235,751
    Fort Worth–Arlington2,136,022
    25Houston–Sugar Land–Baytown 6,086,538
    325San Antonio–New Braunfels 2,142,508
    435Austin–Round Rock–San Marcos 1,716,289
    558El Paso–Las Cruces 1,045,180
    668McAllen–Edinburg–Mission 774,769
    7114Corpus Christi 442,600
    8126Brownsville–Harlingen 406,220
    9127Killeen–Temple–Fort Hood 405,300
    10132Beaumont–Port Arthur 388,745
    11162Lubbock 284,890
    12184Laredo 250,304
     
  6. bollar

    bollar Disgruntled Member

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    Southlake, TX
    I don't think it's too early at all. I wrote Representative Capriglione and encouraged him to join the other North Texas Republicans who authored the bill. Senator Hancock is my Senator, so I sent him a note of support.
     
  7. ggies07

    ggies07 Active Member

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    2,248
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    Ft. Worth, TX
    I read it, but never understand bill wording. What does this mean? Tesla can only open a certain amount of stores but sell directly?
     
  8. bollar

    bollar Disgruntled Member

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    Basically any motor vehicle manufacturer who has never had an agreement with an independent franchise dealer can become a dealer themselves and open up to twelve stores.
     
  9. ggies07

    ggies07 Active Member

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    Ft. Worth, TX
    wow, very nice.

    - - - Updated - - -

    Thanks! I emailed mine as well.
     
  10. Grendal

    Grendal Active Member

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  11. Twiglett

    Twiglett Single pedal driver

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    Austin
    Thats what the title says - but the article just says that there are two politicians that "might" introduce something, sadly hardly conclusive.
    We Texans have the best politicians money can buy - no......wait.......
     
  12. snellenr

    snellenr Member

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  13. Danal

    Danal electricmotorglider.com

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    Fairview, TX, United States
  14. bollar

    bollar Disgruntled Member

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  15. TexasEV

    TexasEV Active Member

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    Austin, TX
    #15 TexasEV, Feb 20, 2015
    Last edited: Feb 20, 2015
    This is the letter I wrote today to my representative, with a similar one to my senator citing the senate bill:

    I am a constituent writing to urge you to support HB1653 which was introduced yesterday by Rep. Rodriguez, which would allow Tesla and other future automobile manufacturers who don’t use dealers to sell directly to the public.

    I have owned a Tesla Model S for almost two years which I purchased online. It was the most pleasant car buying experience ever, and the best driving and service experience ever. Anyone who shops for computers at the Apple Store or buys coffee at Starbucks would understand why some car buyers would like to be able to buy a Tesla at a Tesla Store.

    A new company should be allowed to choose how it sells its product, and be allowed to succeed or fail. Anyone supporting free enterprise, free markets, and consumer choice should not want the state to dictate that a new company must use a distribution system set up for the benefit of its competitors. Direct sales is one way Tesla differentiates itself. Let the market decide if that business model is successful or not.

    The arguments you will hear from the auto dealer cartel against this bill are as transparent as an untinted car window. The idea that they provide consumer protection is ludicrous. They want to protect themselves and force their outdated business model on a company that doesn’t want it. Passing this bill would do nothing to interfere with their relationship with their manufacturers or their customers. It doesn’t change how many people they employ selling the makes they represent. It just means they don’t have the right to force themselves on Tesla. The Federal Trade Commission and the US Department of Justice both say that state franchise laws prohibiting direct sales are anti-competitive and increase the cost of cars to the consumer.

    For all of the dealer cartel’s talk about how they provide competition, why are they afraid of competition from a company that sells fewer cars in one year than the brands they represent sell in one day? I think it’s because they don’t want people to find out how pleasant a car buying experience can be when buying direct. Too bad for them. It’s time the state stop protecting the auto dealer cartel from real competition.

    Sincerely,


    Once the bills get assigned to committees we should also focus on those committee members. The Tesla lobbyists said they will have a web site to make it easy to contact our legislators to show our support, but apparently it isn't ready yet.

    It would also be nice to email the sponsors of these bills thanking them for doing so. They'll catch a lot of flack from the auto dealer lobbyists (and their local dealers) for this and it would be great for them to know the car buying public appreciates what they are doing. Just click the email link on their House or Senate web page.
     
  16. stephenpace

    stephenpace VIN S00219

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    Houston, TX
    Very nice email!
     
  17. bollar

    bollar Disgruntled Member

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  18. Firewired

    Firewired Member

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    I am in Carlos Uresti's district and had already sent him an email asking him to support the bill.
     
  19. TexasEV

    TexasEV Active Member

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    The mailing address for each of these senators is:
    The Honorable Firstname Lastname
    P.O. Box 12068
    Capitol Station
    Austin, Texas 78711

    Texans, please write a letter to each of them if you haven't already. You can be sure they're already hearing from the dealers about this.
     
  20. Firewired

    Firewired Member

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    Location:
    San Antonio, Texas
    Received a response from my representative:

    "Thank you for your email regarding HB 1653, relating to the ownership or operation of a motor vehicle dealership. Your willingness to share your thoughts with me is greatly appreciated.I’ve met with the Telsa folks and the automobile dealers in an effort to work out a compromise in dealing with the auto distribution model. We’ll keep you apprised of our negotiations efforts."
     

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