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

bollar · Feb 19, 2015

Here it is!

	84R9491 MAW-F

	By: Rodriguez of Travis	H.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: Hancock	S.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.

HillCountryFun · Feb 19, 2015

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!!

bollar · Feb 19, 2015

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.

Firewired · Feb 19, 2015

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

bollar · Feb 19, 2015

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:

Texas rank	U.S. rank	Metropolitan Area	Metropolitan Division	Population
1	4	Dallas–Fort Worth–Arlington		6,371,773
			Dallas–Plano–Irving	4,235,751
			Fort Worth–Arlington	2,136,022
2	5	Houston–Sugar Land–Baytown		6,086,538
3	25	San Antonio–New Braunfels		2,142,508
4	35	Austin–Round Rock–San Marcos		1,716,289
5	58	El Paso–Las Cruces		1,045,180
6	68	McAllen–Edinburg–Mission		774,769
7	114	Corpus Christi		442,600
8	126	Brownsville–Harlingen		406,220
9	127	Killeen–Temple–Fort Hood		405,300
10	132	Beaumont–Port Arthur		388,745
11	162	Lubbock		284,890
12	184	Laredo		250,304

bollar · Feb 19, 2015

Firewired said:
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

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.

ggies07 · Feb 19, 2015

I read it, but never understand bill wording. What does this mean? Tesla can only open a certain amount of stores but sell directly?

bollar · Feb 19, 2015

ggies07 said:
I read it, but never understand bill wording. What does this mean? Tesla can only open a certain amount of stores but sell directly?

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.

ggies07 · Feb 19, 2015

bollar said:
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.

wow, very nice.

- - - Updated - - -

Firewired said:
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

Thanks! I emailed mine as well.

Grendal · Feb 19, 2015

Two Bills in Texas to Legitimize Sales

Two Bills Filed In Texas To Legalize Tesla Direct Sales

Looks like there is movement in Texas.

Twiglett · Feb 20, 2015

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.......

snellenr · Feb 20, 2015

Twiglett said:
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.......

HB 1653 is right here on the legislative website...

http://www.capitol.state.tx.us/BillLookup/History.aspx?LegSess=84R&Bill=HB1653

Danal · Feb 20, 2015

snellenr said:
HB 1653 is right here on the legislative website...

http://www.capitol.state.tx.us/BillLookup/History.aspx?LegSess=84R&Bill=HB1653

Read the text. Looks GREAT. What is the best way to support this?

I'm thinking:

Letter to each of our reps.
Get a publication interested?
What else?

bollar · Feb 20, 2015

This is already being discussed in the Texas forum: HB 1653 / SB 639 Relating to the ownership or operation of a motor vehicle dealership

I highly recommend we all contact our legislators to show our support!

TexasEV · 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.

stephenpace · Feb 20, 2015

Very nice email!

bollar · Feb 24, 2015

SB 639 has been referred to The Texas State Senate: Senate Committee on Natural Resources Economic Development

My take this is a good thing. For one, Senator Hancock is a member -- and it keeps the discussion focused on forward-thinking issues. Here are the members:

Committee Information

Chair.Troy Fraser
Vice-Chair.Craig Estes

Members:.Brian Birdwell
.Bob Hall
.Kelly Hancock
.Juan "Chuy" Hinojosa
.Eddie Lucio, Jr.
.Robert Nichols
.Carlos Uresti
.Kel Seliger
.Judith Zaffirini

Firewired · Feb 24, 2015

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

TexasEV · Feb 26, 2015

bollar said:
SB 639 has been referred to The Texas State Senate: Senate Committee on Natural Resources Economic Development

My take this is a good thing. For one, Senator Hancock is a member -- and it keeps the discussion focused on forward-thinking issues. Here are the members:

Committee Information

Chair.Troy Fraser
Vice-Chair.Craig Estes Members:.Brian Birdwell
.Bob Hall
.Kelly Hancock
.Juan "Chuy" Hinojosa
.Eddie Lucio, Jr.
.Robert Nichols
.Carlos Uresti
.Kel Seliger
.Judith Zaffirini

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.

Firewired · Feb 26, 2015

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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