TITLE: Relating to the ownership, control, or operation of a franchised or nonfranchised dealer or dealership by certain manufacturers.

SUMMARY: Relating to the ownership, control, or operation of a franchised or nonfranchised dealer or dealership by certain manufacturers.

FULL TEXT:
AN ACT relating to the ownership, control, or operation of a franchised or nonfranchised dealer or dealership by certain manufacturers. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2301.476, Occupations Code, is amended by adding Subsection (a-1) and amending Subsection (c) to read as follows: (a-1) For purposes of this section, "type of motor vehicle" means: (1) a passenger car that is a motor vehicle or a light-duty truck in Class 1, 2, or 3, other than a motorcycle or motor-driven cycle, primarily used to transport persons and designed to accommodate 10 or fewer passengers, including the operator; (2) a motorcycle or motor-driven cycle as defined by Section 541.201, Transportation Code; (3) an engine, transmission, or rear axle described by Section 2301.002(23)(C); (4) a truck, including a medium-duty or heavy-duty truck that is in Class 4, 5, 6, 7, or 8; (5) a bus that is a motor vehicle used to transport persons and designed to accommodate more than 10 passengers, including the operator; (6) a road tractor or truck tractor as defined by Section 541.201, Transportation Code; (7) a fire-fighting vehicle; or (8) a recreational vehicle, including a motor home, a towable recreational vehicle, or a travel trailer or house trailer as defined by Section 501.002, Transportation Code. (c) Except as provided by this section, a manufacturer or distributor may not directly or indirectly: (1) own an interest in a franchised or nonfranchised dealer or dealership that sells or services the same type of motor vehicle that it manufactures or distributes;(2) operate or control:(A) a [franchised or nonfranchised] dealer or dealership franchised to sell or service the same type of motor vehicle that it manufactures or distributes; or (B) a nonfranchised dealer or dealership;or (3) act in the capacity of:(A) a [franchised or nonfranchised] dealer or dealership franchised to sell or service the same type of motor vehicle that it manufactures or distributes; or (B) a nonfranchised dealer.SECTION 2. This Act takes effect September 1, 2017.