(a) No person may engage in business as a dealer or
as a wholesale motor vehicle auction unless that person has a valid
GDN assigned by the department for each location from which the person
engages in business. A dealer must also hold a GDN for a consignment
location, unless the consignment location is a wholesale motor vehicle
auction.
(b) Subsection (a) of this section does not apply to
a person exempt from the requirement to obtain a GDN under Transportation
Code §503.024.
(c) A GDN dealer or wholesale motor vehicle auction
application must be on a form prescribed by the department and properly
completed by the applicant as required under §215.83 of this
title (relating to License Applications, Amendments, or Renewals).
A GDN dealer or wholesale motor vehicle auction application must include
all required information, required supporting documents, and required
fees and must be submitted to the department electronically in the
licensing system designated by the department. A GDN dealer or wholesale
motor vehicle auction GDN holder renewing or amending its GDN must
verify current license information, provide related information and
documents for any new requirements or changes to the GDN, and pay
required fees including any outstanding civil penalties owed the department
under a final order. An applicant for a new dealer or wholesale motor
vehicle auction GDN must provide the following:
(1) Required information:
(A) type of GDN requested;
(B) business information, including the name, physical
and mailing addresses, telephone number, Secretary of State file number
(as applicable), and website address, as applicable;
(C) contact name, email address, and telephone number
of the person submitting the application;
(D) contact name, email address, and telephone number
of a person who can provide information about business operations
and the motor vehicle products or services offered;
(E) the name, social security number, date of birth,
identity document information, and ownership percentage for each owner,
partner, member, or principal if the applicant is not a publicly traded
company;
(F) the name, social security number, date of birth,
and identity document information for each officer, director, manager,
trustee, or other representative authorized to act on behalf of the
applicant if the applicant is owned in full or in part by a legal
entity;
(G) the name, employer identification number, ownership
percentage, and non-profit or publicly traded status for each legal
entity that owns the applicant in full or in part;
(H) the name, social security number, date of birth,
and identity document information of at least one manager or other
bona fide employee who will be present at the established and permanent
place of business if the owner is out of state or will not be present
during business hours at the established and permanent place of business
in Texas;
(I) if a dealer, the name, telephone number, and business
email address of the temporary tag database account administrator
designated by the applicant who must be an owner or representative
listed in the application;
(J) criminal history record information under the laws
of Texas, another state in the United States, the United States, and
any foreign jurisdiction for each person listed in the application,
including offense description, date, and location;
(K) military service status;
(L) licensing history required to evaluate fitness
for licensure under §215.89 of this title (relating to Fitness);
(M) information about the business location and business
premises, including whether the applicant will operate as a salvage
vehicle dealer at the location;
(N) history of insolvency, including outstanding or
unpaid debts, judgments, or liens, unless the debt was discharged
under 11 U.S.C. §§101 et seq. (Bankruptcy Act) or is pending
resolution under a case filed under the Bankruptcy Act;
(O) signed Certification of Responsibility, which is
a form provided by the department; and
(P) any other information required by the department
to evaluate the application under current law and board rules.
(2) A legible and accurate electronic image of each
applicable required document:
(A) proof of a surety bond if required under §215.137
of this title (relating to Surety Bond);
(B) the certificate of filing, certificate of incorporation,
or certificate of registration on file with the Secretary of State,
as applicable;
(C) each assumed name certificate on file with the
Secretary of State or county clerk;
(D) at least one of the following unexpired identity
documents for each natural person listed in the application:
(i) driver license;
(ii) Texas Identification Card issued by the Texas
Department of Public Safety under Transportation Code, Chapter 521,
Subchapter E;
(iii) license to carry a handgun issued by the Texas
Department of Public Safety under Government Code, Chapter 411, Subchapter
H;
(iv) passport; or
(v) United States military identification card.
(E) a certificate of occupancy, certificate of compliance,
or other official documentation confirming the business location complies
with municipal ordinances, including zoning, occupancy, or other requirements
for a vehicle business;
(F) documents proving business premises ownership,
or lease or sublease agreement for the license period;
(G) business premises photos and a notarized affidavit
certifying that all premises requirements in §215.140 of this
title (relating to Established and Permanent Place of Business Premises
Requirements) are met and will be maintained during the license period;
(H) evidence of franchise if applying for a franchised
motor vehicle dealer GDN;
(I) proof of completion of the dealer education and
training required under Transportation Code §503.0296, if applicable;
and
(J) any other documents required by the department
to evaluate the application under current law and board rules.
(3) Required fees:
(A) the fee for each type of license requested as prescribed
by law; and
(B) the fee, including applicable taxes, for each standard
dealer plate requested by the applicant as prescribed by law.
(d) An applicant for a dealer or wholesale auction
GDN must also comply with fingerprint requirements in §211.6
of this title (relating to Fingerprint Requirements for Designated
License Types), as applicable.
(e) An applicant for a GDN operating under a name other
than the applicant's business name shall use the assumed name under
which the applicant is authorized to do business, as filed with the
Secretary of State or county clerk, and the assumed name of such legal
entity shall be recorded by the applicant on the application using
the letters "DBA." The applicant may not use a name or assumed name
that may be confused with or is similar to that of a governmental
entity or that is otherwise deceptive or misleading to the public.
(f) A wholesale motor vehicle dealer GDN holder may
sell or exchange vehicles with licensed or authorized dealers only.
A wholesale motor vehicle dealer GDN holder may not sell or exchange
vehicles at retail.
(g) An independent mobility motor vehicle dealer shall
retain and produce for inspection all records relating to the license
requirements under Occupations Code, §2301.002(17-b) and all
information and records required under Transportation Code §503.0295.
(h) In evaluating a new or renewal GDN application
or an application for a new GDN location, the department may require
a site visit to determine if the business location meets the requirements
in §215.140. The department will require the applicant or GDN
holder to provide a notarized affidavit confirming that all premises
requirements are met and will be maintained during the license period.
(i) A person holding an independent motor vehicle GDN
does not have to hold a salvage vehicle dealer's license to:
(1) act as a salvage vehicle dealer or rebuilder; or
(2) store or display a motor vehicle as an agent or
escrow agent of an insurance company.
(j) A person holding an independent motor vehicle GDN
and performing salvage activities under subsection (i) must apply
for a National Motor Vehicle Title Information System (NMVTIS) identification
number and provide the number to the department in the GDN application.
(k) To be eligible for an independent motor vehicle
GDN, a person must complete dealer education and training specified
by the department, except as provided in this subsection:
(1) once a person has completed the required dealer
education and training, the person will not have to retake the dealer
education and training for subsequent GDN renewals, but may be required
to provide proof of dealer education and training completion as part
of the GDN renewal process;
(2) a person holding an independent motor vehicle GDN
for at least 10 years as of September 1, 2019, is exempt from the
dealer education and training requirement; and.
(3) a military service member, military spouse, or
military veteran will receive appropriate credit for prior training,
education, and professional experience and may be exempted from the
dealer education and training requirement.
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