| (a) A dealer's name change requires a new bond or a
rider to the existing bond reflecting the new name, unless the dealer
is not otherwise required to purchase a bond.
(b) A dealer shall notify the department in writing
within 10 days of a change of ownership by submitting a license amendment
application in the department-designated electronic licensing system.
A licensed dealer that proposes to sell or assign to another any interest
in the licensed entity, whether a corporation or otherwise, and provided
the physical location of the licensed entity remains the same, shall
notify the department in writing within 10 days of the change by filing
an application to amend the license in the department-designated electronic
licensing system. If the sale or assignment of any portion of the
business results in a change of entity, then the new entity must apply
for and obtain a new license. A publicly held corporation only needs
to inform the department of a change in ownership if one person or
entity acquires a 10% or greater interest in the licensed entity.
(c) Upon the death of a dealer operating as a sole
proprietor, either the surviving spouse of the deceased dealer or
other individual deemed qualified by the department shall submit to
the department a bond rider adding the name of the surviving spouse
or other qualifying person to the bond for the remainder of the bond
and license term. The surviving spouse or other qualifying person
may continue operating under the current dealer license until the
end of the license term.
(d) For purposes of subsection (c) of this section,
the sole proprietor's surviving spouse may change the ownership of
the dealership at the time the license is renewed without applying
for a new GDN. At the time the renewal application is filed, the sole
proprietor's surviving spouse must submit to the department:
(1) an application to amend the business entity;
(2) a copy of the sole proprietor's certificate of
death, naming the surviving spouse;
(3) the required ownership information; and
(4) if applicable, a bond in the name of the surviving
spouse.
(e) For purposes of subsection (c) of this section,
a qualifying person who is not the surviving spouse may operate the
sole proprietorship business during the term of the license. The qualifying
person must file with the department:
(1) an application to amend the business entity, identifying
the qualifying person as the manager;
(2) an ownership information form, indicating that
the qualifying person has no ownership interest in the business; and
(3) a bond rider adding the qualified person's name
to the existing bond.
(f) For purposes of subsection (c) of this section,
a qualifying person who is not the surviving spouse must file with
the department an application for a new GDN on or before the expiration
of the license term in the department-designated electronic licensing
system.
(g) A determination made under this section does not
impact a decision made by the board under Occupations Code, §2301.462
(relating to Succession Following Death of Franchised Dealer).
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| Source Note: The provisions of this §215.145 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704 |
