(a) No person may engage in business as a dealer unless
that person has a currently 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 application shall be on a form prescribed
by the department and properly completed by the applicant. A GDN dealer
application shall include all required information, required supporting
documents, and required fees and shall be submitted to the department
electronically in a system designated by the department for licensing.
A GDN dealer 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. An applicant
for a new dealer 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
(if applicable), and website address (if applicable);
(C) application contact name, email address, and telephone
number;
(D) 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;
(E) 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;
(F) 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;
(G) 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;
(H) the name 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;
(I) 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;
(J) military service status;
(K) licensing history required to evaluate fitness
for licensure under §215.89 of this title (relating to Fitness);
(L) information about the business location and business
premises, including whether the applicant will operate as a salvage
vehicle dealer at the location;
(M) 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;
(N) signed Certificate of Responsibility, which is
a form provided by the department; and
(O) 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,
if applicable;
(C) each assumed name certificate on file with the
Secretary of State or county clerk;
(D) at least one of the following identity documents
for each natural person listed in the application:
(i) current driver license;
(ii) current Texas Identification Card issued by the
Texas Department of Public Safety under Transportation Code, Chapter
521, Subchapter E;
(iii) current license to carry a handgun issued by
the Texas Department of Public Safety under Government Code, Chapter
411, Subchapter H;
(iv) current passport; or
(v) current United States armed forces identification.
(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) 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 the GDN for each type of license requested
as prescribed by law; and
(B) the fee for each metal dealer plate requested by
the applicant as prescribed by law.
(d) An applicant for a GDN must also comply with fingerprint
requirements in §211.6 of this title (relating to Fingerprint
Requirements for General Distinguishing Numbers), if applicable.
(e) An applicant for a dealer GDN operating under a
name other than the applicant shall use the 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 an 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 dealer 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 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) 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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