A dealer must meet the following requirements at each licensed
location and maintain the requirements during the term of the license.
If multiple dealers are licensed at a location, each dealer must maintain
the following requirements during the entire term of the license.
(1) Business hours for retail dealers.
(A) A retail dealer's office shall be open at least
four days per week for at least four consecutive hours per day and
may not be open solely by appointment.
(B) The retail dealer's business hours for each day
of the week must be posted at the main entrance of the retail dealer's
office that is accessible to the public. The owner or a bona fide
employee of the retail dealer shall be at the retail dealer's licensed
location during the posted business hours for the purposes of buying,
selling, exchanging, or leasing vehicles. If the owner or a bona fide
employee is not available to conduct business during the retail dealer's
posted business hours due to special circumstances or emergencies,
a separate sign must be posted indicating the date and time the retail
dealer will resume operations. Regardless of the retail dealer's business
hours, the retail dealer's telephone must be answered from 8:00 a.m.
to 5:00 p.m. weekdays by a bona fide employee, owner, answering service,
voicemail service, or answering machine. A caller must be able to
speak to a natural person or leave a message during these hours.
(2) Business hours for wholesale motor vehicle dealers.
A dealer that holds only a wholesale motor vehicle dealer's GDN must
post its business hours at the main entrance of the wholesale motor
vehicle dealer's office. A wholesale motor vehicle dealer or bona
fide employee shall be at the wholesale motor vehicle dealer's licensed
location at least two weekdays per week for at least two consecutive
hours per day. A wholesale motor vehicle dealer may not be open solely
by appointment. Regardless of the wholesale motor vehicle dealer's
business hours, the wholesale motor vehicle dealer's telephone must
be answered from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide employee,
owner, answering service, voicemail service, or answering machine.
A caller must be able to speak to a natural person or leave a message
during these hours.
(3) Business sign requirements for retail dealers.
(A) A retail dealer must display a conspicuous, permanent
sign with letters at least six inches in height showing the retail
dealer's business name or assumed name substantially similar to the
name reflected on the retail dealer's GDN under which the retail dealer
conducts business. A business sign is considered conspicuous if it
is easily visible to the public within 100 feet of the main entrance
of the business office. A business sign is considered permanent only
if it is made of durable, weather-resistant material.
(B) The sign must be permanently mounted at the physical
address listed on the application for the retail dealer's GDN. A business
sign is considered permanently mounted if bolted to an exterior building
wall or bolted or welded to a dedicated sign pole or sign support
permanently installed in the ground.
(C) A retail dealer may use a temporary sign or banner
if that retail dealer can show proof that a sign that meets the requirements
of this paragraph has been ordered and provides a written statement
that the sign will be promptly and permanently mounted upon delivery.
(D) A retail dealer is responsible for ensuring that
the business sign complies with municipal ordinances, and that any
lease signage requirements are consistent with the signage requirements
in this paragraph.
(4) Business sign requirements for wholesale motor
vehicle dealers.
(A) Exterior Sign
(i) A wholesale motor vehicle dealer must display a
conspicuous, permanent sign with letters at least six inches in height
showing the wholesale motor vehicle dealer's business name or assumed
name substantially similar to the name reflected on the wholesale
motor vehicle dealer's GDN under which the wholesale motor vehicle
dealer conducts business. Effective September 1, 2023, the sign must
also include the statement that "Purchasers must be Licensed Dealers"
in letters at least three inches in height. A business sign is considered
conspicuous if it is easily visible to the public within 100 feet
of the main entrance of the business office. A business sign is considered
permanent only if it is made of durable, weather-resistant material.
(ii) The sign must be permanently mounted on the business
property at the physical address listed on the application. A business
sign is considered permanently mounted if bolted to an exterior building
wall or bolted or welded to a dedicated sign pole or sign support
permanently installed in the ground. A wholesale motor vehicle dealer
may use a temporary exterior sign or banner if the wholesale motor
vehicle dealer can show proof that a sign that meets the requirements
of this paragraph has been ordered and provides a written statement
that the sign will be promptly and permanently mounted upon delivery.
(B) Interior Sign
(i) If the wholesale motor vehicle dealer's office
is located in an office building with one or more other businesses
and an outside sign is not permitted by the property owner, a conspicuous
permanent business sign permanently mounted on or beside the main
door to the wholesale motor vehicle dealer's office with letters at
least two inches in height is acceptable. Effective September 1, 2023,
the sign must also include the statement that "Purchasers must be
Licensed Dealers" in letters at least one inch in height.
(ii) An interior business sign is considered conspicuous
if it is easily visible to the public within 10 feet of the main entrance
of the wholesale motor vehicle dealer's office. An interior sign is
considered permanent if made from durable material and has lettering
that cannot be changed. An interior sign is considered permanently
mounted if bolted or otherwise permanently affixed to the main door
or nearby wall. A wholesale motor vehicle dealer may use a temporary
interior sign or banner if the wholesale motor vehicle dealer can
show proof that a sign that meets the requirements of this paragraph
has been ordered and provides a written statement that the sign will
be promptly and permanently mounted upon delivery.
(C) A wholesale motor vehicle dealer is responsible
for ensuring that the business sign complies with municipal ordinances
and that any lease signage requirements are consistent with the signage
requirements in this paragraph.
(5) Office requirements for a retail dealer and a wholesale
motor vehicle dealer.
(A) A dealer's office must be located in a building
with a permanent roof and connecting exterior walls on all sides.
(B) A dealer's office must comply with all applicable
municipal ordinances, including municipal zoning ordinances. The dealer
is responsible for obtaining a certificate of occupancy, certificate
of compliance, or other required document issued by a municipal government
to show compliance, including a new certificate or document when the
building is altered or remodeled, or when the building use changes.
(C) A dealer's office may not be located in a residence,
apartment, hotel, motel, rooming house, or any room or building not
open to the public.
(D) A dealer's office may not be located in a restaurant,
gas station, or convenience store, unless the office has a separate
entrance door that does not require a dealer's customer to pass through
the other business.
(E) A dealer's office may not be virtual or provided
by a subscription for office space or office services. Access to an
office space or office services is not considered an established and
permanent location.
(F) The physical address of the dealer's office must
be in Texas and recognized by the U.S. Postal Service or capable of
receiving U.S. mail. The department will not mail a metal dealer's
license plate to an out-of-state address.
(G) A portable-type office building may qualify as
an office only if the building meets the requirements of this section
and is not a readily moveable trailer or other vehicle.
(H) The dealer's office space must:
(i) include at least 100 square feet of interior floor
space, exclusive of hallways, closets, or restrooms;
(ii) have a minimum seven-foot-high ceiling;
(iii) accommodate required office equipment; and
(iv) allow a dealer and customer to safely access the
office and conduct business in private while seated.
(6) Required office equipment for a retail dealer and
a wholesale motor vehicle dealer. At a minimum, a dealer's office
must be equipped with:
(A) a desk;
(B) two chairs;
(C) internet access; and
(D) a working telephone number listed in the business
name or assumed name under which the dealer conducts business.
(7) Number of retail dealers in one building. Not more
than four retail dealers may be located in the same building. Each
retail dealer located in the same building must meet the requirements
of this section.
(8) Number of wholesale motor vehicle dealers in one
office building. Not more than eight wholesale motor vehicle dealers
may be located in the same office building. Each wholesale motor vehicle
dealer located in the same office building must meet the requirements
of this section.
(9) Office sharing prohibition for retail dealers and
wholesale motor vehicle dealers. Unless otherwise authorized by the
Transportation Code, a retail dealer and a wholesale motor vehicle
dealer licensed after September 1, 1999, may not be located in the
same building.
(10) Dealer housed with other business.
(A) If a person conducts business as a dealer in conjunction
with another business owned by the same person and under the same
name as the other business, the same telephone number may be used
for both businesses. If the name of the dealer differs from the name
of the other business, a separate telephone listing and a separate
sign for each business are required.
(B) A person may conduct business as a dealer in conjunction
with another business not owned by that person only if the dealer
owns the property on which business is conducted or has a separate
lease agreement from the owner of that property that meets the requirements
of this section. The same telephone number may not be used by both
businesses. The dealer must have separate business signs, telephone
listings, and office equipment required under this section.
(C) A dealer's office must have permanent interior
walls on all sides and be separate from any public area used by another
business.
(11) Display area and storage lot requirements.
(A) A wholesale motor vehicle dealer is not required
to have display space at the wholesale motor vehicle dealer's business
premises.
(B) A retail dealer must have an area designated as
display space for the retail dealer's inventory. A retail dealer's
designated display area must comply with the following requirements.
(i) The display area must be located at the retail
dealer's physical business address or contiguous to the retail dealer's
physical address. The display area may not be in a storage lot.
(ii) The display area must be of sufficient size to
display at least five vehicles of the type for which the GDN is issued.
Those spaces must be reserved exclusively for the retail dealer's
inventory and may not be used for customer parking, employee parking,
general storage, or shared or intermingled with another business or
a public parking area, a driveway to the office, or another dealer's
display area.
(iii) The display area may not be on a public easement,
right-of-way, or driveway unless the governing body having jurisdiction
of the easement, right-of-way, or driveway expressly consents in writing
to use as a display area. If the easement, right-of-way, or driveway
is a part of the state highway system, use as a display area may only
be authorized by a lease agreement.
(iv) If a retail dealer shares a display or parking
area with another business, including another dealer, the dealer's
vehicle inventory must be separated from the other business's display
or parking area by a material object or barrier that cannot be readily
removed. A material object or barrier must be in place on all sides
except for the space necessary to allow for entry and exit of vehicle
inventory.
(v) If a dealer's business location includes gasoline
pumps or a charging station or includes another business that sells
gasoline or has a charging station, the dealer's display area may
not be part of the parking area for fuel or charging station customers
and may not interfere with access to or from the gasoline pumps, fuel
tanks, charging station, or fire prevention equipment.
(vi) The display area must be adequately illuminated
if the retail dealer is open at night so that a vehicle for sale can
be properly inspected by a potential buyer.
(vii) The display area may be located inside a building;
however, if multiple dealers are displaying vehicles inside a building,
each dealer's display area must be separated by a material object
or barrier that cannot be readily removed. A material object or barrier
must be in place on all sides except for the space necessary to allow
for entry and exit of vehicle inventory.
Cont'd... |
