| (a) A dealer's name change requires a new bond or a
rider to the existing bond reflecting the new dealer 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. 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. 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 of a dealership operated
as a sole proprietorship, 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 dealership operations under the current dealer
license until the end of the license term.
(d) For purposes of subsection (c) of this section,
if the qualifying person is the sole proprietor's surviving spouse,
then the 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 is required to 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) a bond in the name of the surviving spouse.
(e) For purposes of subsection (c) of this section,
if the qualifying person is not the surviving spouse, then the qualifying
person 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 individual's name to the
existing bond.
(f) For purposes of subsection (c) of this section,
if the qualifying person is not the surviving spouse, then at the
time the license is due to be renewed, the qualifying person must
file with the department an application for a new GDN.
(g) A determination made under this section does not
impact a decision made by the board under Occupations Code, §2301.462,
Succession Following Death of Dealer.
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