| (a) No person may engage in business, serve in the
capacity of, or act as a manufacturer, distributor, converter, or
franchised dealer in Texas unless that person holds a license.
(b) A license application must be on a form prescribed
by the department and properly completed by the applicant. A license
application must include all required information, supporting documents,
and fees and must be submitted to the department electronically in
the licensing system designated by the department.
(c) A license holder renewing or amending its license
must verify current license information, provide related information
and documents for any new license requirements or changes to the license,
and pay required fees including any outstanding civil penalties owed
the department under a final order.
(d) An applicant for a new license must register for
an account in the department-designated licensing system by selecting
the licensing system icon on the dealer page of the department website.
An applicant must designate the account administrator and provide
the name and email address for that person, and provide the business
telephone number, name, business type, and social security number
or employer identification number, as applicable. The applicant's
licensing account administrator must be an owner, officer, manager,
or bona fide employee.
(e) Once registered, an applicant may apply for a new
license and must provide the following:
(1) Required information:
(A) type of license 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, beneficiary, 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) 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;
(I) military service status;
(J) licensing history required to evaluate fitness
for licensure under §215.89 of this title (relating to Fitness);
(K) if applying for a manufacturer's, distributor's,
or converter's license:
(i) financial resources, business integrity and experience,
facilities and personnel for serving franchised dealers;
(ii) a description of the business model or business
process and product and services used or offered sufficient to allow
the department to determine if the license type applied for is appropriate
under Texas law; and
(iii) number of standard license plates requested.
(L) if applying for a manufacturer's or distributor's
license:
(i) if the applicant or any entity controlled by the
applicant owns an interest in a Texas motor vehicle dealer or dealership,
controls a Texas dealer or dealership, or acts in the capacity of
a Texas dealer;
(ii) a statement regarding the manufacturer's compliance
with Occupations Code Chapter 2301, Subchapter I and §§2301.451-2301.476;
and
(iii) if a franchise agreement for each line-make being
applied for exists which states the obligations of a Texas franchised
dealer to the applicant and the obligations of the applicant to the
Texas franchised dealer.
(M) if applying for a manufacturer's license, the line-make
information including the world manufacturer identifier assigned by
the National Highway Traffic Safety Administration, line-make name,
and vehicle type;
(N) if applying for a distributor's license:
(i) the manufacturer for whom the distributor will
act;
(ii) whether the manufacturer is licensed in Texas;
(iii) the person in this state who is responsible for
compliance with the warranty covering the motor vehicles to be sold;
and
(iv) the terms of the contract under which the distributor
will act for the manufacturer.
(O) if applying for a converter's license:
(i) a name and description for each conversion package;
and
(ii) the manufacturer or distributor and line-make
of the underlying new motor vehicle chassis to be converted.
(P) if applying for a franchised dealer's license:
(i) reason for the new application;
(ii) dealership location on a system-generated map;
(iii) whether the dealership is under construction
and expected completion date;
(iv) information about the performance of sales or
warranty services at the location; and
(v) information necessary to obtain a franchised dealer
GDN under §215.133 of this title (relating to GDN Application
Requirements for a Dealer or a Wholesale Motor Vehicle Auction).
(Q) signed Certificate of Responsibility, which is
a form provided by the department; and
(R) 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) the certificate of filing, certificate of incorporation,
or certificate of registration on file with the Secretary of State,
as applicable;
(B) each assumed name certificate on file with the
Secretary of State or county clerk;
(C) 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 armed forces identification.
(D) if applying for a manufacturer's, distributor's,
or converter's license, a written description of the business model
or business process and brochures, photos, or other documents describing
products and services sufficient to allow the department to identify
a motor vehicle product type and the appropriate license required
under Texas law;
(E) if applying for a manufacturer's or distributor's
license:
(i) a list of each franchised dealer in Texas including
the dealer's name and physical address, or if motor vehicle sales
or offers to sell to Texas residents will solely be over the internet,
a list of each out-of-state dealer or person authorized by the manufacturer
or distributor to sell a new motor vehicle online to a Texas resident
including the dealer's or person's name, physical address, and license
number issued by the state in which the dealer or person is located;
and
(ii) a list of motor vehicle product line-makes manufactured
or distributed for sale.
(F) if applying for a manufacturer's license:
(i) a list of authorized distributors or representatives;
and
(ii) a franchised dealer's preparation and delivery
obligations before delivery of a new vehicle to a retail purchaser
and the schedule of compensation to be paid to the franchised dealer;
(G) if applying for a distributor's license, either:
(i) pages of the executed distributor agreement containing
at minimum the following:
(I) the legal business name of each party;
(II) authorized signature of each party;
(III) distribution territory;
(IV) distribution agreement effective date and end
date,
or written confirmation from the distributor and manufacturer that
the distribution agreement is expected to be in effect for the entire
license period;
(V) physical location, mailing address, and email address
of each party;
Cont'd... |
