Tex. Occ. Code Section 2301.002
Definitions


In this chapter:

(1)

“Ambulance” means a vehicle that is used exclusively to transport or to provide emergency medical care to an injured or ill person and that includes:

(A)

a driver’s compartment;

(B)

a compartment to accommodate an emergency medical care technician or paramedic and two injured or ill persons in a position that permits one of the injured or ill persons to be given intensive life-support during transit;

(C)

equipment and supplies for emergency care of an injured or ill person at the location of the person or at the scene of an injury-producing incident as well as in transit;

(D)

two-way radio communication capability; and

(E)

equipment for light rescue or extrication procedures.

(1-a)

“Ambulance manufacturer” means a person other than the manufacturer of a motor vehicle chassis who, before the retail sale of the motor vehicle, performs modifications on the chassis that result in the finished product being classified as an ambulance.

(2)

“Board” has the meaning assigned by Section 2301.005 (Title Changes).

(3)

“Broker” means a person who, for a fee, commission, or other valuable consideration, arranges or offers to arrange a transaction involving the sale of a new motor vehicle, other than a person who is:

(A)

a franchised dealer or a bona fide employee of a franchised dealer acting for the franchised dealer;

(B)

a representative or a bona fide employee of a representative acting for the representative;

(C)

a distributor or a bona fide employee of a distributor acting for the distributor; or

(D)

the owner of the vehicle at any point in the transaction.

(4)

“Chassis manufacturer” means a person who manufactures and produces the frame on which the body of a motor vehicle is mounted.

(5)

“Conversion” means a motor vehicle, other than a motor home, ambulance, or fire-fighting vehicle, that:

(A)

has been substantially modified by a person other than the manufacturer or distributor of the chassis of the motor vehicle; and

(B)

has not been the subject of a retail sale.

(6)

“Converter” means a person who before the retail sale of a motor vehicle:

(A)

assembles, installs, or affixes a body, cab, or special equipment to a chassis; or

(B)

substantially adds, subtracts from, or modifies a previously assembled or manufactured motor vehicle other than a motor home, ambulance, or fire-fighting vehicle.

(7)

“Dealer” means a person who holds a general distinguishing number issued by the board under Chapter 503 (Dealer’s and Manufacturer’s Vehicle License Plates), Transportation Code.

(8)

“Dealership” means the physical premises and business facilities on which a franchised dealer operates the dealer’s business, including the sale and repair of motor vehicles. The term includes premises or facilities at which a person engages only in the repair of a motor vehicle if the repair is performed under a franchise and a motor vehicle manufacturer’s warranty.

(9)

“Department” means the Texas Department of Motor Vehicles.

(10)

“Director” means the director of the division.

(11)

“Distributor” means a person, other than a manufacturer, who:

(A)

distributes or sells new motor vehicles to a franchised dealer; or

(B)

enters into franchise agreements with franchised dealers, on behalf of the manufacturer.

(12)

“Division” means the department division that regulates the distribution and sale of motor vehicles.

(13)

“Executive director” means the executive director of the department.

(14)

“Fire-fighting vehicle” means a motor vehicle the only purposes of which are to transport firefighters to the scene of a fire and to provide equipment to fight the fire, and that is built on a truck chassis with a gross carrying capacity of at least 10,000 pounds, to which the following have been permanently affixed or mounted:

(A)

a water tank with a combined capacity of at least 500 gallons; and

(B)

a centrifugal water pump with a capacity of at least 750 gallons per minute at 150 pounds per square inch net pump pressure.

(14-a)

“Fire-fighting vehicle manufacturer” means a person other than the manufacturer of a motor vehicle chassis who, before the retail sale of the motor vehicle, performs modifications on the chassis that result in the finished product being classified as a fire-fighting vehicle.

(15)

“Franchise” means one or more contracts between a franchised dealer as franchisee and a manufacturer or a distributor as franchisor, including a written communication from a franchisor to a franchisee in which a duty is imposed on the franchisee, under which:

(A)

the franchisee is granted the right to sell and service new motor vehicles manufactured or distributed by the franchisor or only to service motor vehicles under the contract and a manufacturer’s warranty;

(B)

the franchisee is a component of the franchisor’s distribution system as an independent business;

(C)

the franchisee is substantially associated with the franchisor’s trademark, tradename, and commercial symbol;

(D)

the franchisee’s business substantially relies on the franchisor for a continued supply of motor vehicles, parts, and accessories; or

(E)

any right, duty, or obligation granted or imposed by this chapter is affected.

(16)

“Franchised dealer” means a person who:

(A)

holds a franchised motor vehicle dealer’s license issued by the board under this chapter and Chapter 503 (Dealer’s and Manufacturer’s Vehicle License Plates), Transportation Code; and

(B)

is engaged in the business of buying, selling, or exchanging new motor vehicles and servicing or repairing motor vehicles under a manufacturer’s warranty at an established and permanent place of business under a franchise in effect with a manufacturer or distributor.

(17)

“General distinguishing number” means a dealer license issued by the board under Chapter 503 (Dealer’s and Manufacturer’s Vehicle License Plates), Transportation Code.

(17-a)

“Hearings examiner” means a person employed by the department to preside over hearings under this chapter.

(17-b)

“Independent mobility motor vehicle dealer” means a nonfranchised dealer who:

(A)

holds a general distinguishing number issued by the board under Chapter 503 (Dealer’s and Manufacturer’s Vehicle License Plates), Transportation Code;

(B)

holds a converter’s license issued under this chapter;

(C)

is engaged in the business of buying, selling, or exchanging mobility motor vehicles and servicing or repairing the devices installed on mobility motor vehicles at an established and permanent place of business in this state; and

(D)

is certified by the manufacturer of each mobility device that the dealer installs, if the manufacturer offers that certification.

(18)

“License holder” means a person who holds a license or general distinguishing number issued by the board under this chapter or Chapter 503 (Dealer’s and Manufacturer’s Vehicle License Plates), Transportation Code.

(19)

“Manufacturer” means a person who manufactures or assembles new motor vehicles.

(20)

“Manufacturer’s statement of origin” means a certificate on a form prescribed by the department showing the original transfer of a new motor vehicle from the manufacturer to the original purchaser.

(20-a)

“Mobility motor vehicle” means a motor vehicle that is designed and equipped to transport a person with a disability and that:

(A)

has a chassis that contains:
(i)
a permanently lowered floor or lowered frame; or
(ii)
a permanently raised roof and raised door;

(B)

contains at least one of the following:
(i)
an electronic or mechanical wheelchair, scooter, or platform lift that enables a person to enter or exit the vehicle while occupying a wheelchair or scooter;
(ii)
an electronic or mechanical wheelchair ramp; or
(iii)
a system to secure a wheelchair or scooter to allow for a person to be safely transported while occupying the wheelchair or scooter; and

(C)

is installed as an integral part or permanent attachment to the motor vehicle’s chassis.

(21)

“Motor home” means a motor vehicle that is designed to provide temporary living quarters and that:

(A)

is built on a motor vehicle chassis as an integral part of or a permanent attachment to the chassis; and

(B)

contains at least four of the following independent life support systems that are permanently installed and designed to be removed only for repair or replacement and that meet the standards of the American National Standards Institute, Standards for Recreational Vehicles:
(i)
a cooking facility with an on-board fuel source;
(ii)
a gas or electric refrigerator;
(iii)
a toilet with exterior evacuation;
(iv)
a heating or air conditioning system with an on-board power or fuel source separate from the vehicle engine;
(v)
a potable water supply system that includes at least a sink, a faucet, and a water tank with an exterior service supply connection; or
(vi)
a 110-125 volt electric power supply.

(22)

“Motor home manufacturer” means a person other than the manufacturer of a motor vehicle chassis who, before the retail sale of the motor vehicle, performs modifications on the chassis that result in the finished product being classified as a motor home.

(23)

“Motor vehicle” means:

(A)

a fully self-propelled vehicle having two or more wheels that has as its primary purpose the transport of a person or persons, or property, on a public highway;

(B)

a fully self-propelled vehicle having two or more wheels that:
(i)
has as its primary purpose the transport of a person or persons or property;
(ii)
is not manufactured for use on public streets, roads, or highways; and
(iii)
meets the requirements for a certificate of title;

(C)

an engine, transmission, or rear axle, regardless of whether attached to a vehicle chassis, manufactured for installation in a vehicle that has:
(i)
the transport of a person or persons, or property, on a public highway as its primary purpose; and
(ii)
a gross vehicle weight rating of more than 16,000 pounds; or

(D)

a towable recreational vehicle.

(23-a)

“New mobility motor vehicle” means a mobility motor vehicle that has not been the subject of a retail sale, regardless of the mobility motor vehicle’s mileage.

(24)

“New motor vehicle” means a motor vehicle that has not been the subject of a retail sale regardless of the mileage of the vehicle.

(25)

“Nonfranchised dealer” means a person who holds an independent motor vehicle dealer’s general distinguishing number, an independent mobility motor vehicle dealer’s general distinguishing number, or a wholesale motor vehicle dealer’s general distinguishing number issued by the board under Chapter 503 (Dealer’s and Manufacturer’s Vehicle License Plates), Transportation Code.

(26)

“Party” means a person or agency named or admitted as a party and whose legal rights, duties, or privileges are to be determined by the board after an opportunity for adjudicative hearing.

(27)

“Person” means a natural person, partnership, corporation, association, trust, estate, or any other legal entity.

(27-a)

“Property use agreement” means a contract, other than a franchise, between a franchised dealer and a manufacturer, distributor, or representative that grants the manufacturer, distributor, or representative the right to regulate the franchised dealer’s use of the dealership and other facilities covered by the franchise.

(28)

“Relocate” means to transfer an existing dealership operation to facilities at a different location, including a transfer that results in a consolidation or dualing of an existing dealer’s operation.

(29)

“Representative” means a person who:

(A)

is or acts as an agent or employee for a manufacturer, distributor, or converter; and

(B)

performs any duty in this state relating to promoting the distribution or sale of new motor vehicles or contacts dealers in this state on behalf of a manufacturer, distributor, or converter.

(30)

“Retail sale” means any sale of a motor vehicle other than:

(A)

a sale in which the purchaser acquires a vehicle for resale; or

(B)

a sale of a vehicle that is operated in accordance with Section 503.061 (Dealer’s License Plates), Transportation Code.

(31)

“Rule”:

(A)

means a statement by the board of general applicability that:
(i)
implements, interprets, or prescribes law or policy; or
(ii)
describes the procedure or practice requirements of the board;

(B)

includes the amendment or repeal of a prior rule; and

(C)

does not include a statement regarding only the internal management or organization of the board and not affecting the rights of a person not connected with the board.

(32)

“Towable recreational vehicle” means a nonmotorized vehicle that:

(A)

was originally designed and manufactured primarily to provide temporary human habitation in conjunction with recreational, camping, or seasonal use;

(B)

meets the requirements to be issued a certificate of title and registration by the department as a travel trailer through a county tax assessor-collector;

(C)

is permanently built on a single chassis;

(D)

contains at least one life support system; and

(E)

is designed to be towable by a motor vehicle.

(33)

Repealed by Acts 2009, 81st Leg., R.S., Ch. 933, Sec. 2U.02, eff. September 1, 2009.

(34)

“Vehicle lease” means a transfer of the right to possess and use a motor vehicle for a term of more than 180 days in return for consideration.

(35)

“Vehicle lease facilitator” means a person, other than a franchised dealer, a vehicle lessor, or a bona fide employee of a franchised dealer or vehicle lessor, who:

(A)

holds the person out to any other person as a “motor vehicle leasing company” or “motor vehicle leasing agent,” or uses a similar title, to solicit or procure another person to enter into an agreement to become the lessee of a motor vehicle that is not, and will not be, titled in the name of or registered to the facilitator;

(B)

otherwise solicits another person to enter into an agreement to become a lessee of a motor vehicle that is not, and will not be, titled in the name of or registered to the facilitator; or

(C)

is otherwise engaged in the business of securing lessees or prospective lessees of a motor vehicle that is not, and will not be, titled in the name of or registered to the facilitator.

(36)

“Vehicle lessor” means a person who leases or offers to lease a motor vehicle to another person under a lease agreement.

(37)

“Warranty work” means parts, labor, and any other expenses incurred by a franchised dealer in complying with the terms of a manufacturer’s or distributor’s warranty.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.601(a), 14A.602, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 281 (H.B. 2702), Sec. 7.01, eff. June 14, 2005.
Acts 2007, 80th Leg., R.S., Ch. 710 (H.B. 2216), Sec. 1, eff. June 15, 2007.
Acts 2009, 81st Leg., R.S., Ch. 933 (H.B. 3097), Sec. 2U.01, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 933 (H.B. 3097), Sec. 2U.02, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 933 (H.B. 3097), Sec. 3I.02, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 933 (H.B. 3097), Sec. 3I.10, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 137 (S.B. 529), Sec. 1, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 1290 (H.B. 2017), Sec. 1, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1135 (H.B. 2741), Sec. 5, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1379 (H.B. 1692), Sec. 1, eff. January 1, 2014.
Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 8, eff. September 1, 2017.

Source: Section 2301.002 — Definitions, https://statutes.­capitol.­texas.­gov/Docs/OC/htm/OC.­2301.­htm#2301.­002 (accessed Apr. 20, 2024).

2301.001
Construction
2301.002
Definitions
2301.003
Effect on Agreements
2301.004
Chapter Exclusive
2301.005
Title Changes
2301.006
Brokers Prohibited
2301.007
Towing Vehicle by License Holder
2301.0045
Nonapplicability of Chapter to Assembled Vehicles and Hobbyist
2301.103
Personnel
2301.104
Hearings Examiners
2301.151
General Jurisdiction of Board
2301.152
General Duties of Board
2301.153
General Powers of Board
2301.154
Delegation of Powers
2301.155
Rules
2301.156
Deposit of Revenue
2301.160
Tolling of Time Limit During Mediation
2301.201
Public Interest Information
2301.202
Complaints
2301.203
Complaint Investigation and Disposition
2301.204
Complaint Concerning Vehicle Defect
2301.205
Notice of Complaint Procedure
2301.251
License Required: Generally
2301.252
License Required: Sale of New Motor Vehicles
2301.253
License Required: Vehicle Lease Facilitators
2301.254
License Not Required for Certain Vehicle Lessors or Vehicle Lease Facilitators
2301.255
Nonfranchised Dealers
2301.256
Review of New Applications
2301.257
Application for Dealer’s License
2301.258
General Requirements for Application for Manufacturer’s, Distributor’s, or Converter’s License
2301.259
Application for Manufacturer’s License
2301.260
Application for Distributor’s License
2301.261
Application for Vehicle Lessor’s License
2301.262
Application for Vehicle Lease Facilitator License
2301.263
License Issued Subject to New Law and Rules
2301.264
License Fees
2301.265
Service of Process on License Holder
2301.266
Duplicate License
2301.301
License Term and Renewal
2301.302
Notice of License Expiration
2301.303
Renewal of Dealer’s License
2301.304
Procedure for Renewal of Certain Licenses
2301.351
General Prohibition
2301.352
Prohibition: Requiring Additional Equipment After Retail Sale
2301.353
Prohibition: Performance of Obligation Under Agreement with Manufacturer
2301.354
Use of Signs
2301.355
Use of Multiple Locations
2301.356
Notice of Certain Proposed Changes
2301.357
Prohibited Fee
2301.358
Vehicle Show or Exhibition
2301.359
Transfer of Ownership by Dealer
2301.360
Review by Board Following Denial of Transfer
2301.361
Independent Mobility Motor Vehicle Dealer
2301.362
Offsite Sales
2301.363
Required Notice
2301.401
Warranty, Preparation, and Delivery Requirements
2301.402
Rate of Compensation
2301.403
Adjustment of Warranty Labor Rate
2301.404
Time for Payment
2301.405
Charge Back to Dealer
2301.406
Prohibited Requirements for Payment
2301.451
Prohibition: Items Not Ordered
2301.452
Delivery of Motor Vehicle or Part
2301.453
Termination or Discontinuance of Franchise
2301.454
Modification or Replacement of Franchise
2301.455
Determination of Good Cause for Termination, Discontinuance, Modification, or Replacement
2301.456
Use of Advertising
2301.457
Prohibition: Change of Franchised Dealer’s Capital Structure
2301.458
Prohibition: Change in Dealer Ownership
2301.459
Prohibition: Use of Promissory Note, Security Agreement, or Insurance Policy
2301.460
Warranty, Preparation, or Delivery Agreement Obligations
2301.461
Liability of Franchised Dealer
2301.462
Succession Following Death of Franchised Dealer
2301.463
Prohibition: Payment of Rebate by Franchised Dealer
2301.464
Relocation of Franchise
2301.465
Payment to Franchised Dealer Following Termination of Franchise
2301.466
Arbitration
2301.467
Prohibitions: Sales Standards, Relocations, Facility Changes, Purchase of Equipment
2301.468
Inequitable Treatment of Dealers or Franchisees
2301.469
Costs of Product Recall
2301.470
Prohibition: Conditions for Financing Motor Vehicle
2301.471
Use of Financing Subsidiary
2301.472
Addition of Line-make
2301.473
Models Within Line-make
2301.474
Payment of Costs for Administrative or Civil Proceeding
2301.475
Manufacturer or Distributor Incentive Programs: Audit or Chargeback
2301.476
Manufacturer or Distributor Ownership, Operation, or Control of Dealership
2301.477
Manufacturer Doing Business in This State
2301.478
Action on Franchise
2301.479
Adverse Action in Connection with Export of Vehicle
2301.480
Disclosure of Certain Information
2301.481
Property Use Agreement
2301.482
Certain Property Use Agreements
2301.483
Specific Use Agreements
2301.521
Definition
2301.522
Mediation Applicable
2301.523
Mediator
2301.524
Location and Schedule of Mediation
2301.525
Law Applicable
2301.526
Costs of Mediation
2301.527
Jurisdiction of Board
2301.528
Effect of Mediation on Chapter
2301.529
Outcome of Mediation
2301.551
Acceptance and Payment of Fees by Vehicle Lessor
2301.552
Appointment of Vehicle Lease Facilitator
2301.553
Disclosure of Fee Required
2301.554
Terms of Lease: Foreign Countries
2301.555
Limitations on Vehicle Lease Facilitator
2301.556
Use of Certain Terms
2301.601
Definitions
2301.602
Duty of Board
2301.603
Conformance with Warranty Required
2301.604
Replacement of or Refund for Vehicle
2301.605
Rebuttable Presumption--reasonable Number of Attempts
2301.606
Conduct of Proceedings
2301.607
Exhaustion of Administrative Remedies
2301.608
Assessment of Costs for Replacement or Refund
2301.609
Judicial Review
2301.610
Disclosure Statement
2301.611
Annual Report on Repurchased or Replaced Vehicles
2301.612
Open Records Exception
2301.613
Notice to Buyer
2301.651
Denial, Revocation, or Suspension Generally
2301.652
Denial of License Application: Dealership
2301.653
Revocation or Suspension of Manufacturer’s or Distributor’s License
2301.654
Probation
2301.701
Definition
2301.702
Conflict with Other Law
2301.703
Hearing Required in Contested Case
2301.704
Hearings Examiner
2301.705
Notice of Contested Case Hearing
2301.706
Notice of Rulemaking Hearing
2301.707
Contents of Hearing Notice
2301.708
Conduct of Hearing
2301.709
Review by Board
2301.710
Dismissal of Complaint
2301.711
Orders and Decisions
2301.712
Filing Fee
2301.713
Rehearing
2301.751
Judicial Review Generally
2301.752
Time for Filing
2301.753
Additional Evidence
2301.754
Dismissal for Failure to Prosecute
2301.755
Effect of Appeal on Order
2301.756
Review of Interlocutory Order
2301.801
Civil Penalty
2301.802
Cease and Desist Order
2301.803
Statutory Stay
2301.804
Suit for Injunctive Relief or Civil Penalty
2301.805
Relief Under Other Law
2301.806
Board Exempt from Filing Fee
2301.807
Refund
2301.851
Certain Charges Included in Customer Agreement
2301.852
Use or Retention of Salvage Motor Vehicle
2301.853
Criminal Penalty
2301.2575
Request for Dealer’s License Application Confidential
2301.4651
Additional Payment to Franchised Dealer in Certain Situations
2301.4671
Franchise Provision Establishing Restriction on Dealer’s Use of Dealership Property
2301.4749
Manufacturer or Distributor Incentive Programs: Payment to Dealer
2301.5555
Authority to Sign Vehicle Lease as Lessor
2301.6521
Right to Protest: Certain Relocations
2301.6522
Right to Protest: Economically Impaired Dealer
2301.7025
Limitations Period for Certain Causes of Action by License Holders

Accessed:
Apr. 20, 2024

§ 2301.002’s source at texas​.gov