Section 215.102 - Application Requirements(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: (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;(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;(VI) distributor responsibilities under the agreement related to warranty matters under Occupations Code, Chapter 2301, and franchised dealer matters under Occupations Code, Chapter 2301, Subchapter H, Dealers, Subchapter I, Warranties: Reimbursement of Dealer, Subchapter J, Manufacturers, Distributors, and Representative, and Subchapter K, Mediation Between Dealer and Manufacturer or Distributor;(VII) party or person responsible for providing warranty services; and(VIII) motor vehicle line-makes and vehicle types included in the agreement; or(ii) a completed department-provided questionnaire containing the information required in clause (i) signed by the applicant and the manufacturer as true and complete. An authorized representative for the manufacturer may sign the questionnaire, however, the applicant or applicant's representative may not sign the questionnaire on behalf of a manufacturer.(H) if applying for a franchised dealer's license, pages of the executed franchise agreement containing at minimum the following:(i) the legal business name of each party;(ii) authorized signature of each party;(iii) authorized dealership location;(iv) list of motor vehicle line-makes and vehicle types to be sold or serviced; and(v) a department Evidence of Relocation form signed by the manufacturer or distributor, if applicable; and(I) any other documents required by the department to evaluate the application under current law and board rules.(3) Required fees:(A) the license fee as prescribed by law; and(B) the fee as prescribed by law for each plate requested by the applicant.(f) An applicant 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 a name or 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.(g) A manufacturer or distributor may add a new line-make to an existing license during the license period by submitting a license amendment application and providing brochures, photos, or other documents describing the new line-make sufficient to allow the department to identify the line-make and vehicle product type. A license amendment to add a line-make to a manufacturer's or distributor's license must be approved by the department before the new line-make may be added to a franchised dealer's license.43 Tex. Admin. Code § 215.102
Adopted by Texas Register, Volume 49, Number 17, April 26, 2024, TexReg 2720, eff. 6/1/2024