Section 215.145 - Change of Dealer's Status(a) A dealer's name change requires a new bond or a rider to the existing bond reflecting the new 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 by submitting a license amendment application in the department-designated electronic licensing system. 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 in the department-designated electronic licensing system. 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 operating as a sole proprietor, 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 operating under the current dealer license until the end of the license term.(d) For purposes of subsection (c) of this section, the sole proprietor's 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 must 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) if applicable, a bond in the name of the surviving spouse.(e) For purposes of subsection (c) of this section, a qualifying person who is not the surviving spouse 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 qualified person's name to the existing bond.(f) For purposes of subsection (c) of this section, a qualifying person who is not the surviving spouse must file with the department an application for a new GDN on or before the expiration of the license term in the department-designated electronic licensing system.(g) A determination made under this section does not impact a decision made by the board under Occupations Code, § 2301.462 (relating to Succession Following Death of Franchised Dealer).43 Tex. Admin. Code § 215.145
The provisions of this §215.145 adopted to be effective February 11, 2010, 35 TexReg 883; Amended by Texas Register, Volume 42, Number 06, February 10, 2017, TexReg 578, eff. 2/13/2017; Amended by Texas Register, Volume 49, Number 17, April 26, 2024, TexReg 2726, eff. 6/1/2024