2022 Texas Statutes
Occupations Code
Title 14 - Regulation of Motor Vehicles and Transportation
Subtitle A - Regulations Related to Motor Vehicles
Chapter 2301 - Sale or Lease of Motor Vehicles
Subchapter H. Dealers
Section 2301.360. Review by Board Following Denial of Transfer
Sec. 2301.360. REVIEW BY BOARD FOLLOWING DENIAL OF TRANSFER. (a) A dealer whose application is rejected under Section 2301.359 may file a protest with the board. A protest filed under this section is a contested case.
(b) In a protest under this section, the board must determine whether the rejection was reasonable under the criteria described by Section 2301.359. The burden is on the manufacturer or distributor to prove that the prospective transferee is not qualified under the criteria. The board shall enter an order holding that the prospective transferee either is qualified or is not qualified.
(c) If the board's order is that the prospective transferee is qualified, the dealer's franchise is amended to reflect the change in franchisee, and the manufacturer or distributor shall accept the transfer for all purposes.
(d) If the board's order is that the prospective transferee is not qualified, the board may include in the order:
(1) specific reasons why the prospective transferee is not qualified; and
(2) specific conditions under which the prospective transferee would be qualified.
(e) If the board's order that a prospective transferee is not qualified includes specific conditions under which the prospective transferee would be qualified, the board may retain jurisdiction of the dispute for a time certain to allow the dealer and prospective transferee to meet the conditions.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 684 (H.B. 2640), Sec. 2, eff. September 1, 2009.
