Texas Administrative Code
Title 43 - TRANSPORTATION
Part 10 - TEXAS DEPARTMENT OF MOTOR VEHICLES
Chapter 215 - MOTOR VEHICLE DISTRIBUTION
Subchapter D - GENERAL DISTINGUISHING NUMBERS AND IN-TRANSIT LICENSES
Section 215.140 - Established and Permanent Place of Business Premises Requirements
Universal Citation: 43 TX Admin Code ยง 215.140
Current through Reg. 49, No. 38; September 20, 2024
(a) A dealer must meet the following requirements at each licensed location and maintain the requirements during the term of the license. If multiple dealers are licensed at a location, each dealer must maintain the following requirements during the entire term of the license.
(1) Business hours for retail
dealers.
(A) A retail dealer's office must be
open at least four days per week for at least four consecutive hours per day
and may not be open solely by appointment.
(B) The retail dealer's business hours for
each day of the week must be posted at the main entrance of the retail dealer's
office in a manner and location that is accessible to the public. The owner or
a bona fide employee of the retail dealer shall be at the retail dealer's
licensed location during the posted business hours for the purposes of buying,
selling, exchanging, or leasing vehicles. If the owner or a bona fide employee
is not available to conduct business during the retail dealer's posted business
hours due to special circumstances or emergencies, a separate sign must be
posted indicating the date and time the retail dealer will resume operations.
Regardless of the retail dealer's business hours, the retail dealer's telephone
must be answered from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide employee,
owner, answering service, voicemail service, or answering machine. A caller
must be able to speak to a natural person or leave a message during these
hours.
(2) Business
hours for wholesale motor vehicle dealers. A dealer that holds only a wholesale
motor vehicle dealer's GDN must post its business hours at the main entrance of
the wholesale motor vehicle dealer's office in a manner and location that is
accessible to the public. A wholesale motor vehicle dealer or bona fide
employee shall be at the wholesale motor vehicle dealer's licensed location at
least two weekdays per week for at least two consecutive hours per day. A
wholesale motor vehicle dealer may not be open solely by appointment.
Regardless of the wholesale motor vehicle dealer's business hours, the
wholesale motor vehicle dealer's telephone must be answered from 8:00 a.m. to
5:00 p.m. weekdays by a bona fide employee, owner, answering service, voicemail
service, or answering machine. A caller must be able to speak to a natural
person or leave a message during these hours.
(3) Business sign requirements for retail
dealers.
(A) A retail dealer must display a
conspicuous, permanent sign with letters at least six inches in height showing
the retail dealer's business name or assumed name substantially similar to the
name reflected on the retail dealer's GDN under which the retail dealer
conducts business. A business sign is considered conspicuous if it is easily
visible to the public within 100 feet of the main entrance of the business
office. A business sign is considered permanent only if it is made of durable,
weather-resistant material.
(B) The
sign must be permanently mounted at the physical address listed on the
application for the retail dealer's GDN. A business sign is considered
permanently mounted if bolted to an exterior building wall or bolted or welded
to a dedicated sign pole or sign support permanently installed in the
ground.
(C) A retail dealer may use
a temporary sign or banner if that retail dealer can show proof that a sign
that meets the requirements of this paragraph has been ordered and provides a
written statement that the sign will be promptly and permanently mounted upon
delivery.
(D) A retail dealer is
responsible for ensuring that the business sign complies with municipal
ordinances, and that any lease signage requirements are consistent with the
signage requirements in this paragraph.
(4) Business sign requirements for wholesale
motor vehicle dealers.
(A) Exterior Sign
(i) A wholesale motor vehicle dealer must
display a conspicuous, permanent sign with letters at least six inches in
height showing the wholesale motor vehicle dealer's business name or assumed
name substantially similar to the name reflected on the wholesale motor vehicle
dealer's GDN under which the wholesale motor vehicle dealer conducts business.
Effective September 1, 2023, the sign must also include the statement that
"Purchasers must be Licensed Dealers" in letters at least three inches in
height. A business sign is considered conspicuous if it is easily visible to
the public within 100 feet of the main entrance of the business office. A
business sign is considered permanent only if it is made of durable,
weather-resistant material.
(ii)
The sign must be permanently mounted on the business property at the physical
address listed on the application. A business sign is considered permanently
mounted if bolted to an exterior building wall or bolted or welded to a
dedicated sign pole or sign support permanently installed in the ground. A
wholesale motor vehicle dealer may use a temporary exterior sign or banner if
the wholesale motor vehicle dealer can show proof that a sign that meets the
requirements of this paragraph has been ordered and provides a written
statement that the sign will be promptly and permanently mounted upon
delivery.
(B) Interior
Sign
(i) If the wholesale motor vehicle
dealer's office is located in an office building with one or more other
businesses and an outside sign is not permitted by the property owner, a
conspicuous permanent business sign permanently mounted on or beside the main
door to the wholesale motor vehicle dealer's office with letters at least two
inches in height is acceptable. Effective September 1, 2023, the sign must also
include the statement that "Purchasers must be Licensed Dealers" in letters at
least one inch in height.
(ii) An
interior business sign is considered conspicuous if it is easily visible to the
public within 10 feet of the main entrance of the wholesale motor vehicle
dealer's office. An interior sign is considered permanent if made from durable
material and has lettering that cannot be changed. An interior sign is
considered permanently mounted if bolted or otherwise permanently affixed to
the main door or nearby wall. A wholesale motor vehicle dealer may use a
temporary interior sign or banner if the wholesale motor vehicle dealer can
show proof that a sign that meets the requirements of this paragraph has been
ordered and provides a written statement that the sign will be promptly and
permanently mounted upon delivery.
(C) A wholesale motor vehicle dealer is
responsible for ensuring that the business sign complies with municipal
ordinances and that any lease signage requirements are consistent with the
signage requirements in this paragraph.
(5) Office requirements for a retail dealer
and a wholesale motor vehicle dealer.
(A) A
dealer's office must be located in a building with a permanent roof and
connecting exterior walls on all sides.
(B) A dealer's office must comply with all
applicable municipal ordinances, including municipal zoning ordinances. The
dealer is responsible for obtaining a certificate of occupancy, certificate of
compliance, or other required document issued by a municipal government to show
compliance, including a new certificate or document when the building is
altered or remodeled, or when the building use changes.
(C) A dealer's office may not be located in a
residence, apartment, hotel, motel, rooming house, or any room or building not
open to the public.
(D) A dealer's
office may not be located in a restaurant, gas station, or convenience store,
unless the office has a separate entrance door that does not require a dealer's
customer to pass through the other business.
(E) A dealer's office may not be virtual or
provided by a subscription for office space or office services. Access to an
office space or office services is not considered an established and permanent
location.
(F) The physical address
of the dealer's office must be in Texas and recognized by the U.S. Postal
Service, be capable of receiving U.S. mail, and have an assigned emergency
services property address. The department will not mail a dealer's license
plate to an out-of-state address.
(G) A portable-type office building may
qualify as an office only if the building meets the requirements of this
section and is not a readily moveable trailer or other vehicle.
(H) The dealer's office space must:
(i) include at least 100 square feet of
interior floor space, exclusive of hallways, closets, or restrooms;
(ii) have a minimum seven-foot-high
ceiling;
(iii) accommodate required
office equipment; and
(iv) allow a
dealer and customer to safely access the office and conduct business in private
while seated.
(6) Required office equipment for a retail
dealer and a wholesale motor vehicle dealer. At a minimum, a dealer's office
must be equipped with:
(A) a desk;
(B) two chairs;
(C) internet access; and
(D) a working telephone number listed in the
business name or assumed name under which the dealer conducts
business.
(7) Number of
retail dealers in one building. Not more than four retail dealers may be
located in the same building. Each retail dealer located in the same building
must meet the requirements of this section.
(8) Number of wholesale motor vehicle dealers
in one office building. Not more than eight wholesale motor vehicle dealers may
be located in the same office building. Each wholesale motor vehicle dealer
located in the same office building must meet the requirements of this
section.
(9) Office sharing
prohibition for retail dealers and wholesale motor vehicle dealers. Unless
otherwise authorized by the Transportation Code, a retail dealer and a
wholesale motor vehicle dealer licensed after September 1, 1999, may not be
located in the same building.
(10)
Dealer housed with other business.
(A) If a
person conducts business as a dealer in conjunction with another business owned
by the same person and under the same name as the other business, the same
telephone number may be used for both businesses. If the name of the dealer
differs from the name of the other business, a separate telephone listing and a
separate sign for each business are required.
(B) A person may conduct business as a dealer
in conjunction with another business not owned by that person only if the
dealer owns the property on which business is conducted or has a separate lease
agreement from the owner of that property that meets the requirements of this
section. The same telephone number may not be used by both businesses. The
dealer must have separate business signs, telephone listings, and office
equipment required under this section.
(C) A dealer's office must have permanent
interior walls on all sides and be separate from any public area used by
another business.
(11)
Display area and storage lot requirements.
(A)
A wholesale motor vehicle dealer is not required to have display space at the
wholesale motor vehicle dealer's business premises.
(B) A retail dealer must have an area
designated as display space for the retail dealer's inventory. A retail
dealer's designated display area must comply with the following requirements.
(i) The display area must be located at the
retail dealer's physical business address or contiguous to the retail dealer's
physical address. The display area may not be in a storage lot.
(ii) The display area must be of sufficient
size to display at least five vehicles of the type for which the GDN is issued.
The display area must be reserved exclusively for the retail dealer's inventory
and may not be used for customer parking, employee parking, general storage, or
shared or intermingled with another business or a public parking area, a
driveway to the office, or another dealer's display area.
(iii) The display area may not be on a public
easement, right-of-way, or driveway unless the governing body having
jurisdiction of the easement, right-of-way, or driveway expressly consents in
writing to use as a display area. If the easement, right-of-way, or driveway is
a part of the state highway system, use as a display area may only be
authorized by a lease agreement.
(iv) If a retail dealer shares a display or
parking area with another business, including another dealer, the dealer's
vehicle inventory must be separated from the other business's display or
parking area by a material object or barrier that cannot be readily removed. A
barrier that cannot be readily removed is one that cannot be easily moved by
one person and typically weighs more than 50 pounds. A material object or
barrier must be in place on all sides except for the space necessary to allow
for entry and exit of vehicle inventory.
(v) If a dealer's business location includes
gasoline pumps or a charging station or includes another business that sells
gasoline or has a charging station, the dealer's display area may not be part
of the parking area for fuel or charging station customers and may not
interfere with access to or from the gasoline pumps, fuel tanks, charging
station, or fire prevention equipment.
(vi) The display area must be adequately
illuminated if the retail dealer is open at night so that a vehicle for sale
can be properly inspected by a potential buyer.
(vii) The display area may be located inside
a building; however, if multiple dealers are displaying vehicles inside a
building, each dealer's display area must be separated by a material object or
barrier that cannot be readily removed. A barrier that cannot be readily
removed is one that cannot be easily moved by one person and typically weighs
more than 50 pounds. A material object or barrier must be in place on all sides
except for the space necessary to allow for entry and exit of vehicle
inventory.
(C) A GDN
holder may maintain a storage lot only if the storage lot is not accessible to
the public and no sales activity occurs at the storage lot. A sign stating the
license holder's name, contact information, and the fact the property is a
storage lot is permissible. A storage lot must be fenced or in an
access-controlled location to be considered not accessible to the public. A GDN
holder or applicant must disclose the address of a storage lot or the location
of a vehicle in inventory upon request by the department.
(12) Dealers authorized to sell salvage motor
vehicles. If an independent motor vehicle dealer offers a salvage motor vehicle
for sale on the dealer's premises, the vehicle must be clearly and
conspicuously marked with a sign informing a potential buyer that the vehicle
is a salvage motor vehicle.
(13)
Lease requirements. If the premises from which a dealer conducts business,
including any display area, is not owned by the dealer, the dealer must
maintain a lease that is continuous during the period of time for which the
dealer's license will be issued. The lease agreement must be on a properly
executed form containing at a minimum:
(A) the
name of the property owner as the lessor of the premises and the name of the
dealer as the tenant or lessee of the premises;
(B) the period of time for which the lease is
valid;
(C) the street address or
legal description of the property, provided that if only a legal description of
the property is included, a dealer must attach a statement verifying that the
property description in the lease agreement is the physical street address
identified on the application as the physical address for the established and
permanent place of business;
(D)
the signature of the property owner as the lessor and the signature of the
dealer as the tenant or lessee; and
(E) if the lease agreement is a sublease in
which the property owner is not the lessor, the dealer must also obtain a
signed and notarized statement from the property owner including the following
information:
(i) property owner's full name,
email address, mailing address, and phone number; and
(ii) property owner's statement confirming
that the dealer is authorized to sublease the location and may operate a
vehicle sales business from the location.
(14) Dealer must display GDN and bond notice.
A dealer must display the dealer's GDN issued by the department at all times in
a manner that makes the GDN easily readable by the public and in a conspicuous
place at each place of business for which the dealer's GDN is issued. A dealer
required to obtain a surety bond must post a bond notice adjacent to and in the
same manner as the dealer's GDN is displayed. The notice must include the bond
company name, bond identification number, and procedure by which a claimant can
recover under the bond. The notice must also include the department's website
address and notify a consumer that a dealer's surety bond information may be
obtained by submitting a request to the department. If the dealer's GDN applies
to more than one location, a copy of the GDN and bond notice must be displayed
in each supplemental location.
(b) Wholesale motor vehicle auction premises requirements. A wholesale motor vehicle auction must comply with the following premises requirements:
(1) a wholesale motor
vehicle auction GDN holder must hold a motor vehicle auction on a regular
periodic basis at the licensed location, and an owner or bona fide employee
must be available at the business location during each auction and during
posted business hours. If the owner or a bona fide employee is not available to
conduct business during the posted business hours due to special circumstances
or emergencies, a separate sign must be posted indicating the date and time
operations will resume.
(2) the
business telephone must be answered from 8:00 a.m. to 5:00 p.m. weekdays by a
bona fide employee, owner, answering service, voicemail service, or answering
machine. A caller must be able to speak to a natural person or leave a message
during these hours.
(3) a wholesale
motor vehicle auction GDN holder must display a business sign that meets the
following requirements:
(A) The sign must be a
conspicuous, permanent sign with letters at least six inches in height showing
the business name or assumed name substantially similar to the name reflected
on the GDN under which the GDN holder conducts business. A business sign is
considered conspicuous if it is easily visible to the public within 100 feet of
the main entrance of the business office. A business sign is considered
permanent only if it is made of durable, weather-resistant material.
(B) The sign must be permanently mounted at
the physical address listed on the application for the wholesale motor vehicle
auction GDN. A business sign is considered permanently mounted if bolted to an
exterior building wall or bolted or welded to a dedicated sign pole or sign
support permanently installed in the ground.
(C) An applicant may use a temporary sign or
banner if the applicant can show proof that a sign that meets the requirements
of this paragraph has been ordered and provides a written statement that the
sign will be promptly and permanently mounted upon delivery.
(D) An applicant or holder is responsible for
ensuring that the business sign complies with municipal ordinances, and that
any lease signage requirements are consistent with the signage requirements in
this paragraph.
(4) The
business office of a wholesale motor vehicle auction GDN applicant and holder
must meet the following requirements:
(A) The
office must be located in a building with a permanent roof and connecting
exterior walls on all sides.
(B)
The office must comply with all applicable municipal ordinances, including
municipal zoning ordinances. The wholesale motor vehicle auction is responsible
for obtaining a certificate of occupancy, certificate of compliance, or other
required document issued by a municipal government to show compliance,
including a new certificate or document when the building is altered or
remodeled, or when the building use changes.
(C) The office may not be located in a
residence, apartment, hotel, motel, rooming house, or any room or building not
open to the public.
(D) The office
may not be located in a restaurant, gas station, or convenience store, unless
the office has a separate entrance door that does not require a customer to
pass through the other business.
(E) The office may not be virtual or provided
by a subscription for office space or office services. Access to office space
or office services is not considered an established and permanent
location.
(F) The physical address
of the office must be in Texas and recognized by the U.S. Postal Service,
capable of receiving U.S. mail, and have an assigned emergency services
property address.
(G) A
portable-type office building may qualify as an office only if the building
meets the requirements of this section and is not a readily moveable trailer or
other vehicle.
(5) A
wholesale motor vehicle auction GDN applicant and holder must have the
following office equipment:
(A) a
desk;
(B) a chair;
(C) internet access; and
(D) a working telephone number listed in the
business name or assumed name under which business is conducted.
(6) A wholesale motor vehicle
auction must meet the following display area and storage lot requirements:
(A) The area designated as display space for
inventory must be located at the physical business address or contiguous to the
physical address. The display area may not be in a storage lot.
(B) The display area must be of sufficient
size to display at least five vehicles. Those spaces must be reserved
exclusively for inventory and may not be used for customer parking, employee
parking, general storage, or shared or intermingled with another business or a
public parking area, or a driveway to the office.
(C) The display area may not be on a public
easement, right-of-way, or driveway unless the governing body having
jurisdiction of the easement, right-of-way, or driveway expressly consents in
writing to use as a display area. If the easement, right-of-way, or driveway is
a part of the state highway system, use as a display area may only be
authorized by a lease agreement.
(D) If the business location includes
gasoline pumps or a charging station or includes another business that sells
gasoline or has a charging station, the display area may not be part of the
parking area for fuel or charging station customers and may not interfere with
access to or from the gasoline pumps, fuel tanks, charging station, or fire
prevention equipment.
(E) The
display area must be adequately illuminated if open at night so that a vehicle
for sale can be properly inspected by a potential buyer.
(F) The display area may be located inside a
building.
(G) A wholesale motor
vehicle auction may maintain a storage lot only if the storage lot is not
accessible to the public and no sales activity occurs at the storage lot. A
sign stating the business name, contact information, and the fact the property
is a storage lot is permissible. A storage lot must be fenced or in an
access-controlled location to be considered not accessible to the public. A GDN
holder or applicant must disclose the address of a storage lot or the location
of a vehicle in inventory upon request by the department.
(7) A wholesale motor vehicle auction must
meet the following lease requirements if the business premises, including any
display area, is not owned by the wholesale motor vehicle auction:
(A) the applicant or holder must maintain a
lease that is continuous during the period of time for which the GDN will be
issued;
(B) The lease agreement
must be on a properly executed form containing at a minimum:
(i) the name of the property owner as the
lessor of the premises and the name of the GDN applicant or holder as the
tenant or lessee of the premises;
(ii) the period of time for which the lease
is valid;
(iii) the street address
or legal description of the property, provided that if only a legal description
of the property is included, a wholesale motor vehicle auction must attach a
statement verifying that the property description in the lease agreement is the
physical street address identified on the application as the physical address
for the established and permanent place of business;
(iv) the signature of the property owner as
the lessor and the signature of the applicant or holder as the tenant or
lessee; and
(C) if the
lease agreement is a sublease in which the property owner is not the lessor,
the wholesale motor vehicle auction must also obtain a signed and notarized
statement from the property owner including the following information:
(i) property owner's full name, email
address, mailing address, and phone number; and
(ii) property owner's statement confirming
that the wholesale motor vehicle auction is authorized to sublease the location
and may operate a wholesale motor vehicle auction business from the
location.
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