1. (a) The following words and terms, when used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise. Consignment--The sale or offer for sale by a person other than the owner under terms of a verbal or written authorization from the owner.

2. (b) A person shall apply for a license as a dealer by submitting a properly completed, department-approved application form, accompanied by the following:

   1. (1) the fee prescribed by law for each license requested;

   2. (2) photographs clearly showing:

      1. (A) the permanent sign clearly indicating the name of the business;
      2. (B) the front of the business with public access; and
      3. (C) space sufficient for office, service area, and display of products;
   3. (3) a copy of the Tax Permit issued by the Comptroller under Chapter 151, Tax Code;
   4. (4) verification of all assumed name(s), if applicable, in the form of assumed name certificate(s) on file with the Secretary of State or county clerk;
   5. (5) a photocopy of the current driver's license or Department of Public Safety identification of the owner, president or managing partner of the business; and
   6. (6) a list of dealer agreements.

3. (c) A person shall apply for a license as a distributor or manufacturer by submitting a properly completed, department-approved application form accompanied by the following:

   1. (1) the fee prescribed by law for each license requested;
   2. (2) verification of all assumed name(s), if applicable, in the form of assumed name certificate(s) on file with the Secretary of State or county clerk;
   3. (3) a complete list of manufacturers represented by a distributorship; and
   4. (4) a complete list of distributors, dealers, and manufacturers.

4. (d) The department may issue a license under this subchapter if:

   1. (1) the applicant submits a complete application form and required attachments; and
   2. (2) the applicant signs a department-provided affidavit stating full compliance with state law including Occupation Code, Chapter 2352, concerning Franchise Agreements, when required.

5. (e) A license holder shall notify the department in writing within 10 days if there is any change of:

   1. (1) ownership;
   2. (2) business name;
   3. (3) physical location;
   4. (4) dealer agreement;
   5. (5) distributors, dealers, or representatives; or
   6. (6) address or phone information.
6. (f) The licenses issued under this subchapter to dealers must be publicly displayed at all times in the place of business.

7. (g) A license holder must keep a complete record available for inspection in the place of business relating to all vessels, motorboats, and outboard motors purchased, sold, or displayed for sale for a minimum of 24 months. Content of records must include the:

   1. (1) date of purchase;
   2. (2) date of sale;
   3. (3) hull identification number and/or motor identification number;
   4. (4) name and address of person selling to the dealer;
   5. (5) name and address of person purchasing from the dealer;
   6. (6) name and address of selling dealer or individual if vessel and/or outboard motor is offered for sale by consignment;
   7. (7) a copy of the vessel/outboard motor title/registration receipt;
   8. (8) copies of any and all documents, forms, and agreements applicable to a particular sale, including, but not limited to title applications, work-up sheets, Manufacturer's Certificates of Origin, titles or photocopies of the front and back of titles, factory invoices, sales contracts, retail installment agreements, buyer's orders, bills of sale, waivers, or other agreements between the seller and purchaser; and
   9. (9) copies of written consignment agreements or power of attorney for vessels, motorboats, or outboard motors.

Source Note:The provisions of this §53.110 adopted to be effective July 7, 2004, 29 TexReg 6309.