1. (a) No person may engage in business as a dealer unless that person has a currently valid general distinguishing number assigned by the division for each location from which the person engages in business. If a dealer consigns more than five vehicles in a calendar year for sale from a location other than the location for which the dealer holds a general distinguishing number, the dealer must also hold a general distinguishing number for the consignment location.

2. (b) The provisions of subsection (a) of this section do not apply to:

   1. (1) a person who sells or offers for sale fewer than five vehicles of the same type as herein described in a calendar year and such vehicles are owned by him and registered and titled in his name;
   2. (2) a person who sells or offers to sell a vehicle acquired for personal or business use if the person does not sell or offer to sell to a retail buyer and the transaction is not held for the purpose of avoiding the provisions of Transportation Code, §503.001 et seq., and this subchapter;
   3. (3) an agency of the United States, this state, or local government;
   4. (4) a financial institution or other secured party selling a vehicle in which it holds a security interest, in the manner provided by law for the forced sale of that vehicle;
   5. (5) a receiver, trustee, administrator, executor, guardian, or other person appointed by or acting pursuant to the order of a court;
   6. (6) an insurance company selling a vehicle acquired from the owner as the result of paying an insurance claim;
   7. (7) a person selling an antique passenger car or truck that is at least 25 years old or a collector selling a special interest motor vehicle as defined in Transportation Code, §683.077, if the special interest vehicle is at least 12 years old;
   8. (8) a licensed auctioneer who, as a bid caller, sells or offers to sell property to the highest bidder at a bona fide auction if neither legal nor equitable title passes to the auctioneer and if the auction is not held for the purpose of avoiding another provision of Transportation Code, §503.001 et seq., and this subchapter; and provided that if an auction is conducted of vehicles owned, legally or equitably, by a person who holds a general distinguishing number, the auction may be conducted only at a location for which a general distinguishing number has been issued to that person or at a location approved by the division as provided in §215.135 of this subchapter (relating to More than One Location); and

   9. (9) a person who is a domiciliary of another state and who holds a valid dealer license and bond, if applicable, issued by an agency of that state, when the person buys a vehicle from, sells a vehicle to, or exchanges vehicles with a person who:

      1. (A) holds a current valid general distinguishing number issued by the division, if the transaction is not intended to avoid the terms of Transportation Code, §503.001 et seq.; or
      2. (B) is a domiciliary of another state if the person holds a valid dealer license and bond, if applicable, issued by that state, and if the transaction is not intended to avoid the terms of Transportation Code, §503.001 et seq.

3. (c) Application for a general distinguishing number shall be on a form prescribed by the division properly completed by the applicant showing all information requested thereon and shall be submitted to the division accompanied by the following:

   1. (1) proof of a $25,000 surety bond as provided in §215.137 of this subchapter (relating to Security Requirements);
   2. (2) the fee for the general distinguishing number as prescribed by law for each type of license requested;
   3. (3) the fee as prescribed by law for each dealer metal plate requested as prescribed by law;
   4. (4) a copy of each assumed name certificate on file with the Office of the Secretary of State or county clerk; and

   5. (5) a photocopy of at least one of the following documents for the owner, president, or managing partner of the dealership:

      1. (A) current driver's license;
      2. (B) current Department of Public Safety identification;
      3. (C) current passport; or
      4. (D) current United States armed forces identification.
4. (d) A person who applies for a general distinguishing number and will operate as a dealer under a name other than the name of that person shall use the name under which that person is authorized to do business, as filed with the Office of the Secretary of State or county clerk, and the assumed name of such legal entity shall be recorded on the application using the letters "DBA."
5. (e) If the general distinguishing number is issued to a corporation, the dealer's name and assumed name used by the dealer, as on file with the Office of the Secretary of State, shall be recorded on the application.
6. (f) A wholesale dealer licensee may buy, sell, or exchange vehicles with licensed dealers. A wholesale dealer licensee holder may not sell or exchange vehicles at retail.
7. (g) An independent mobility motor vehicle dealer shall retain and produce for inspection all records relating to the license requirements under Occupations Code, §2301.002(17-a) and all information and records required under Transportation Code, §503.0295.
8. (h) An application for a general distinguishing number may be denied if an applicant for such license has committed any act that could result in license cancellation or revocation under Transportation Code, §503.001 et seq.; Occupations Code, §2301.001 et seq.; or any rule or regulation of the department.
9. (i) Upon request by the department, the applicant shall submit documents demonstrating that the applicant owns the real property on which the business is situated or has a written lease for the property that has a term of not less than the term of the license.

Source Note:The provisions of this §215.133 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective August 2, 2012, 37 TexReg 5637.