A dealer must meet the following requirements at each location where the dealer sells or offers vehicles for sale.

1. (1) Business hours for retail dealers.

   1. (A) A retail dealer's office facility shall be open at least four days per week for at least four consecutive hours per day between the hours of 8:00 a.m. and 8:00 p.m.
   2. (B) The dealer's business hours for each day of the week must be posted at the main entrance of the dealer's office that is accessible to the public. The owner or a bona fide employee of the dealer shall be at the dealer's licensed location during the posted business hours for the purpose of buying, selling, exchanging, or leasing vehicles. If the owner or a bona fide employee is not available to conduct business during the dealer's posted business hours due to special circumstances or emergencies, a separate sign must be posted indicating the date and time the dealer will resume operations. The dealer shall notify the division in writing of any change in the dealer's standard business hours. Regardless of the retail dealer's business hours the dealer's telephone must be answered from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide employee, answering service, or answering machine.
2. (2) Business hours for wholesale dealers. A dealer who holds only a wholesale license must post its business hours at the main entrance of the dealer's office. A wholesale dealer shall be at the dealer's licensed location for at least two weekdays per week at least two consecutive hours per day between the hours of 8:00 a.m. and 6:00 p.m. Regardless of the wholesale dealer's business hours the dealer's telephone must be answered from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide employee, answering service, or answering machine.
3. (3) Business sign requirements for retail dealers. A retail dealer must display a conspicuous, permanent sign with letters at least six inches in height showing the dealer's business name, or assumed name as reflected on the dealer's license, under which the dealer conducts business. The sign may omit terms such as "Inc.," "LLC," "LP," or similar identifiers of the entity type. The sign must be permanently mounted and must be readable from the street at the address listed on the application for the dealer license. Temporary banners or signs are not acceptable; however, a franchised dealer may, for the purpose of obtaining its license, use a temporary sign or banner if the dealer can show proof that a sign is on order that meets the requirements set out in this paragraph.
4. (4) Business sign requirements for wholesale dealers. A wholesale dealer must display a conspicuous, permanent sign with letters at least six inches in height showing the dealer's business name or assumed name as reflected on the dealer's license, under which the dealer conducts business. The sign may omit terms such as "Inc.," "LLC," "LP," or similar identifiers of the entity type. The sign must be permanently mounted on the business property and shall be on the main door to the dealer's office or on the outside of the building housing the office. If the dealership is located in an office building with one or more other businesses and an outside sign is not permitted by the landlord, a business sign permanently mounted on or beside the main door to the dealer's office with letters at least two inches in height is acceptable. Temporary banners or signs are not acceptable.

5. (5) Office structure for retail and wholesale dealers. Unless otherwise authorized by the Transportation Code, a dealer that files an application for a new license or a supplemental location after May 1, 2008 must conform to the requirements of this paragraph.

   1. (A) The office of a retail or wholesale dealer must be located in a building, with connecting exterior walls on all sides, that has been assigned a separate mailing address by the U.S. Postal Service. The office structure must have at least 100 square feet of interior floor space exclusive of hallways, closets, or restrooms and have a minimum seven foot ceiling.
   2. (B) A dealer's office must comply with all applicable local zoning ordinances and deed restrictions.
   3. (C) A dealer's office must have electricity with adequate heating and lighting.
   4. (D) A dealer's office may not be located within a residence, apartment house, hotel, motel, or rooming house.
   5. (E) A storeroom, closet, stock room, or any other room that is not open to the public may not be designated as the dealer's office.
   6. (F) A route to a dealer's office may not pass through a food preparation area.
   7. (G) The physical address of the dealer's office must be recognized by the U.S. Postal Service or capable of receiving U.S. mail. Licenses and metal dealer plates will not be mailed to any out-of-state address.
   8. (H) A portable-type office structure may qualify as an office only if the structure meets the requirements of this section and is not a readily moveable trailer or other vehicle.

6. (6) Required office equipment for retail and wholesale dealers. At a minimum, the office must be equipped with:

   1. (A) a desk;
   2. (B) two chairs;
   3. (C) a file cabinet to hold records;
   4. (D) Internet access and printer;
   5. (E) a fax machine; and
   6. (F) a land-based, working telephone listed in the business name or assumed name under which the dealer does business.
7. (7) Number of retail dealers in one office. Not more than four retail dealers may be located in the same business structure.
8. (8) Number of wholesale dealers in one office. Not more than eight wholesale dealers may be located in the same business structure.
9. (9) Wholesale and retail dealers office sharing prohibition. Unless otherwise authorized by the Transportation Code, a retail motor vehicle dealer and a wholesale motor vehicle dealer either of which is established after September 1, 1999, may not be located in the same business structure.

10. (10) Dealer housed with other business.

    1. (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 that of the other business, a separate telephone listing, a separate telephone and fax number, and a separate sign for each business is required.
    2. (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 meeting the requirements of paragraph (13) 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.

11. (11) Display area requirements. A wholesale dealer is not required to have display space at the dealer's business premises. A retail dealer must have an area designated as display space for the dealer's inventory in accordance with this subsection.

    1. (A) The display area must be located at the dealer's business address or contiguous with the dealer's address. A non-contiguous storage lot is permissible only if there is no public access and no sales activity occurs at the storage lot. A sign stating the dealer's name and the fact the property is a storage lot is permissible.
    2. (B) A dealer's display area must be sufficient to display at least five vehicles of the type for which the general distinguishing number is issued. Those spaces must be reserved exclusively for the dealer's inventory and may not be shared with another business or a public parking area, a driveway to the office, or another dealer's display area.
    3. (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.
    4. (D) The display area must be used exclusively for the dealer's inventory.
    5. (E) If the display area is in conjunction with another vehicle dealership, the display area must be separated in such a manner that the inventories of the dealers are readily discernible from each other. The inventory of each dealer must be grouped together and not intermingled and each vehicle in the inventory of a dealer must be clearly marked to identify the dealer offering the vehicle for sale.
    6. (F) If the display area is in conjunction with another business that is not related to the sale or operation of motor vehicles, the display area for the dealer's inventory must be separated from any other parking area by a material object or barricade that is affixed to the ground in a manner that cannot be readily moved by an individual.
    7. (G) If the display area is in conjunction with another business that is not related to the sale or operation of motor vehicles, a permanent sign must be erected that designates the area as reserved for the dealer's inventory with the dealer's name and telephone number on the sign with letters at least six inches in height. When the display area is full, additional inventory vehicles may be parked outside the display area only in an area immediately adjacent to the barricaded area. The additional inventory must be on the licensed premises and not in any restricted area such as right-of-way or public sidewalks. Any additional inventory not within the barricaded area must be identified by a sign, with the dealer's name and telephone number that clearly distinguishes the inventory from any public or employee parked vehicles.
    8. (H) The display area must be adequately illuminated if the dealer is open after sundown so that vehicles for sale can be properly inspected by any prospective customer.
    9. (I) The display area may be located inside a building, subject to approval by the director.
    10. (J) If the dealer's premises includes gasoline pumps or houses another business that sells gasoline, the dealer's display area may not be part of the parking area for gasoline customers and may not interfere with access to or from the gasoline pumps. The display area may not contain a fuel fill port or any fire prevention access to the fuel tanks.
12. (12) Dealer with salvage dealer license. If a dealer also holds a salvage dealer license, each salvage vehicle that is offered for sale on the premises of the dealer's display area must be clearly and conspicuously marked with a sign that informs the potential buyers that the vehicle is a salvage vehicle. This requirement does not apply to a licensed salvage pool operator.

13. (13) Lease requirements. If the premises from which a dealer conducts business, including any display area that is not owned by the dealer, the dealer must maintain a lease that is continuous with the period for which the dealer's license will be issued. That lease agreement must be on a properly executed form containing at a minimum:

    1. (A) the names of the lessor and lessee;
    2. (B) the period of time for which the lease is valid; and
    3. (C) the street address or legal description of the property, provided that if only a legal description of the property is provided, the applicant must attach a statement that the property description in the lease agreement is the street address identified on the application.
14. (14) Dealer must display license. A dealer must display the dealer license issued by the department at all times in a manner that makes the license easily readable by the public and in a conspicuous place at each place of business for which it is issued. If the dealer's license applies to more than one location, a copy of the original license may be displayed in each supplemental location.

Source Note:The provisions of this §215.140 adopted to be effective February 11, 2010, 35 TexReg 883.