1. (a) Revocation/Denial. The Board may deny, revoke, or suspend a dealer's license (general distinguishing number) or assess civil penalties against any person if that person:

   1. (1) fails to maintain a good and sufficient bond in the amount of $25,000 if required;
   2. (2) fails to maintain an established and permanent place of business conforming to the regulations pertaining to office, sign, and display space requirements;
   3. (3) refuses to permit or fails to comply with a request by a representative of the department to examine the sales records required to be kept under §215.144 of this subchapter (relating to Record of Sales and Inventory) and ownership papers for vehicles owned by that dealer or under that dealer's control, and evidence of ownership or lease rights on the property upon which the dealer's business is located, during posted working hours or through a request made by the department pursuant to these rules;
   4. (4) holds a wholesale dealer license and, without notifying the division and meeting the vehicle display space requirements of §215.140 of this subchapter, is found to be selling or offering to sell a vehicle to someone other than a licensed dealer, unless authorized by statute;
   5. (5) sells or offers to sell a type of vehicle that the person is not licensed to sell;
   6. (6) fails to notify the division of a change of physical or mailing address and/or telephone number within 10 days after such change;
   7. (7) fails to notify the division of a dealer's name change or ownership within 10 days after such change;
   8. (8) except as provided by law, issues more than one buyer's temporary tag for the purpose of extending the purchaser's operating privileges for more than 60 days;
   9. (9) fails to remove license plates as required by law from a vehicle that is displayed for sale;
   10. (10) misuses a metal dealer license plate or a temporary tag;
   11. (11) fails to display dealer license plates or tags in a manner conforming to the regulations pertaining to the display of such plates and tags;
   12. (12) fails to satisfy the notification requirements of §215.144 of this subchapter;
   13. (13) holds open titles or fails to take assignment of all certificates of title, manufacturer's certificates, or other basic evidence of ownership for vehicles acquired by the dealer or fails to assign the certificate of title, manufacturer's certificate, or other basic evidence of ownership for vehicles sold (All certificates of title, manufacturer's certificates, or other basic evidence of ownership for vehicles owned by a dealer must be properly executed showing transfer of ownership into the name of the dealer.);
   14. (14) fails to remain regularly and actively engaged in the business of buying, selling, or exchanging vehicles of the type for which the general distinguishing number is issued;
   15. (15) violates any of the provisions the Codes, or any rule or regulation of the department, including advertising rules set out in Subchapter H of this chapter (relating to Advertising);
   16. (16) has not assigned at least five vehicles in the prior 12 months, provided the dealer has been licensed more than 12 months;
   17. (17) files a false or forged title or tax document, including sales tax statement or application for certified copy of a title;
   18. (18) uses or allows use of that dealer's license or location for the purpose of avoiding the provisions of the dealer law or other laws;
   19. (19) makes a material misrepresentation in any application or other information filed with the division;
   20. (20) fails to remit payment for civil penalties assessed by the Board;
   21. (21) sells new motor vehicles without a franchised dealer's license issued by the division;
   22. (22) utilizes a temporary tag that fails to meet specifications as cited in §215.153 of this subchapter (relating to Specifications for All Temporary Tags); or
   23. (23) violates any state or federal law or regulation relating to the sale of a motor vehicle.
2. (b) Civil penalties. The Board may assess a civil penalty of not less than $50 nor more than $1,000 against a person that is found to have engaged in conduct described in subsection (a) of this section, and in determining the amount of any such penalty may consider the relevant circumstances, including but not limited to the factors enumerated in Occupations Code, §2301.801(b).
3. (c) Warning letter. In lieu of imposing sanctions under subsection (a) or (b) of this section, the division may issue a warning letter to a person notifying that person of the nature of the violation, and specifying the date by which corrective action is to be completed and full compliance is to be met; provided, however, that the Board may not issue a warning letter in more than three subsequent violations of the same or similar nature by that person in the same calendar year.

Source Note:The provisions of this §215.141 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective August 2, 2012, 37 TexReg 5637.