Pub. 62 2021-2022 Issue 1

10 Department of Transportation, a division within the department, and again, a stand-alone agency. And, the board has gone from six to nine members with member alterations along the way. As originally constructed, the Texas Motor Vehicle Commission was a six-member commission appointed by the Governor with the advice and consent of the Senate. Two members were public, and four of the six members were franchised dealers with a minimum of 10 years’ experience. No two dealers franchised by the same manufacturer or distributor were eligible for appointment. 3 The commission grew to nine members in 1979, with five dealer members and four public members. In 1987, the commission returned to six members; however, the members 4 were now all public members. 5 The agency became a part of the Texas Department of Transportation in 1997, and the board, although within the Texas Department of Transportation, was an independent entity within the department to conduct policy and regulatory functions and duties, including carrying out the functions and duties of the Act. In that same session, the legislature increased the board to nine members: two dealers, at least one franchised dealer, and one licensed manufacturer or distributor representative. 6 A repeal of the board occurred in the 79th Legislature, and the Texas Department of Motor Vehicles became a division within the Texas Department of Transportation in 2005. 7 The current agency, the Texas Department of Motor Vehicles, with its nine-member board, was organized by the 81st Legislature, R.S. A transfer of all powers, duties, and obligations occurred from the Texas Department of Transportation, effective Sept. 1, 2009, with turnover to the board of the Texas Department of Motor Vehicles on Nov. 1, 2009. 8 The legislature also conferred motor vehicle titles and registration and motor carrier responsibilities during the transfer to the newly formed Texas Department of Motor Vehicles. The board is now comprised of nine members: three must hold a dealer’s license, of whom two must be franchised dealers of different classes, and one must be an independent dealer; one member must be a representative of a manufacturer or distributor; one member must be a tax assessor-collector; one member is a representative of a municipality or county law enforcement agency; one member must represent the motor carrier industry; and, the remaining members are public. 9 Although the agency’s responsibilities are many, its charge encompasses the motor vehicle industry and ensures a sound system of distributing and selling motor vehicles for the public, the consumer, the licensees, and the State. Warranty Issues & the “Lemon Law” The legislature’s concern for a buyer’s motor vehicle warranty and repairs and warranty compliance was as important in 1971 as it is today. The 62nd Legislature gave a new motor vehicle retail buyer the statutory authority to formally complain about a defect covered by their motor vehicle’s warranty. The buyer was required to send a certified letter to the dealer specifying the defect covered by the warranty, and the dealer had 30 days to correct the defect. If the defect was not corrected, the owner could file another complaint by sending a second certified letter to the dealer with copies to the applicable manufacturer or distributor and the commission. The commission could then hold a hearing on the unsatisfied complaint to determine if a violation occurred. 10 Although amended, this provision remains intact for a warranty complaint ( See §2301.204, Texas Occupations Code). The legislature determined to provide an additional remedy for a new motor vehicle purchaser by passing the “Lemon Law” in 1983. This new legislation provided that a new motor vehicle must conform to the vehicle’s express warranty. If repairs cannot conform the vehicle to the warranty, then a replacement vehicle or a refund could be ordered by the board to the consumer from the warrantor. 11 Since 1983, the agency reports that there have been over 19,000 “Lemon Law” complaints filed and the repurchase or replacement value to consumers is over $121 million. In FY 2020, 14 vehicles were ordered repurchased or replaced pursuant to a hearing, with a total value of $683,999. 12 The 62nd Legislature’s rationale for the Texas Motor Vehicle Commission Code remains much the same today as when it was first enacted, i.e., the distribution and sale of new motor vehicles vitally affects the state’s general economy, as well as the public’s interest and welfare. Thus the state’s regulation and licensing of the industry is necessary.  TEXAS MOTOR VEHICLE CODE — CONTINUED FROM PAGE 8