Pub. 62 2021-2022 Issue 1

8 The Beginning The Texas statute known as the Texas Motor Vehicle Commission Code, aka TMVC Code, aka Chapter 2301, Occupations Code, turned 50 years old on April 7, 2021. 1 A look-back from where the 62nd Legislature started to where the statute is today is integral to understanding the motor vehicle industry and its governance. The following discussion includes highlights of the agency’s and statute’s fiftieth anniversary. In 1971, W.T. “Bill” Moore from Bryan, dubbed by the media as the “Bull of the Brazos,” authored S.B. 140, and L. Dean Cobb from Dumas sponsored the bill known as the Texas Motor Vehicle Commission Code in the House. It first passed the Senate on Feb. 25 with 29 Yeas and 0 Nays. The House next passed the bill, with amendments, on March 25th, with 134 Yeas and 5 Nays. Five days later, on March 30th, the Senate concurred with the House amendments, with 31 Yeas and 0 Nays. The 62nd Legislature determined “that authority is urgently required to regulate and license” both new motor vehicle manufacturers and distributors and their representatives as well as franchised new motor vehicle dealers, and so the rule requiring bills to be read on three several days in each House was suspended. The new Act took effect on its passage – April 7, 1971. Policy and Purpose 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. A state’s interest in the relationship between the two signatories to a franchise agreement and their respective responsibilities is demonstrated by the passage of statutes governing their actions in all 50 states. Texas determined that a manufacturer produces the motor vehicle, and the franchised dealer buys, sells, services, and repairs the motor vehicle. These separate and distinct roles are upheld in the statutory framework with enforcement granted by the legislature to the agency and its board to serve the public, the consumer, the agency’s licensees, and this State. In 1995, independent motor vehicle dealers were added to the code. The policy and purpose provision was amended so that the distribution and sale of new and used motor vehicles are now enforceable by the agency. 2 Commission & Board Members Throughout its tenure, the agency has been: a stand- alone agency, an independent entity within the Texas By Tom Blanton & Karen Phillips The Texas Motor Vehicle Code Turns 50  TEXAS MOTOR VEHICLE CODE — CONTINUED ON PAGE 10