Relating to certain retail sales of motor vehicles, trailers, and semitrailers by a holder of a converter's license.
Summary
SB 1113 would change Texas law governing certain sales of motor vehicles, trailers, and semitrailers by holders of a converter’s license. The bill creates an exception to existing licensing requirements by providing that a person with a converter’s license and a physical presence in Texas does not need any additional dealer license or general distinguishing number to sell certain vehicles directly to retail purchasers. This applies to new motor vehicles the converter assembled or converted, if the manufacturer transferred the chassis and manufacturer’s statement of origin to the converter, and to trailers or semitrailers the converter manufactured.
The bill also specifies that a converter making these retail sales is treated as a dealer for purposes of the responsibilities and obligations owed to the retail purchaser under the Occupations Code and Transportation Code. In effect, the measure allows certain converters to sell directly while still being subject to the consumer-facing duties that apply to dealers for those vehicle types.
Impact
SB 1113 amends Section 2301.476 of the Occupations Code and affects related dealer and vehicle-title provisions in the Transportation Code. It narrows the need for separate dealer licensing for qualifying converter-license holders, while extending dealer-like obligations to those sellers when they make retail sales. The practical impact is on converter businesses, vehicle manufacturers that transfer chassis and MSOs, and retail buyers of converted vehicles, trailers, and semitrailers.
Sentiment
The available legislative history suggests the bill moved without recorded opposition in the provided vote data, and there are no committee transcript excerpts showing debate. Its progress to a House committee report sent to Calendars indicates the measure had at least procedural support. Overall, the sentiment appears neutral to favorable, with the bill advancing through the process without visible controversy in the supplied materials.
Contention
The main policy issue is whether holders of a converter’s license should be allowed to bypass additional dealer licensing requirements when selling directly to consumers. Supporters would likely view the bill as reducing duplicative regulation and clarifying the authority of converters to sell products they have manufactured or converted. Potential concerns would center on consumer protection, dealer licensing standards, and whether direct retail sales by converters could create uneven treatment compared with traditional motor vehicle dealers; however, no specific objections are reflected in the provided transcripts or votes.
To Amend The Law Concerning The Collection Of Sales And Use Tax On Motor Vehicles, Trailers, Semitrailers, And Motorboats, As Affirmed By Referred Act 19 Of 1958; And To Subject Certain Used Motorboats To A Special Rate Of Tax.
Relating to fees for the issuance of certain specialty license plates and an exemption from vehicle registration for certain trailers, semitrailers, tractors, and implements of husbandry.
To Require The Collection Of Sales Tax At The Point Of Sale For The Sale Of A New Or Used Motor Vehicle, Trailer, Or Semitrailer By A Dealer; And To Amend Law Affirmed By Referred Act 19 Of 1958.
Relating to the authority of the Texas Department of Motor Vehicles to require that a vehicle, trailer, or semitrailer have a vehicle identification number inspection.
Providing for the use of triple trailers on highways, increasing the allowable gross weight for such vehicle combinations and allowing the use of trailers with dealer license plates.
Exempts purchases of motor vehicles by certain veterans and their spouses from sales and use taxes and the vehicle registration and license tax. (7/1/25) (RE DECREASE GF RV See Note)