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Relating to the requirement that a motor vehicle dealer obtain a
general distinguishing number for a consignment location.
No fiscal implication to the State is anticipated.
A general distinguishing number (GDN) is the basic dealer license that allows a person to buy, sell or exchange the type of used vehicle for which the GDN is issued.
SB 2052 would expand to any motor vehicle dealer the requirement that a dealer obtain a GDN for a consignment location, unless the consignment location is a wholesale motor vehicle auction. Currently, this requirement only applies to a dealer who consigns for sale more than five vehicles in a year from a location other then the location for which the dealer holds a GDN.
Texas Action opposed SB 2052 because it infringes upon principles of free markets, individual liberty, and limited government. This bill would expand regulations on car dealers so that even if they consign a few vehicles in a different location, they would have to obtain an additional license.