Tex. Codes » Occupations Code · TITLE 14. REGULATION OF MOTOR VEHICLES AND TRANSPORTATION · SUBTITLE A. REGULATIONS RELATED TO MOTOR VEHICLES · CHAPTER 2301. SALE OR LEASE OF MOTOR VEHICLES
Texas Codes

Tex. Occ. Code § 2301.251 (2026)

License Required: Generally

✓ current as of May 2026
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Sec. 2301.251. LICENSE REQUIRED: GENERALLY. (a) Unless a person holds a license issued under this chapter authorizing the activity, the person may not:

(1) engage in business as, serve in the capacity of, or act as a dealer, manufacturer, distributor, converter, vehicle lessor, or vehicle lease facilitator in this state; or

(2) perform or offer to perform repair services on a motor vehicle under a franchise and a motor vehicle manufacturer's warranty, regardless of whether the person sells or offers to sell motor vehicles at the same location.

(b) A franchised dealer must have both a franchised motor vehicle dealer's general distinguishing number issued under Chapter 503, Transportation Code, and a license issued under this chapter.

(c) A manufacturer or distributor that directly or indirectly reimburses another person to perform warranty repair services on a vehicle is engaged in business in this state regardless of whether the manufacturer sells or offers for sale new motor vehicles in this state.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.

Amended by:

Acts 2019, 86th Leg., R.S., Ch. 594 (S.B. 604), Sec. 2.01, eff. September 1, 2019.

Notes of Decisions
Cited in 6 cases, 2004–2008 · leading case: Denson v. Dallas Cnty. Credit Union, 262 S.W.3d 846 (Tex. App. 2008).
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Denson v. Dallas Cnty. Credit Union, 262 S.W.3d 846 (Tex. App. 2008). “021 ; Tex. Occ.Code Ann. § 2301.251(a), (b). Thus, because the *854 transportation code specifically disproves of such activities without a license thereby making them void, we find appellants’ reliance on Mann unpersuasive.”
Int'l Truck & Engine Corp. v. Bray, 372 F.3d 717 (5th Cir. 2004). “Compare Tex. Occ.Code Ann. §§ 2301.251, 2301.451-.”
Buddy Gregg Motor Homes, Inc.//Cross-Appellant, Liberty Coach, Inc. v. Motor Veh. Bd. of the Texas Dep't of Transp. & Liberty Coach, Inc.//Cross-Appellee, Buddy Gregg Motor Homes, Inc. (Tex. App. 2005). “Tex. Occ. Code Ann. § 2301.251 (a). Once the parties have entered into a franchise agreement, each party owes a duty of good faith and fair dealing to the other party, which is actionable in tort.”
Buddy Gregg Motor Homes, Inc.//Cross-Appellant, Liberty Coach, Inc. v. Motor Veh. Bd. of the Texas Dep't of Transp. & Liberty Coach, Inc.//Cross-Appellee, Buddy Gregg Motor Homes, Inc. (Tex. App. 2005). “Tex. Occ. Code Ann. § 2301.251 (a). Once the parties have entered into a franchise agreement, each party owes a duty of good faith and fair dealing to the other party, which is actionable in tort.”
Motor Veh. Bd. & Motor Veh. Div. of the Texas Dep't of Transp. v. Prevost Car (US) Inc. (Tex. App. 2006). “2002) (now codified at Tex. Occ. Code Ann. §§ 2301.251 (a)(1), .”
Motor Veh. Bd. & Motor Veh. Div. of the Texas Dep't of Transp. v. Prevost Car (US) Inc. (Tex. App. 2006). “2002) (now codified at Tex. Occ. Code Ann. §§ 2301.251 (a)(1), .”
— Tex. Occ. Code § 2301.251(a) — 1 case
Denson v. Dallas Cnty. Credit Union, 262 S.W.3d 846 (Tex. App. 2008). “021 ; Tex. Occ.Code Ann. § 2301.251(a), (b). Thus, because the *854 transportation code specifically disproves of such activities without a license thereby making them void, we find appellants’ reliance on Mann unpersuasive.”
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