No dealer license needed for converted vehicles and their own trailers.
The bill lets a business with a state converter's license sell directly to retail buyers without getting a dealer license or general distinguishing number. It covers new motor vehicles the business converted, when the manufacturer handed over the chassis and the statement of origin, and trailers or semitrailers the business built itself. Converters and trailer makers could sell straight to customers instead of going through a licensed dealer, starting immediately with a two-thirds vote or on September 1, 2025.
Labels
Labels: GOT HALFWAY. Passed the Senate on May 7, 2025. Died in the House: voted out of the Transportation committee 9-2, no floor vote.
relating to certain retail sales of motor vehicles, trailers, and
semitrailers by a holder of a converter's license.
WHAT IT DOES
No dealer license needed for converted vehicles and their own trailers.
The bill lets a business with a state converter's license sell directly to retail buyers without getting a dealer license or general distinguishing number. It covers new motor vehicles the business converted, when the manufacturer handed over the chassis and the statement of origin, and trailers or semitrailers the business built itself. Converters and trailer makers could sell straight to customers instead of going through a licensed dealer, starting immediately with a two-thirds vote or on September 1, 2025.
CHARGES
[ ] NONE FOUND
TOTAL
No significant fiscal implication to the State is anticipated.
Names were not printed. No individual positions are inferred.
Sources
Senator Hughes moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSB 1113 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 31, Nays 0. The bill was read third time and was passed by the following vote: Yeas 31, Nays 0.
Published stock of positions for this vote, except where marked derived.
Yea: 31 (published)
Nay: 0 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed
Senate journal. Source snapshot 2026-10-19, Central time.
Names were not printed. No individual positions are inferred.
Sources
Senator Hughes moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSB 1113 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 31, Nays 0.
Published stock of positions for this vote, except where marked derived.
Yea: 31 (published)
Nay: 0 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed
Senate journal. Source snapshot 2026-10-19, Central time.
89R8194 BEE-D
By: Hughes
S.B. No. 1113
A BILL TO BE ENTITLED
AN ACT
relating to certain retail sales of motor vehicles, trailers, and
semitrailers by a holder of a converter's license.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2301.476, Occupations Code, is amended
by adding Subsection (h-2) to read as follows:
(h-2) Notwithstanding any other law, a person who holds a
converter's license is not required to hold any additional license
or general distinguishing number to sell to a retail purchaser:
(1) a new motor vehicle the person converted, if the
vehicle manufacturer transferred the chassis and the
manufacturer's statement of origin to the person; or
(2) a trailer or semitrailer the person manufactured.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
Monitoring 