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State of Texas
Texas Attorney General's Office
Opinion Notification
Tuesday, August 01, 2017

The Texas Attorney General's Office on Monday issued a legal opinion regarding whether wholly owning a motor vehicle manufacturer results in affiliation with that manufacturer for purposes of a subsection of the Occupations Code.

According to the Attorney General's Office, "for purposes of section 2301.476 of the Occupations Code, a manufacturer includes an entity affiliated with a manufacturer."

"The common understanding of the term affiliate includes concepts of both ownership and control," stated the opinion. "Thus, a court is likely to conclude that a company that relinquishes control of a manufacturer but maintains full ownership of that manufacturer remains affiliated with the manufacturer for purposes of section 2301.476." Opinion

The opinion was requested by Raymond Palacios, Jr., chair of the Texas Department of Motor Vehicles Board. Request

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