Texas § OC.2301.652 - DENIAL OF LICENSE APPLICATION
Full text of Texas The Texas Constitution § OC.2301.652 — DENIAL OF LICENSE APPLICATION, with citation guidance and answers to common questions.
§ OC.2301.652. DENIAL OF LICENSE APPLICATION
DENIAL OF LICENSE APPLICATION: DEALERSHIP. (a) The board may deny an application for a license to establish a dealership if, following a protest, the applicant fails to establish good cause for establishing the dealership. In determining good cause, the board shall consider: (1) whether the manufacturer or distributor of the same line-make of new motor vehicle is being adequately represented as to sales and service; (2) whether the protesting franchised dealer representing the same line-make of new motor vehicle is in substantial compliance with the dealer's franchise, to the extent that the franchise is not in conflict with this chapter; (3) the desirability of a competitive marketplace; (4) any harm to the protesting franchised dealer; (5) the public interest; (6) any harm to the applicant; and (7) current and reasonably foreseeable projections of economic conditions, financial expectations, and the market for new motor vehicles in the relevant market area. (b) Except as provided by Subsection (c) and Sections 2301.6521 and 2301.6522 , a person has standing under this section to protest an application to establish or relocate a dealership if the person filing the protest is a franchised dealer of the same line-make whose dealership is located: (1) in the county in which the proposed dealership is to be located; or (2) within a 15-mile radius of the proposed dealership. (c) A franchised dealer may not protest an application to relocate a dealership under this section if the proposed relocation site is not: (1) more than two miles from the site where the dealership is currently located; or (2) closer to the franchised dealer than the site from which the dealership is being relocated. Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003. Amended by: Acts 2009, 81st Leg., R.S., Ch. 684 (H.B. 2640 ), Sec. 9, eff. September 1, 2009. Acts 2011, 82nd Leg., R.S., Ch. 137 (S.B. 529 ), Sec. 13, eff. September 1, 2011.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § OC.2301.652
What does The Texas Constitution § OC.2301.652 cover?
Section OC.2301.652 ("DENIAL OF LICENSE APPLICATION") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § OC.2301.652?
A common citation format is "The Texas Constitution § OC.2301.652" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § OC.2301.652 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.