Effective September 1, 2021, Texas House Bill 3533, will increase the surety bond required for motor vehicle dealers in the state from $25,000 to $50,000.
The bill explains the Texas Department of Motor Vehicles may not issue or renew a motor vehicle dealer general distinguishing number (GDN) or a wholesale motor vehicle auction general distinguishing number unless the applicant provides to the department, among other materials, a properly executed surety bond in the amount of $50,000 (previously $25,000).
The bill additionally states that a dealer should post notice of the surety bond and the procedure by which a claim may be made against it, much in the same manner as the dealer’s general distinguishing number is posted.
This requirement applies only to applications for the issuance or renewal of a motor vehicle dealer general distinguishing number (or a wholesale motor vehicle auction general distinguishing number) expiring after the September 1, 2021 effective date.
What should existing SuretyBonds.com customers expect?
Texas motor Vehicle Dealers with active bonds on file with the Texas Department of Motor Vehicles will need to update their current bond to the $50,000 amount. The SuretyBonds.com Customer Care Team will reach out to our existing clients to help them process this change as soon as possible. To expedite increase document issuance processing, existing SuretyBonds.com clients can email [email protected].
If you’re a new motor vehicle dealer in Texas or are an existing dealer looking for a new surety provider, you can apply for a new Texas Motor Vehicle Dealer Bond online 24/7 or call 1 (800) 308-4358 to speak with a surety expert about your bonding needs.