House Bill 3533 was passed during the regular 87th legislative session increasing the required surety bond amount for most dealer general distinguishing number (GDN) holders. Effective September 1, 2021, the security requirement to issue or renew a GDN requires a Motor Vehicle Dealer Surety Bond in the amount of $50,000. Previously, the required surety bond amount was $25,000.
The surety bond requirement applies to all GDN license types except for Trailer/Semitrailer and Non-Motorized Travel Trailer. The bond requirement does not apply to Franchised dealers issued a GDN license associated to a Franchised dealer license. Applicants and dealers applying for a new GDN, or renewing a current GDN, prior to September 1, may still submit a Motor Vehicle Dealer Surety Bond in the amount of $25,000 to meet the security requirement. All applicants and dealers applying for a new GDN, or renewing a current GDN, on or after September 1 are required to submit a Motor Vehicle Dealer Surety Bond in the amount of $50,000.
In addition to the increased security bond, the new law requires dealers to post notice of the surety bond and the procedure by which a claimant may recover from the bond. This posting should be adjacent to, and in the same manner as, the dealer’s posted GDN.
Please refer to Texas Administrative Code §215.137 for a complete list of surety bond requirements and Transportation Code §503.033 for a complete list of security requirements.
Monique Johnston, Director
Source: Dealers and Manufacturers
HB3533 Bond Notice Final