Texas House Bill HB3505

Texas 2017 - 85th Regular

Caption

Relating to the operation of a motor vehicle dealership by certain manufacturers or distributors.

Impact

The implications of HB3505 stretch across the regulatory landscape for motor vehicle dealers, particularly affecting how manufacturers can engage with dealerships. By streamlining the licensing process for certain manufacturers or distributors, the bill aims to increase operational flexibility for those who have previously established access to the market. Importantly, the legislation mandates that these manufacturers provide equal access to necessary support resources like parts, training, and repair information to dealers, which could enhance competition and service quality in the industry.

Summary

House Bill 3505 pertains to the operation of motor vehicle dealerships specifically as it relates to certain manufacturers or distributors. The bill allows individuals who held a manufacturer's license as of January 1, 2017, to hold a combination of a manufacturer's license and up to nine dealer's licenses. This provision enables these individuals to operate both as manufacturers and dealers for new motor vehicles under specific conditions, such as manufacturing or distributing engines for vehicles primarily used for transport over public highways with a gross vehicle weight exceeding 16,000 pounds.

Contention

While the bill may be positioned as a modernization of dealership operations, it could also raise concerns among traditional dealerships about market equity. Critics may argue that allowing manufacturers to act as both dealer and manufacturer could lead to an uneven playing field, where established manufacturers could potentially leverage their positions to undercut independent dealers. The balance between fostering competition and protecting local dealership interests may become a contentious issue as stakeholders assess the broader ramifications of this bill.