Texas 2025 - 89th Regular

Texas House Bill HB3859

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, over-the-air, and preparation and delivery work.

Impact

If established, HB 3859 will influence the existing regulatory framework governing motor vehicle dealers. It mandates manufacturers and distributors to compensate their dealers fairly, based on established formulas and without imposing additional charges that could undermine dealer profitability. By requiring manufacturers to follow these compensation guidelines strictly, it seeks to improve financial outcomes for dealers, particularly in warranty and recall work scenarios, thereby fostering a more stable economic environment for motor vehicle sales and service.

Summary

House Bill 3859 addresses the relationship between motor vehicle franchised dealers and manufacturers or distributors. It outlines specific requirements for how dealers should be compensated for warranty and recall work, including over-the-air services. The bill seeks to provide clarity in the compensation structure, ensuring that dealers receive fair remuneration for the services they provide under manufacturer warranties and recalls. This initiative seems aimed at balancing the financial interests of both dealers and manufacturers while enhancing the overall customer service experience in the automotive industry.

Contention

While the bill is primarily aimed at protecting dealers' interests, it could be met with resistance from some manufacturers who may view it as a limitation on their operational flexibility. Critics might argue that the bill could impose higher costs on manufacturers, potentially leading to increased prices for consumers or reduced incentives for dealers to offer additional services. The implementation of this bill may thus result in a reconfiguration of the dealer-manufacturer relationship, necessitating negotiations and compliance adjustments to align with the new requirements.

Texas Constitutional Statutes Affected

Occupations Code

  • Chapter 2301. Sale Or Lease Of Motor Vehicles
    • Section: New Section

Companion Bills

TX SB1917

Identical Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, over-the-air, and preparation and delivery work.

Previously Filed As

TX HB4078

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, and preparation and delivery work.

TX SB2099

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, and preparation and delivery work.

TX HB4810

Relating to transactions involving dealer agreements under the Fair Practices of Equipment Manufacturers, Distributors, Wholesalers, and Dealers Act

TX HB3861

Relating to the titling and registration of motor vehicles by motor vehicle dealers.

TX SB2567

Relating to the issuance of temporary tags and license plates by a motor vehicle dealer.

TX SB1083

Relating to insurer restrictions and duties regarding repair of a motor vehicle covered under an insurance policy.

TX HB3476

Relating to insurer restrictions and duties regarding repair of a motor vehicle covered under an insurance policy.

TX HB1321

Relating to certain insurance practices with respect to repair of motor vehicles.

TX HB5269

Relating to motor vehicle titles.

TX HB3599

Relating to an exemption from certain motor fuel taxes for, and registration fees for motor vehicles owned by, certain nonprofit food banks.

Similar Bills

TX SB1917

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, over-the-air, and preparation and delivery work.

TX HB4078

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, and preparation and delivery work.

TX SB2099

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, and preparation and delivery work.

CA AB473

Motor vehicle manufacturers, distributors, and dealers.

TX HB1960

Relating to the regulation of boat manufacturers, distributors, and dealers; providing a civil penalty.

TX SB1315

Relating to the regulation of boat manufacturers, distributors, and dealers; providing a civil penalty.

RI S0885

Extends certain protocols applicable to motor vehicle manufacturers to their distributors and factory branches, as well as updates warranty reimbursement and recall obligation policies.

RI H5590

Extends certain protocols applicable to motor vehicle manufacturers to their distributors and factory branches, as well as updates warranty reimbursement and recall obligation policies.