Texas House Bill HB3828

Texas 2015 - 84th Regular

Caption

Relating to the ownership or operation of a motor vehicle dealership by a manufacturer or distributor of motor vehicles powered only by electricity or battery.

Impact

The bill is expected to impact state regulations surrounding automobile dealerships by introducing greater flexibility for electric vehicle manufacturers. By allowing manufacturers to operate their own dealerships, it aims to streamline the sales process for these cars, which may enhance competition and consumer choice in the automotive market. Additionally, the bill attempts to address the demand for electric vehicles amid increasing interest in sustainable transportation options.

Summary

House Bill 3828 proposes amendments to the Occupations Code to regulate the ownership and operation of a motor vehicle dealership specifically by manufacturers or distributors of electric or battery-powered vehicles. This bill permits such manufacturers and distributors to directly own and operate their dealerships under certain conditions. Notably, they must limit their sales to a maximum of 5,000 electric or battery-powered vehicles annually within Texas. This regulatory shift is designed to adapt to the growing market for electric vehicles and enhance consumer access to these types of vehicles.

Contention

However, the bill may lead to notable contention in the automotive industry regarding market fairness and competitive dynamics. Traditional dealerships might raise concerns that such provisions favor manufacturers disproportionately, potentially upsetting longstanding dealership frameworks that have been in place. Legislative discussions surrounding the bill will likely focus on balancing the interests of new electric vehicle companies with those of established dealers who may feel threatened by direct competition from manufacturers.