Texas Senate Bill SB1758

Texas 2009 - 81st Regular

Caption

Relating to the regulation of motor vehicle manufacturers and distributors.

Impact

The modifications delineated in SB1758 are designed to enhance the operational environment for franchised dealers. This includes provisions that prevent manufacturers from unreasonably requiring dealers to make substantial changes to their facilities or operations. The intention is to create a balanced relationship between manufacturers and dealers, ensuring that the latter can operate without undue pressure or risk of adverse actions that could stem from their dealership agreements. Such changes are expected to positively impact the viability of local dealerships and protect their investments.

Summary

Senate Bill 1758 addresses the regulation of motor vehicle manufacturers and distributors in Texas. The bill aims to amend several sections of the Occupations Code to establish clearer prohibitions on the practices of manufacturers and distributors concerning their franchised dealers. It elaborates on what constitutes 'net cost' for vehicles in dealerships and enforces fair compliance standards, ensuring that dealers are not compelled to meet unreasonable sales or service standards imposed by manufacturers.

Contention

Some notable points of contention surrounding SB1758 include the extent to which the bill limits the manufacturers' ability to enforce strict control over their dealers. Critics may argue that while the bill promotes fairness, it could also hinder manufacturers' ability to manage their brand standards effectively. The balance struck by the bill aims to reflect the needs of both parties, allowing for competitive fairness while addressing the economic conditions affecting dealers. Additionally, provisions addressing exports of vehicles add another layer of complexity regarding the operational limits placed on dealers.