Texas House Bill HB2293

Texas 2011 - 82nd Regular

• Out of House Committee: 4/11/11
• Introduced: 3/4/11
• Refer: 3/10/11
• Report Pass: 4/5/11

Caption

Relating to the regulation of motor vehicle dealers, manufacturers, distributors, and representatives.

Impact

The implementation of HB 2293 would significantly alter the current framework governing motor vehicle franchising in Texas. By restraining manufacturers from unreasonably requiring dealers to relocate or renovate their facilities, the bill aims to stabilize the operational landscape for franchised dealers. Additionally, it provides guidelines for the treatment of properties used in dealership agreements, enhancing the rights of dealers to utilize their premises without excessive control from manufacturers. These changes are likely to foster a more balanced dynamic in dealer-manufacturer relationships.

Summary

House Bill 2293 aims to regulate the relationships between motor vehicle dealers, manufacturers, distributors, and representatives. The bill introduces several amendments to the Occupations Code to limit unreasonable practices by manufacturers and distributors regarding their franchised dealers. Specifically, it addresses issues related to property use agreements and the rights of dealers in situations of relocation or termination of franchise relationships. The proposed legislation seeks to provide more equitable treatment and protect dealers from potentially exploitative practices by manufacturers and distributors.

Contention

While the bill is aimed at providing protections for franchised dealers, concerns have been raised about the implications for manufacturers and distributors regarding their ability to enforce standards and regulations. Advocates for the bill argue that it promotes fairness and prevents discrimination among dealers, whereas opponents may view it as a restriction on their operational authority. The debate surrounding this legislation will likely revolve around balancing the rights of dealers with the business interests of manufacturers and the potential for unintended consequences in the automotive market.