83R7508 BEF-F
By: Kuempel H.B. No. 1504
A BILL TO BE ENTITLED
AN ACT
relating to the selection by motor vehicle dealers of materials and
vendors for motor vehicle dealership upgrades and improvements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter J, Chapter 2301, Occupations Code, is
amended by adding Section 2301.483 to read as follows:
Sec. 2301.483. SELECTION BY DEALER OF VENDOR OR MATERIALS
FOR DEALERSHIP IMPROVEMENT. (a) Except as provided by Subsection
(b), a manufacturer or distributor may not:
(1) require a dealer to purchase or use specific
materials or to purchase goods or services from a specific vendor
when making an upgrade or improvement to the dealer's dealership;
or
(2) directly or indirectly take an adverse financial
or other action against a dealer who chooses materials or a vendor
as provided by this section.
(b) If a manufacturer or distributor provides money
directly or indirectly to a dealer to compensate the dealer for a
specific upgrade or improvement, the dealer may select the
materials and vendors for upgrade or improvement but shall select
materials and vendors that are of like kind and quality to those
specified by the manufacturer or distributor, if any.
SECTION 2. The changes in law made by this Act apply to a
manufacturer, distributor, and dealer regardless of the date the
person's license is issued or renewed under Chapter 2301,
Occupations Code, and regardless of the date a franchise agreement
is entered into or renewed.
SECTION 3. This Act takes effect September 1, 2013.