Texas House Bill HB3351

Texas 2013 - 83rd Regular

Caption

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

Impact

The implications of HB3351 are significant for both the automotive market and consumers in Texas. By allowing electric vehicle manufacturers to bypass traditional franchised dealership models, the bill aims to increase competition and potentially lower the costs of electric vehicles for consumers. This move is expected to help promote the adoption of electric cars, and aligns with broader environmental goals and policies aimed at reducing carbon emissions and encouraging greener transportation options.

Summary

House Bill 3351 proposes changes to how electric vehicle manufacturers can engage in the automobile market by allowing them to own and operate their own dealerships. Specifically, the bill amends Section 2301.252 of the Occupations Code, lifting restrictions that prevent manufacturers of only battery-powered or electric vehicles from participating directly in the sale of their vehicles to consumers. This measure is positioned to facilitate greater access to electric vehicles in Texas and recognizes the shifting landscape of the automotive industry, where direct sales from manufacturers are becoming more common.

Contention

However, the bill has raised contention among traditional dealerships and related stakeholders who argue that such a change undermines the established dealership framework that has been in place for years. Franchised dealers often express concern that allowing manufacturers to sell directly to consumers might lead to a conflict of interest and could put them at a financial disadvantage. Additionally, there are worries that this legislation may create an uneven playing field that favors larger, established manufacturers at the expense of small or independent dealerships in the state.