Texas Senate Bill SB1659

Texas 2013 - 83rd Regular

Caption

Relating to manufacturers and distributors of only all electric-powered or all battery-powered motor vehicles.

Impact

The proposed changes in SB1659 would have significant implications for state laws regarding motor vehicle sales. By allowing qualifying manufacturers or distributors to bypass certain franchise requirements, the bill creates a more favorable environment for electric and battery-powered vehicle sales. This can enhance the state's capacity to support and promote electric vehicle adoption and infrastructure, aligning with broader environmental objectives and market trends. The act reflects a recognition of the evolving automobile market and Texas's interest in fostering industries related to electrification and sustainability.

Summary

SB1659 is a legislative proposal that seeks to amend the Occupations Code in Texas, specifically focusing on regulations pertaining to manufacturers and distributors of all electric-powered or all battery-powered motor vehicles. The bill aims to allow certain manufacturers and distributors that have been in operation and that owned a new motor vehicle dealership before March 1, 2013, to own or operate a dealership without needing the typical franchise prerequisites. This change seeks to facilitate the growth and operation of electric vehicle dealerships across the state, promoting a shift towards greener automotive options.

Sentiment

Discussions around SB1659 reveal a generally positive sentiment among proponents who see the bill as a necessary step towards modernizing Texas's automobile industry. They argue that easing the restrictions for manufacturers of electric vehicles is crucial to improving market competitiveness and addressing the growing demand for environmentally friendly transportation options. However, there may also be dissenting views regarding the implications for traditional dealership frameworks and the potential displacement effects on franchised dealers, which could lead to concerns about equitable market practices.

Contention

While the overall direction of SB1659 appears constructive, it does raise questions about the balance of power between traditional automobile dealerships and new entrants focused on electric vehicles. Critics may argue that the bill could create an uneven playing field that favors specific businesses at the expense of franchised dealers. The conversation around these changes encapsulates broader tensions within the automotive industry concerning adaptation to emerging technologies, state regulation, and potential market disruption.