Texas Senate Bill SB2093

Texas 2017 - 85th Regular

Caption

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

Impact

The amendments proposed in SB2093 will impact laws relating to vehicle sales, dealer licensing, and the responsibilities of motor vehicle dealers. By formally defining manufacturer motor vehicle dealers, the bill opens pathways for manufacturers to engage directly with consumers through their own dealerships. This is expected to alter competition in the automotive sales market, potentially benefiting consumers by providing more options and fostering competitive pricing strategies.

Summary

SB2093 is a legislative bill focused on the regulation of motor vehicle dealers, manufacturers, and distributors in the state of Texas. The bill seeks to amend certain sections of the Transportation and Occupations Codes to clarify definitions and requirements regarding motor vehicle dealers, including the addition of a new category for manufacturer motor vehicle dealers. This change will allow manufacturers to sell their vehicles directly, under specific licensing provisions, thereby enhancing the market dynamics surrounding automobile sales in Texas.

Contention

Notable points of contention surrounding SB2093 include the implications of allowing manufacturers to act as dealers which may raise concerns among traditional franchise dealers. Opponents might argue that this could lead to an uneven playing field where established dealers face increased competition without the same operational advantages as these manufacturers. Additionally, there may be debates about consumer protection laws and how they will apply in scenarios where manufacturers take a more hands-on approach in direct sales.