Texas House Bill HB2602

Texas 2019 - 86th Regular

Caption

Relating to the operation of a motor vehicle dealership by certain manufacturers.

Impact

The enactment of HB 2602 may lead to increased competition in the motor vehicle market as manufacturers gain the ability to also act as dealers. Supporters argue that this dual role can enhance service delivery and repair capabilities for consumers by ensuring that manufacturers provide relevant parts and technical support to their dealership. This could potentially streamline operations and reduce inefficiencies in the supply chain for motor vehicle repairs.

Summary

House Bill 2602 relates to the operation of motor vehicle dealerships by certain manufacturers. The bill amends the Occupations Code, specifically Section 2301.476, by allowing manufacturers who held a manufacturer's license as of January 1, 2018, to hold both a manufacturer's license and dealer licenses simultaneously. This provision is significant because it enables these manufacturers to operate as both manufacturers and dealers of motor vehicles under specific conditions. The bill outlines that they may manufacture only certain types of motor vehicles as defined within the existing regulatory framework.

Contention

Despite the potential benefits, the bill may prompt contention regarding regulation and oversight of manufacturers operating as dealers. Critics could express concerns about whether such manufacturers will uphold fair practices and provide equal support to both their own dealerships and independent franchised dealers. If manufacturers prioritize their operations over independent dealers, it might undermine the competitive landscape and consumer choice in the market.