Texas House Bill HB3077

Texas 2019 - 86th Regular

Caption

Relating to certain obligations of franchised dealers in connection with certain warranties for a new motor vehicle.

Impact

By implementing this bill, the Texas legislature aims to enhance consumer rights related to automotive purchases. It marks a significant step toward increasing accountability among franchised dealers and ensuring adherence to warranty obligations laid out at the time of sale. This change may lead to improved consumer satisfaction and trust, reinforcing the notion that consumers should have recourse if a vehicle's warranty is not honored. Moreover, it signals to manufacturers and dealers that compliance with warranty provisions is not optional but mandatory.

Summary

House Bill 3077 addresses the obligations that franchised dealers have in connection with warranties on new motor vehicles. This bill essentially amends Section 2301.602(a) of the Texas Occupations Code, clarifying the responsibilities of manufacturers, distributors, and franchised dealers regarding the enforcement of warranty obligations. The intent behind the bill is to ensure that consumers have the necessary protections when it comes to the warranties offered by these dealers, thereby promoting trust in the automotive market within the state of Texas.

Contention

While the bill may be seen as beneficial for consumer protection, there could be opposition from dealers and manufacturers, who may view the new obligations as burdensome. Critics might argue that increasing the regulatory framework surrounding warranties could lead to additional costs for franchised dealers, potentially affecting their business operations. If these stakeholders perceive the bill as an overreach, there might be concerns raised in legislative discussions and public forums regarding its feasibility and economic implications.