Texas Senate Bill SB1267

Texas 2019 - 86th Regular

Caption

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

Impact

The implementation of SB1267 will specifically impact the motor vehicle industry in Texas by potentially increasing competition among dealerships. By allowing manufacturers to engage in dealership activities, the bill may lead to a shift in the dynamics of how vehicles are sold and serviced. Manufacturers will need to ensure that they provide equal support to other dealerships, addressing concerns related to monopolistic practices and ensuring that consumers continue to have choices when it comes to vehicle repairs and purchasing options.

Summary

SB1267 aims to amend the Occupations Code concerning the operation of motor vehicle dealerships by certain manufacturers. The bill allows a manufacturer who held a license prior to January 1, 2018, to also hold dealer licenses and operate as both a manufacturer and dealer. This dual role is contingent on the manufacturer adhering to specific conditions set forth in the bill, including providing equal access to repair resources for other dealers. The bill sets forth regulatory guidelines to ensure that manufacturers who are also dealers can operate in a way that supports fair competition among franchised dealers.

Contention

While the bill aims to encourage fair market practices, it does raise points of contention within the industry. Critics may express concern over the potential for larger manufacturers to dominate the market by leveraging their resources to undercut smaller franchised dealers. There are fears that this could lead to fewer options for consumers if local dealerships are unable to compete effectively. Legislative discussions will likely revolve around balancing the needs of manufacturers with ensuring that local dealers maintain a viable presence in the marketplace, addressing any regulatory changes that may inadvertently favor one party over another.