Texas Senate Bill SB897

Texas 2019 - 86th Regular

Caption

Relating to the regulation of salvage vehicle dealers.

Impact

The enactment of SB897 will directly impact the operational landscape for salvage vehicle dealers in Texas. By mandating that these dealers obtain proper licenses, the bill enhances consumer protection by minimizing the possibility of unethical practices among unlicensed dealers. Additionally, this move is expected to foster a more organized marketplace where licensed dealers are held to higher standards, leading to potential improvements in the quality of services offered to consumers.

Summary

Senate Bill 897 aims to regulate salvage vehicle dealers in Texas by amending Section 2302.101 of the Occupations Code. This legislation establishes that anyone wishing to act as a salvage vehicle dealer or rebuilder must hold a salvage vehicle dealer license or an independent motor vehicle dealer's general distinguishing number. This requirement ensures that dealers operate within the state's regulatory framework, promoting accountability and professionalism in the industry.

Contention

Though the legislation is aimed at tightening regulations for salvage vehicle dealers, it may face opposition from smaller, independent dealers who argue that the licensing requirements could impose additional financial burdens on their operations. Critics claim that such regulations could disproportionately affect local businesses that may not have the resources to comply quickly with new licensing procedures. The need for a balance between regulation for consumer protection and the promotion of small business interests may be a significant point of discussion as the bill moves through the legislative process.