Texas Senate Bill SB2099

Texas 2023 - 88th Regular

• Filed: 3/9/23

Caption

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, and preparation and delivery work.

Impact

The implementation of SB2099 will directly affect Section 2301 of the Occupations Code, which governs the operations of motor vehicle franchised dealers in Texas. Key amendments include provisions against the inappropriate coercion of dealers and the establishment of transparent criteria for compensation rates. The bill also clarifies that manufacturers cannot impose unreasonable requirements on dealers related to claims for warranty and recall work, significantly enhancing consumer protection and ensuring that dealers are not undercompensated for necessary work.

Summary

SB2099 aims to enhance the regulations concerning motor vehicle franchised dealers and their reimbursement by manufacturers and distributors for warranty, recall, and preparation and delivery work. The bill seeks to establish clear guidelines that ensure fair compensation for dealers, preventing any adverse actions against them that may arise when they exercise their rights related to warranty and recall obligations. This is particularly important in an industry where dealers often face challenges in receiving adequate reimbursement from manufacturers for the work they perform under these categories.

Sentiment

The general sentiment around SB2099 appears to be supportive, particularly among dealers who advocate for greater transparency and fairness in their dealings with manufacturers. Many stakeholders believe that the enhanced protections for dealers will lead to a more equitable business environment, allowing them to operate more effectively. However, there might be some concerns expressed by manufacturers about the implications of increased regulations on their operational flexibility, suggesting a mixed sentiment depending on the stakeholder's position in the motor vehicle supply chain.

Contention

Notable contentions surrounding SB2099 focus on the balance between dealer protection and manufacturer autonomy. Dealers argue that the bill is necessary to prevent exploitative practices, while some manufacturers might view it as an unnecessary regulatory burden. Key points of contention include the definition of 'reasonable' compensation and the transparency of the reimbursement process, which could lead to disagreements in interpretation and implementation. Overall, the bill highlights the ongoing struggle between ensuring dealer rights and maintaining manufacturer interests in a competitive market.

Texas Constitutional Statutes Affected

Occupations Code

• Chapter 2301. Sale Or Lease Of Motor Vehicles
  • Section: 003
  • Section: 401
  • Section: 402
  • Section: 403
  • Section: 404
  • Section: 405
  • Section: 406