Texas 2023 - 88th Regular

Texas Senate Bill SB2099

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

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.

Companion Bills

TX HB4078

Identical 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.

Previously Filed As

TX SB1917

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

TX HB3859

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

TX H0989

Motor Vehicle Manufacturers, Importers, and Distributors and Franchised Motor Vehicle Dealers

TX S1562

Motor Vehicle Manufacturers, Importers, and Distributors and Franchised Motor Vehicle Dealers

TX S1820

Motor Vehicle Manufacturers and Franchised Motor Vehicle Dealers

TX H0429

Motor Vehicle Manufacturers and Franchised Motor Vehicle Dealers

TX HB429

Motor Vehicle Manufacturers and Franchised Motor Vehicle Dealers:

TX HB2127

Relating to motor vehicle dealer franchises.

TX SB1081

Modifies provisions relating to compensation made by motor vehicle franchisors to franchisees

TX SB502

Modifies dealer compensation by franchisors under the Motor Vehicle Franchise Practices Act

Similar Bills

TX SB1917

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

KY HB648

AN ACT relating to motor vehicle dealers.

KY SB94

AN ACT relating to motor vehicle dealers.

TX HB3859

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

VA SB1308

Motor vehicle dealers; recall and warranty costs, right of first refusal.

VA HB1683

Motor vehicle dealers; recall and warranty costs, right of first refusal.

ND HB1515

Motor vehicle warranty work compensation.