Texas 2025 - 89th Regular

Texas House Bill HB3859

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
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, over-the-air, and preparation and delivery work.

Impact

If established, HB 3859 will influence the existing regulatory framework governing motor vehicle dealers. It mandates manufacturers and distributors to compensate their dealers fairly, based on established formulas and without imposing additional charges that could undermine dealer profitability. By requiring manufacturers to follow these compensation guidelines strictly, it seeks to improve financial outcomes for dealers, particularly in warranty and recall work scenarios, thereby fostering a more stable economic environment for motor vehicle sales and service.

Summary

House Bill 3859 addresses the relationship between motor vehicle franchised dealers and manufacturers or distributors. It outlines specific requirements for how dealers should be compensated for warranty and recall work, including over-the-air services. The bill seeks to provide clarity in the compensation structure, ensuring that dealers receive fair remuneration for the services they provide under manufacturer warranties and recalls. This initiative seems aimed at balancing the financial interests of both dealers and manufacturers while enhancing the overall customer service experience in the automotive industry.

Contention

While the bill is primarily aimed at protecting dealers' interests, it could be met with resistance from some manufacturers who may view it as a limitation on their operational flexibility. Critics might argue that the bill could impose higher costs on manufacturers, potentially leading to increased prices for consumers or reduced incentives for dealers to offer additional services. The implementation of this bill may thus result in a reconfiguration of the dealer-manufacturer relationship, necessitating negotiations and compliance adjustments to align with the new requirements.

Companion Bills

TX SB1917

Identical 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.

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 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 HB2127

Relating to motor vehicle dealer franchises.

TX SB00412

An Act Concerning The Offering Price Of A Motor Vehicle And Provisions Of The Franchise Act Governing Agreements Between Automobile Manufacturers Or Distributors And Automobile Dealers.

TX SB22

Motor Vehicle Manufacturers As Dealers

TX HB1041

Relative to permitting motor vehicle manufacturers to operate dealerships in market areas also served by franchise dealers.

TX H5590

Extends certain protocols applicable to motor vehicle manufacturers to their distributors and factory branches, as well as updates warranty reimbursement and recall obligation policies.

Similar Bills

CA AB646

Insurance: warranty: catalytic converter.

FL H0367

Home and Service Warranty Association Financial Requirements

CT SB01425

An Act Concerning Motor Vehicle Protection Products.

CA AB1903

Construction defects.

FL S0282

Warranty Associations

IA HSB523

A bill for an act relating to certain sales of auto club memberships and vehicle warranties.

NJ S2710

Requires electric public utilities and gas public utilities to implement or maintain public utility warranty programs that cover full cost to repair or replace covered appliances.

NJ A2234

Requires electric public utilities and gas public utilities to implement or maintain public utility warranty programs that cover full cost to repair or replace covered appliances.