Bill

SB 1415

86(R) - 2019
Senate Business & Commerce
House Licensing & Administrative Procedures
Senate Business & Commerce
House Licensing & Administrative Procedures

Vote Recommendation

Yes
  • Positive
  • Neutral
  • Neutral
  • Positive
  • Neutral

Author(s)

Kelly Hancock

Sponsor(s)

Charlie Geren

Bill Caption

Relating to the ownership, control, or operation of a franchised or nonfranchised dealer or dealership by certain motor vehicle manufacturers and distributors.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

Current automobile franchise laws prohibit a motor vehicle manufacturer from owning an interest in any motor vehicle dealer. SB 1415 would allow for such a manufacturer or distributor to own an interest in a dealership so long as it does not directly or indirectly own an interest in, operate or control, or act in the capacity of a dealership for the same type of motor vehicle that the manufacturer manufactures or distributes.

Vote Recommendation Notes

Texas Action recommends supporting this bill as it promotes the principles of free markets and limited governments. This bill would repeal an unfair practice that has prohibited manufacturers and distributors from owning interest in dealerships that sell inventory completely different from their own.