Subscribe to receive our Floor Reports covering all the action on the Texas House and Senate floor!
Relating to the ownership, control, or operation of a franchised or nonfranchised dealer or dealership by certain motor vehicle manufacturers and distributors.
No significant fiscal implication to the State is anticipated.
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.
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.