Bill Caption

Fiscal Notes

Bill Analysis

SB 1572 would amend the Occupations Code to allow a person who on January 1st, 2017, was an independent engine manufacturer and held a motor vehicle manufacturer’s license to hold a manufacturers license, a general distinguishing number, and no more than nine dealer’s licenses. The individual also may operate as both a manufacturer and dealer of new motor vehicles.

The bill author's statement of intent explains the purpose behind this legislation:

"In 2001, the Occupations Code was updated to include an expanded definition of “motor vehicle.” Due to this change, an engine, transmission, or axle is considered to be a motor vehicle, making component manufacturers subject to the entire dealer statute. Part of this statute prohibits one entity from doing distribution and repair work."

Vote Recommendation Notes

While this legislation is intended to help a business that was put into a difficult position by a past legislature, it is an odd way of fixing the problem. It is also a revealing bill in that it demonstrates how easily legislation, in this case a 2001 bill to redefine "motor vehicle" can have negative unintended consequences. It seems that an easier way to solve this problem would be to simply state explicitly that an engine, transmission, or axle is not a motor vehicle for the purpose of the related licenses. Despite being a convoluted way of addressing a legislatively created problem, this bill does not offend our liberty principles and we remain neutral.