Recent Statewide Poll Shows Bill Enjoys Overwhelming Support
Texas Insider Report: AUSTIN Texas Representatives Eddie Rodriguez Charles Doc" Anderson Jodie Laubenberg Tan Parker and
Ron Simmons and Senator Kelly Hancock filed
House Bill 1653/Senate Bill 639 to allow Texans to purchase certain new vehicles directly from the manufacturer.
Under the states current law new vehicles can only be sold through a franchised dealership.
Free market principles are the foundation of our strong Texas economy said Hancock.
SB 639 helps sustain a competitive marketplace and gives consumers more choices.
The Department of Justice found in a 2009 study that direct distribution of new vehicles could save consumers on average more than $2200 per vehicle.
Added Rodriguez Our current franchise dealership laws were created to prevent vehicle manufacturers from unfairly competing with their existing franchised dealerships not to restrict competition.
HB 1653 ensures Texans have access to breakthrough automotive technology."
Most states already allow some form of direct sales of new vehicles.
HB 1653/SB 639 will bring Texas in line with best industry practices across the country.
Our hard-earned reputation as a state with low taxes and limited regulations should be an encouragement to all who wish to bring new investment and good jobs to Texas. Lets not be a protectionist state and kill innovation in the automotive industry but instead allow the free market to decide the fate of new ideas" said Laubenberg.
HB 1653/SB 639 is carefully limited in scope: it applies only to manufacturers that have not engaged previously in the dealer/franchise system and it caps the number of permissible sales licenses at 12 within the state.
I signed on as a joint author to
HB 1653 because I believe it strikes the right balance between promoting economic freedom to choose and respecting existing successful relationships between vehicle manufacturers and their franchised dealerships. In Texas we should be about tearing down barriers to free trade not erecting them said Anderson.
HB 1653/SB 639 enjoys overwhelming support from Texans. According to a recent statewide survey of 1201 adults (conducted 1/26/15-1/31/15) by pollster Baselice & Associates 84 percent of Texans favor allowing consumers to be able to purchase certain new cars directly from the manufacturer.
