How SB2099 changes current law

Compared against the Texas statutes as published AI-generated reading aid — verify against the official bill.

This bill amends 1 section(s) of the Texas statutes: Section 2301.003, Occupations Code.

• Section 2301.003, Occupations Code

  (c) A manufacturer or distributor may not, if the result would be injurious to a dealer or to the public: (1) coerce or compel or attempt to coerce or compel by threat or by other adverse consequence the dealer to agree to a program or incentive provision, including a loss of an incentive or benefit; or (2) amend a franchise agreement. (d) A manufacturer or distributor may not take an adverse action or initiate an action or proceeding, in response to a dealer initiating an action or proceeding, including an action or proceeding to which the manufacturer or distributor is a party, to enforce a right or remedy available to the dealer under law or by agreement.

  amended

• the greater of LABOR RATE labor : (1) ; or (2) fails to respond within the time required by this section or failure to respond or failure to respond of subchapter subchapter → AND RECALLS Sec. 2301.4001. DEFINITIONS. In this subchapter: (1) "Goodwill repair" means a repair made by a seller for no charge that the seller is not obligated to make. (2) "Part" includes any equipment, fixture, good, or software that is provided by a manufacturer or distributor for a motor home or towable recreational vehicle. (3) "Routine maintenance" includes replacement of a fluid, filter, battery, bulb, belt, nut, bolt, or fastener, unless the fluid, filter, battery, bulb, belt, nut, bolt, or fastener is provided by the manufacturer or distributor in the course of a repair with an assigned part number. RECALL, and under a manufacturer's or distributor's recall , recall, or distributor , recall, and preparation and delivery or recall for labor the formula, of the following formulas, that produces the fewest number of repair orders paid by retail customers : (A) (B) tire or wheel alignment; (C) discounts to state agencies, insurers, or warranty or service contract providers; (D) state inspections; (E) goodwill repairs; (F) accessory installation; and (G) a manufacturer's or distributor's promotion or service campaign; paid by retail customers : (A) ; (B) tire or wheel alignment; (C) discounts to state agencies, insurers, or warranty or service contract providers; (D) state inspections; (E) goodwill repairs; (F) accessory installation; and (G) a manufacturer's or distributor's promotion or service campaign (d) The average labor rate under Subsection (c) is determined by dividing the total charges for labor submitted by the total number of hours charged for the repairs. (e) In computing the amount of money a dealer charges a retail customer under Subsection (b) for parts, the manufacturer or distributor shall use the formula, of the following formulas, that produces the fewest number of repair orders: (1) the average parts markup charged during the preceding six months by the dealer on 100 sequential nonwarranty repair orders paid by retail customers, exclusive of: (A) routine maintenance; (B) tire or wheel alignment; (C) discounts to state agencies, insurers, or warranty or service contract providers; (D) state inspections; (E) goodwill repairs; (F) accessory installation; and (G) a manufacturer's or distributor's promotion or service campaign; or (2) the average parts markup charged for 90 consecutive days during the preceding six months by the dealer for nonwarranty repairs paid by retail customers, exclusive of: (A) routine maintenance; (B) tire or wheel alignment; (C) discounts to state agencies, insurers, or warranty or service contract providers; (D) state inspections; (E) goodwill repairs; (F) accessory installation; and (G) a manufacturer's or distributor's promotion or service campaign. (f) The average parts markup for Subsection (e) is determined by dividing the total charges for parts submitted by the total cost of the parts for which charges are submitted. (g) The submissions under Subsections (c) and (e) may consist of: (1) a single set of repair orders for calculating the dealer's retail customer labor rate and the dealer's retail customer parts rate; or (2) one set of repair orders for calculating the dealer's retail customer labor rate and a separate set for calculating the dealer's retail customer parts rate. (h) If a manufacturer or distributor supplies a part to a dealer at no cost or at a reduced cost for use in a warranty or recall repair, the manufacturer or distributor shall compensate the dealer for the dealer's cost for the part, if any, plus an amount equal to the dealer's prevailing retail parts markup, multiplied by the fair wholesale value of the part. (i) For purposes of Subsection (h), the fair wholesale value of a part is the greater of: (1) the amount the dealer paid for the part or a substantially identical part if presently owned by the dealer; (2) the cost of the part as shown in a current or previously established price schedule of the manufacturer or distributor; or (3) the cost of a

  amended