Pub. 58 2017-2018 Issue 3

16 February 9, 2018 Ms. Virginia K. Hoelscher Chair, Opinion Committee Attorney General of Texas P. 0. Box 12548 Austin, TX 78711-2548 Submitted via email: opinion.committee@oag.texas.gov Re: Whether a motor vehicle manufacturer or distributor that performs warranty services under a manufacturer’s warranty is in violation of Section 2301.476(c)(3) of the Occupations Code (RQ-0206-KP). Dear Ms. Hoelscher: Texas Franchise Laws Please accept this filing in response to RQ-0206-KP on behalf of the Texas Automobile Dealers Association (TADA), an association comprised of franchised motor vehicle dealers. Members of TADA include franchised automobile and truck dealers who retail motor vehicles, including: passenger vehicles, light duty trucks, medium duty trucks, heavy duty trucks, as well as engines and transmissions for a vehicle with a gross vehicle weight (GVW) more than 16,000 pounds. TADA respectful ly requests the Attorney Genera l to f ind that a manufacturer or distributor that performs warranty and repair services under a manufacturer's warranty is in violation of the Occupations Code, Chapter 2301. BACKGROUND The Texas Legislature enacted the Texas Motor Vehicle Commission Code (“TMVC Code”) in 1971. 1 The purpose of the statute remains as relevant today as in 1971. The Legisla- ture recognizes that the motor vehicle impacts every Texan’s daily life and adopted a statutory balance guarantee- ing intra-brand competition for each individual and business transportation needs. Giving our citizenry less than intra-brand competition results in higher prices, fewer opportunities, and less accountability. The Legislature’s stated policy and purpose for the 1971 passage of the TMVC Code 2 (now codified in the Texas Occupations Code) are almost identical to the language in today’s statute, as the state’s intent and objec- tive for the statute is enduring and constant: § 2301.001. Construction; Purpose The distribution and sale of motor vehicles in this state vitally affects the general economy of the state and the public interest and welfare of its citi- Reprinted for the dealer’s information is TADA’s response to the Attorney General of Texas’ request regarding the performance of warranty repairs under the Texas Occupations Code, as filed by TADA’s General Counsel and EVP, Karen Phillips.