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Bill

SB 1917

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, over-the-air, and preparation and delivery work.

89th Legislature (2025) Introduced by Mayes Middleton

Bill establishes mandatory reimbursement standards for Texas franchised dealers performing manufacturer-required warranty, recall, software, and delivery work to ensure fair compensation.

Left pending in committee
#business&commerce--general(i0050) #motorvehicledealers(s1214) #occupationalregulation--othertrades&professions(i0541) #vehicles&traffic--equipment(i0855) #vehicles&traffic--general(i0865)
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Bill Summary · SB 1917

Legislative bill overview

SB 1917 establishes reimbursement standards for Texas motor vehicle franchised dealers when manufacturers and distributors compensate them for warranty work, recall repairs, over-the-air software updates, and vehicle preparation/delivery services. The bill appears to create rules governing how much dealers must be paid for these manufacturer-required services that fall outside typical sales transactions.

Why is this important

Franchised dealers operate under agreements with manufacturers but often perform work mandated by manufacturers (recalls, software updates, warranty repairs) without guaranteed fair compensation. This bill directly affects dealer profitability and sustainability, while indirectly impacting consumers through service availability and pricing. The dispute over fair reimbursement rates has been a persistent tension in the dealer-manufacturer relationship.

Potential points of contention

  • Reimbursement rate methodology: Manufacturers argue their rates reflect market conditions and efficiency standards, while dealers contend rates don't cover actual labor costs, diagnostics, or facility overhead
  • Over-the-air update provisions: Unclear whether remote software updates should trigger dealer compensation or how to value work performed remotely versus in-shop
  • Compliance burden: Manufacturers may face administrative complexity and cost increases if required to justify reimbursement methodologies or meet specific rate floors

Compiled from official sources — confirm details with the bill’s official record.

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