House Bill 2963 is moving forward quickly as time begins to run out on the Texas legislative session. The Right to Repair bill has now passed the House and is scheduled for a hearing in the Senate Committee on Business and Commerce tomorrow at 8 am.
The House bill sponsor initially agreed to include our industry exemption language during stakeholder discussions prior to session. However, that language was never included. The bill does include an exemption for heavy equipment as defined in the bill (covers construction equipment) and an exemption for farm equipment manufacturers party to an industry recognized Memorandum of Understanding. A later amendment to the bill narrowed the scope to consumer’s purchasing products for “personal, family, or household purposes.”
The sloppy drafting creates ambiguity and leaves a lot of holes in the exemption language. We remain opposed to the bill and have sent our position statement to members of the committee and the senate bill sponsor, Senator Bob Hall (R).
We are asking dealers to submit written opposition to the Senate Business and Commerce Committee members and the Senate sponsor before the hearing tomorrow morning:
charles.schwertner@senate.texas.gov
judith.zaffirini@senate.texas.gov
jose.menendez@senate.texas.gov
nathan.johnson@senate.texas.gov
donna.campbell@senate.texas.gov
robert.nichols@senate.texas.gov
mayes.middleton@senate.texas.gov
brandon.creighton@senate.texas.gov
Lois.Kolkhorst@senate.texas.gov
Sponsor: Bob.Hall@senate.texas.gov
Talking Points:
- The exemption language is not comprehensive and should be amended to include our industry exemption language submitted by NAEDA.
- Five states passing Right to Repair legislation have included the industry exemption for off-road equipment.
- Without the exemption, our business would be subject to language in the bill that would force us to sell parts at cost and prohibit us from making a profit.
- Section 121.001(7)(B)(ii) requires the manufacturer to sell parts at cost. This turns our suppliers into our competitors. If the manufacturer makes parts available through their authorized dealers, it prohibits us from making a profit on the sale of parts. That is government price fixing at its worst.
- If we are forced to sell parts at cost, our parts inventory will be significantly reduced and lead to increased downtime for our customers.
- If we are forced to sell parts at cost, we will need to reduce our workforce because of lost profits.
The bill is not ready for prime time and should not be moved out of committee. Position Statement. If you have questions or comments, please get in touch with me directly.
