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Dealers and manufacturers at odds as committee considers warranty‑reimbursement overhaul
Summary
Senate Bill 19‑17 would change how manufacturers reimburse dealers for warranty parts, add definitions and a parts‑pricing formula, and address over‑the‑air updates and special parts. Automakers opposed the filed version as overbroad; dealers urged parity and fair compensation.
Senate Bill 19‑17, introduced to clarify warranty reimbursement and parts pricing under chapter 2301 of the Occupations Code, produced strongly divergent testimony from franchised dealers and vehicle manufacturers.
Author Senator Milton said the bill aims to "address issues through amending chapter 2301 ... to clarify the warranty reimbursement language," including definitions for goodwill repair parts and routine maintenance, a parts formula to mirror labor‑rate calculations, and reimbursement for recalls, over‑the‑air updates and specialty…
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