Senate Bill 529 is currently on the Senate Intent calendar for today, April 20th.
SB 529 imposes restrictions on contract negotiations between automobile manufacturers and franchise dealers. The restrictions placed on these contracts restrict the freedom of contract between parties.
Government should not interfere in contractual agreements between two private parties in a market economy. The unintended consequences of doing so could have long-lasting negative ramifications for an industry that is already reeling from government intervention.
The ability to freely contract with private entities is essential to a free market economy and one of the major reasons why Texas has created more jobs over the last five years than all the other states combined. This Legislature should seriously consider the effects of changing the course of direction that has led to the Texas’ economic prosperity.