TX SB1917

Expands reimbursement requirements for motor vehicle franchised dealers to include recall work, over-the-air updates, and preparation/delivery work in addition to existing warranty work coverage

Requires manufacturers and distributors to compensate dealers at rates matching what dealers charge retail customers, calculated using the formula producing the fewest repair orders from either 100 sequential orders or 90 consecutive days in the preceding six months

Establishes specific definitions for "parts" that now include electric vehicle batteries, software, and transmissions, and specifies exclusions from rate calculations including routine maintenance, tire/wheel work, goodwill repairs, and state inspections

Raises the evidentiary standard for manufacturers to contest dealer rate requests from "preponderance of evidence" to "clear and convincing evidence" and requires detailed written explanations for any disapproval, reduction, or claimed inaccuracy

Prohibits manufacturers from recovering dealer compensation through surcharges, supplemental charges, reduced return reserve allowances, or special part numbers designed to lower reimbursement amounts

Takes effect September 1, 2025, applying only to work commenced on or after that date