Enrolled Bill Summary

House Bill 3079	House Author:  Darby
Effective:  9-1-11	Senate Sponsor:  Deuell

House Bill 3079 amends the Business & Commerce Code to enact the Fair Practices of Equipment Manufacturers, Distributors, Wholesalers, and Dealers Act, relating to dealer agreements regarding the purchase and sale of certain equipment or machinery used for agricultural, construction, industrial, mining, outdoor power, forestry, and landscaping purposes, and repeal a chapter of the code relating to farm, industrial, off-road construction, forestry harvesting, and outdoor power equipment dealer agreements. The bill makes void any provision in a dealer agreement that purports to elect the application of a law of another state instead of the law of Texas and any provision that requires a dealer to pay attorney's fees incurred by the supplier. The bill provides for the sale, transfer, or ownership of a dealership, sets out notice requirements for a party terminating a dealer agreement, and prohibits such termination without good cause. The bill specifies the conditions under which good cause exists and sets out provisions governing termination of a single-line dealer agreement and an agreement other than a single-line dealer agreement.

House Bill 3079 sets out provisions relating to a warranty claim submitted by a dealer to the supplier, a supplier's warranty reimbursement policies and procedures, terms for reimbursement, prohibited activity on the part of a supplier relating to the delivery, sale, and return of equipment, the repurchase of a dealer's inventory, and obligations following a cancellation or nonrenewal of a dealer's agreement. The bill authorizes a dealer, if a supplier violates any provision of the act, to bring an action against the supplier for damages sustained by the dealer as a consequence of the supplier's violation and sets out provisions governing related actions and remedies.