H.B. No. 1736
1-1 AN ACT
1-2 relating to termination of certain agreements between suppliers of
1-3 and dealers in farm, industrial, and outdoor power equipment.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 19.43, Business & Commerce Code, is
1-6 amended to read as follows:
1-7 Sec. 19.43. RETURN OF INVENTORY. (a) If on termination of
1-8 a dealer agreement the dealer delivers to the supplier or a person
1-9 designated by the supplier the inventory that was purchased from
1-10 the supplier and that is held by the dealer on the date of the
1-11 termination, the supplier shall pay to the dealer:
1-12 (1) the dealer cost of new, unsold, undamaged, and
1-13 complete farm tractors, farm implements, utility tractors,
1-14 industrial tractors, forklifts, material-handling equipment,
1-15 outdoor power equipment, and attachments returned by the dealer;
1-16 (2) an amount equal to 85 percent of the current price
1-17 of new, undamaged repair parts returned by the dealer; and
1-18 (3) an amount equal to an additional five percent of
1-19 the current price of new, undamaged repair parts returned by the
1-20 dealer, unless the supplier performs the handling, packing, and
1-21 loading of the parts, in which case no additional amount is
1-22 required under this subdivision.
1-23 (b) Before returning inventory under this section and not
1-24 later than the 120th day after the effective date of termination,
2-1 the dealer shall submit to the supplier a list of the inventory the
2-2 dealer intends to return, including to the extent possible each
2-3 item's trade name, description, and serial number. Not later than
2-4 the 60th day after the date the supplier receives the list, the
2-5 supplier shall notify the dealer in writing of:
2-6 (1) each item that the supplier claims is not subject
2-7 to reimbursement under this section; and
2-8 (2) the destination of each item the dealer is to
2-9 deliver to a person designated by the supplier.
2-10 (c) The supplier may subtract from the sum due under
2-11 Subsection (a) of this section the amount of debts owed by the
2-12 dealer to the supplier. The supplier and dealer are each
2-13 responsible for one-half of the cost of delivering the inventory to
2-14 the supplier or to a person designated by the supplier, except that
2-15 if the dealer delivers an item to a person designated by the
2-16 supplier the dealer is not responsible for an amount that exceeds
2-17 the amount for which the dealer would have been responsible if the
2-18 item had been delivered to the supplier.
2-19 (d) <(c)> The supplier shall pay the amount due under this
2-20 section before the 91st <61st> day after the day that the supplier
2-21 or person designated by the supplier receives inventory from the
2-22 dealer and after the dealer has furnished proof that the inventory
2-23 was purchased from the supplier.
2-24 (e) <(d)> On payment of the amount due under this section,
2-25 title to the inventory is transferred to the supplier or other
2-26 person designated by the supplier.
2-27 (f) The supplier and dealer may by agreement alter the time
3-1 limits provided by this section.
3-2 SECTION 2. This Act applies only to the termination of an
3-3 agreement for which initial notice of the termination is given on
3-4 or after the effective date of this Act. A termination for which
3-5 initial notice is given before the effective date of this Act is
3-6 covered by the law in effect when the initial notice was given, and
3-7 the former law is continued in effect for that purpose.
3-8 SECTION 3. This Act takes effect September 1, 1995.
3-9 SECTION 4. The importance of this legislation and the
3-10 crowded condition of the calendars in both houses create an
3-11 emergency and an imperative public necessity that the
3-12 constitutional rule requiring bills to be read on three several
3-13 days in each house be suspended, and this rule is hereby suspended.