By Swinford H.B. No. 1736
74R5612 DWS-D
A BILL TO BE ENTITLED
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, outdoor power equipment, and attachments
1-15 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 date notice of termination is
2-1 given by either party, the dealer shall submit to the supplier a
2-2 list of the inventory the dealer intends to return, including to
2-3 the extent possible each item's trade name, description, and serial
2-4 number. Not later than the 60th day after the date the supplier
2-5 receives the list, the supplier shall notify the dealer in writing
2-6 of:
2-7 (1) each item that the supplier claims is not subject
2-8 to reimbursement under this section; and
2-9 (2) the destination of each item the dealer is to
2-10 deliver to a person designated by the supplier.
2-11 (c) The dealer may not deliver an item contested by the
2-12 supplier under Subsection (b) and reimbursement is not due for the
2-13 item until the dispute over the application of this section to the
2-14 item is settled as provided by law. Any item on the list that the
2-15 supplier does not timely contest may be delivered and its cost
2-16 shall be reimbursed as provided by this section.
2-17 (d) The supplier may subtract from the sum due under
2-18 Subsection (a) of this section the amount of debts owed by the
2-19 dealer to the supplier. The supplier and dealer are each
2-20 responsible for one-half of the cost of delivering the inventory to
2-21 the supplier or to a person designated by the supplier, except that
2-22 if the dealer delivers an item to a person designated by the
2-23 supplier the dealer is not responsible for an amount that exceeds
2-24 the amount for which the dealer would have been responsible if the
2-25 item had been delivered to the supplier.
2-26 (e) <(c)> The supplier shall pay the amount due under this
2-27 section before the 31st <61st> day after the day that the supplier
3-1 or person designated by the supplier receives inventory from the
3-2 dealer and after the dealer has furnished proof that the inventory
3-3 was purchased from the supplier.
3-4 (f) <(d)> On payment of the amount due under this section,
3-5 title to the inventory is transferred to the supplier or other
3-6 person designated by the supplier.
3-7 (g) The supplier and dealer may by agreement alter the time
3-8 limits provided by this section.
3-9 SECTION 2. This Act applies only to the termination of an
3-10 agreement for which initial notice of the termination is given on
3-11 or after the effective date of this Act. A termination for which
3-12 initial notice is given before the effective date of this Act is
3-13 covered by the law in effect when the initial notice was given, and
3-14 the former law is continued in effect for that purpose.
3-15 SECTION 3. This Act takes effect September 1, 1995.
3-16 SECTION 4. The importance of this legislation and the
3-17 crowded condition of the calendars in both houses create an
3-18 emergency and an imperative public necessity that the
3-19 constitutional rule requiring bills to be read on three several
3-20 days in each house be suspended, and this rule is hereby suspended.