S.B. No. 533
                                        AN ACT
    1-1  relating to a principal who uses a sales representative.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Subdivisions (2) and (3), Section 35.81, Business
    1-4  & Commerce Code, are amended to read as follows:
    1-5              (2)  "Principal" means a person who:
    1-6                    (A)  <does not have a permanent or fixed place of
    1-7  business in this state;>
    1-8                    <(B)>  manufactures, produces, imports, or
    1-9  distributes a product for sale <to customers who purchase the
   1-10  product for resale>;
   1-11                    (B) <(C)>  uses a sales representative to solicit
   1-12  orders for the product; and
   1-13                    (C) <(D)>  compensates the sales representative
   1-14  in whole or in part by commission.
   1-15              (3)  "Sales representative" means an independent
   1-16  contractor <a person> who solicits on behalf of a principal orders
   1-17  for the purchase at wholesale of the principal's product.
   1-18        SECTION 2.  Sections 35.82, 35.83, and 35.84, Business &
   1-19  Commerce Code, are reenacted and amended to read as follows:
   1-20        Sec. 35.82.  Contract.  A contract between a principal and a
   1-21  sales representative under which the sales representative is to
   1-22  solicit wholesale orders within this state must be in writing or in
   1-23  a computer-based medium and set forth the method by which the sales
   1-24  representative's commission is to be computed and paid.  The
    2-1  principal shall provide the sales representative with a copy of the
    2-2  contract.  A provision in the contract establishing venue for an
    2-3  action arising under the contract in a state other than this state
    2-4  is void.
    2-5        Sec. 35.83.  Payment in Absence of Contract.  If a
    2-6  compensation agreement between a sales representative and a
    2-7  principal that does not comply with Section 35.82 <is not in
    2-8  writing> is terminated, the principal shall pay all commissions due
    2-9  the sales representative within thirty working days after the date
   2-10  of the termination.
   2-11        Sec. 35.84.  Damages.  A principal who fails to comply with a
   2-12  provision of a contract under Section 35.82 relating to payment of
   2-13  a commission or fails to pay a commission as required by Section
   2-14  35.83 is liable to the sales representative in a civil action for
   2-15  three times the unpaid commission <damages> sustained by the sales
   2-16  representative plus reasonable attorney's fees and costs.
   2-17        SECTION 3.  This Act takes effect September 1, 1995.
   2-18        SECTION 4.  The importance of this legislation and the
   2-19  crowded condition of the calendars in both houses create an
   2-20  emergency and an imperative public necessity that the
   2-21  constitutional rule requiring bills to be read on three several
   2-22  days in each house be suspended, and this rule is hereby suspended.