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.