Amend CSHB 381 by striking all below the enacting clause and
substituting the following:
      SECTION 1.  The heading of Chapter 19, Business & Commerce
Code, is amended to read as follows:
       CHAPTER 19.  FARM, INDUSTRIAL, OFF-ROAD CONSTRUCTION,
           AND OUTDOOR POWER EQUIPMENT DEALER AGREEMENTS
      SECTION 2.  Section 19.01, Business & Commerce Code, is
amended by amending Subdivisions (5) and (8) and adding Subdivision
(12) to read as follows:
            (5)  "Dealer" means a person in the business of the
retail sale of equipment. The term does not include a single line
dealer primarily engaged in the retail sale and service of off-road
construction and earthmoving <person whose principal business is
the sale of off-road construction> equipment.
            (8)  "Equipment" means farm tractors, farm implements,
utility tractors, industrial tractors, off-road construction
equipment, and outdoor power equipment and the attachments to or
repair parts for those items.
            (12)  "Single line dealer" means a person, partnership,
or corporation that:
                  (A)  has purchased 75 percent or more of the
dealer's total new product inventory from a single supplier under
all agreements with that supplier; and
                  (B)  has a total annual average sales volume for
the preceding three years with that single supplier in excess of
$100 million for the territory for which that dealer is responsible
within the state.
      SECTION 3.  Subchapter B, Chapter 19, Business & Commerce
Code, is amended by adding Section 19.28 to read as follows:
      Sec. 19.28.  WARRANTY CLAIM. (a)  This section applies to a
warranty claim submitted by a dealer:
            (1)  while the dealer agreement is in effect; or
            (2)  after the termination of the dealer agreement, if
the claim is for work performed before the effective date of the
termination.
      (b)  Not later than the 30th day after the date a supplier
receives a warranty claim from a dealer, the supplier shall accept
or reject the claim.  A claim not rejected before that deadline is
deemed accepted.
      (c)  Not later than the 30th day after the date the claim is
accepted or rejected, the supplier shall:
            (1)  pay an accepted claim; or
            (2)  send the dealer written notice of the grounds for
rejection of a rejected claim.
      (d)  A supplier that pays a claim, including a supplier of an
electric engine or motor, may not pay less than the hourly labor
rate and other expenses involved in the work that the dealer
regularly charges to a retail customer who does not assert a
warranty and the dealer's net price plus 15 percent for parts.  The
number of hours of labor claimed may not exceed 1-1/2 times the
supplier's recommended hours for the repair involved.
      (e)  After payment of a claim, a supplier may not charge
back, set off, or otherwise attempt to recover all or part of the
amount of the claim unless:
            (1)  the claim was fraudulent;
            (2)  the work for which the claim was made was not
properly performed or was unnecessary to comply with the warranty;
or
            (3)  the dealer did not substantiate the claim
according to the written requirements of the supplier in effect
when the claim arose.
      SECTION 4.  Section 19.43(a), Business & Commerce Code, is
amended to read as follows:
      (a)  If on termination of a dealer agreement the dealer
delivers to the supplier or a person designated by the supplier the
inventory that was purchased from the supplier and that is held by
the dealer on the date of the termination, the supplier shall pay
to the dealer:
            (1)  the dealer cost of new, unsold, undamaged, and
complete farm tractors, farm implements, utility tractors,
industrial tractors, forklifts, material-handling equipment,
outdoor power equipment, off-road construction equipment, and
attachments returned by the dealer;
            (2)  an amount equal to 85 percent of the current price
of new, undamaged repair parts returned by the dealer; and
            (3)  an amount equal to an additional five percent of
the current price of new, undamaged repair parts returned by the
dealer, unless the supplier performs the handling, packing, and
loading of the parts, in which case no additional amount is
required under this subdivision.
      SECTION 5.  Section 19.46, Business & Commerce Code, is
repealed.
      SECTION 6.  The change in law made by this Act applies only
to  a warranty claim received by a supplier on or after the
effective date of this Act.  A  warranty claim received before the
effective date of this Act is governed by the law in effect when
the claim was received, and the former law is continued in effect
for that purpose.
      SECTION 7.  This Act takes effect September 1, 1997.
      SECTION 8.  The importance of this legislation and the
crowded condition of the calendars in both houses create an
emergency and an imperative public necessity that the
constitutional rule requiring bills to be read on three several
days in each house be suspended, and this rule is hereby
suspended.