By Swinford H.B. No. 381
75R1639 DWS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a warranty claim by a farm, industrial, or outdoor
1-3 power equipment dealer.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 19, Business & Commerce
1-6 Code, is amended by adding Section 19.28 to read as follows:
1-7 Sec. 19.28. WARRANTY CLAIM. (a) This section applies to a
1-8 warranty claim submitted by a dealer:
1-9 (1) while the dealer agreement is in effect; or
1-10 (2) after the termination of the dealer agreement, if
1-11 the claim is for work performed before the effective date of the
1-12 termination.
1-13 (b) Not later than the 30th day after the date a supplier
1-14 receives a warranty claim from a dealer, the supplier shall accept
1-15 or reject the claim. A claim not rejected before that deadline is
1-16 deemed accepted.
1-17 (c) Not later than the 30th day after the date the claim is
1-18 accepted or rejected, the supplier shall:
1-19 (1) pay an accepted claim; or
1-20 (2) send the dealer written notice of the grounds for
1-21 rejection of a rejected claim.
1-22 (d) A supplier that pays a claim may not pay less than the
1-23 amount the dealer regularly charges for the labor, parts, and other
1-24 expenses involved in the work to a retail customer who does not
2-1 assert a warranty.
2-2 (e) After payment of a claim, a supplier may not charge
2-3 back, set off, or otherwise attempt to recover all or part of the
2-4 amount of the claim unless:
2-5 (1) the claim was fraudulent;
2-6 (2) the work for which the claim was made was not
2-7 properly performed or was unnecessary to comply with the warranty;
2-8 or
2-9 (3) the dealer did not substantiate the claim
2-10 according to the written requirements of the supplier in effect
2-11 when the claim arose.
2-12 SECTION 2. Section 19.46, Business & Commerce Code, is
2-13 repealed.
2-14 SECTION 3. The change in law made by this Act applies only
2-15 to a warranty claim received by a supplier on or after the
2-16 effective date of this Act. A warranty claim received before the
2-17 effective date of this Act is governed by the law in effect when
2-18 the claim was received, and the former law is continued in effect
2-19 for that purpose.
2-20 SECTION 4. This Act takes effect September 1, 1997.
2-21 SECTION 5. The importance of this legislation and the
2-22 crowded condition of the calendars in both houses create an
2-23 emergency and an imperative public necessity that the
2-24 constitutional rule requiring bills to be read on three several
2-25 days in each house be suspended, and this rule is hereby suspended.
2-26 COMMITTEE AMENDMENT NO. 1
2-27 Amend House Bill 381 Section 1(d) is amended to read:
3-1 (d) A supplier that pays a claim, including suppliers of
3-2 electric engines or motors, may not pay less than the agreed [amount]
3-3 hourly labor rate the dealer regularly charges for [the] labor and
3-4 the costs the dealer pays for parts, and other expenses involved in
3-5 the work to a retail customer who does not assert a warranty.
3-6 Dukes