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 Section 19.46, Business & Commerce Code, is 2-13 repealed. 2-14 SECTION 3.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.