By Swinford, Van de Putte H.B. No. 533
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain dealer agreements concerning off-road
1-3 construction equipment.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The heading of Chapter 19, Business & Commerce
1-6 Code, is amended to read as follows:
1-7 CHAPTER 19. FARM, INDUSTRIAL, OFF-ROAD CONSTRUCTION,
1-8 AND OUTDOOR POWER EQUIPMENT DEALER AGREEMENTS
1-9 SECTION 2. Section 19.01, Business & Commerce Code, is
1-10 amended by amending Subsections (5) and (8) and adding Subsection
1-11 (12) to read as follows:
1-12 (5) "Dealer" means a person in the business of the
1-13 retail sale of equipment. The term dealer shall not include a
1-14 single line dealer primarily engaged in the retail sale and service
1-15 of off-road construction and earthmoving equipment. [The term does
1-16 not include a person whose principal business is the sale of
1-17 off-road construction equipment.]
1-18 (8) "Equipment" means farm tractors, farm implements,
1-19 utility tractors, industrial tractors, off-road construction
1-20 equipment, and outdoor power equipment and the attachments to or
1-21 repair parts for those items.
1-22 (12) "Single line dealer" means a person, partnership,
1-23 or corporation which:
1-24 (A) has purchased 75 percent or more of the
2-1 dealer's total new product inventory from a single supplier under
2-2 all agreements with that supplier; and
2-3 (B) has a total annual average sales volume for
2-4 the three previous years with that single supplier in excess of
2-5 $100 million for the territory for which that dealer is responsible
2-6 within the state.
2-7 SECTION 3. Section 19.43(a), Business & Commerce Code, is
2-8 amended to read as follows:
2-9 (a) If on termination of a dealer agreement the dealer
2-10 delivers to the supplier or a person designated by the supplier the
2-11 inventory that was purchased from the supplier and that is held by
2-12 the dealer on the date of the termination, the supplier shall pay
2-13 to the dealer:
2-14 (1) the dealer cost of new, unsold, undamaged, and
2-15 complete farm tractors, farm implements, utility tractors,
2-16 industrial tractors, forklifts, material-handling equipment,
2-17 outdoor power equipment, off-road construction equipment, and
2-18 attachments returned by the dealer;
2-19 (2) an amount equal to 85 percent of the current price
2-20 of new, undamaged repair parts returned by the dealer; and
2-21 (3) an amount equal to an additional five percent of
2-22 the current price of new, undamaged repair parts returned by the
2-23 dealer, unless the supplier performs the handling, packing, and
2-24 loading of the parts, in which case no additional amount is
2-25 required under this subdivision.
2-26 SECTION 4. This Act takes effect September 1, 1997, and
2-27 applies only to an agreement entered into on or after that date.
3-1 An agreement entered into before the effective date of this Act is
3-2 governed by the law in effect on the date the agreement was entered
3-3 into, and that law is continued in effect for that purpose.
3-4 SECTION 5. The importance of this legislation and the
3-5 crowded condition of the calendars in both houses create an
3-6 emergency and an imperative public necessity that the
3-7 constitutional rule requiring bills to be read on three several
3-8 days in each house be suspended, and this rule is hereby suspended.