By Swinford                                      H.B. No. 533

      75R3521 BEM-D                           

                                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.  Sections 19.01(5) and (8), Business & Commerce

1-10     Code, are amended to read as follows:

1-11                 (5)  "Dealer" means a person in the business of the

1-12     retail sale of equipment.  [The term does not include a person

1-13     whose principal business is the sale of off-road construction

1-14     equipment.]

1-15                 (8)  "Equipment" means farm tractors, farm implements,

1-16     utility tractors, industrial tractors, off-road construction

1-17     equipment, and outdoor power equipment and the attachments to or

1-18     repair parts for those items.

1-19           SECTION 3.  Section 19.43(a), Business & Commerce Code, is

1-20     amended to read as follows:

1-21           (a)  If on termination of a dealer agreement the dealer

1-22     delivers to the supplier or a person designated by the supplier the

1-23     inventory that was purchased from the supplier and that is held by

1-24     the dealer on the date of the termination, the supplier shall pay

 2-1     to the dealer:

 2-2                 (1)  the dealer cost of new, unsold, undamaged, and

 2-3     complete farm tractors, farm implements, utility tractors,

 2-4     industrial tractors, forklifts, material-handling equipment,

 2-5     outdoor power equipment, off-road construction equipment, and

 2-6     attachments returned by the dealer;

 2-7                 (2)  an amount equal to 85 percent of the current price

 2-8     of new, undamaged repair parts returned by the dealer; and

 2-9                 (3)  an amount equal to an additional five percent of

2-10     the current price of new, undamaged repair parts returned by the

2-11     dealer, unless the supplier performs the handling, packing, and

2-12     loading of the parts, in which case no additional amount is

2-13     required under this subdivision.

2-14           SECTION 4.  This Act takes effect September 1, 1997, and

2-15     applies only to an agreement entered into on or after that date.

2-16     An agreement entered into before the effective date of this Act is

2-17     governed by the law in effect on the date the agreement was entered

2-18     into, and that law is continued in effect for that purpose.

2-19           SECTION 5.  The importance of this legislation and the

2-20     crowded condition of the calendars in both houses create an

2-21     emergency and an imperative public necessity that the

2-22     constitutional rule requiring bills to be read on three several

2-23     days in each house be suspended, and this rule is hereby suspended.