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.