Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Lewis of Orange H.B. No. 2037
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to discontinuing boat and outboard motor franchise
1-3 agreements.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Amend Section 3(d), Chapter 479, Acts of the 72nd
1-6 Legislature, Regular Session, 1991 (Article 8911, Vernon's Texas
1-7 Civil Statutes), to read as follows:
1-8 (d)(1) A manufacturer or distributor may not refuse to
1-9 continue any agreement unless all of the following conditions are
1-10 met:
1-11 (i) the manufacturer or distributor has
1-12 given the dealer written notice of noncontinuance setting forth the
1-13 specific grounds for the noncontinuance of the agreement;
1-14 (ii) the dealer has been given the
1-15 opportunity to exert good faith efforts to cure the grounds listed
1-16 in the notice for 60 days following receipt of the notice in
1-17 Subdivision (i) above;
1-18 (iii) the manufacturer or distributor has
1-19 negotiated with the dealer in good faith during a period of 60 days
1-20 following the period provided in Subdivision (ii) above; and
1-21 (iv) the manufacturer or distributor has
1-22 given the dealer and the Commission written notice that the causes
1-23 have not been cured by actions of the dealer, specifying the
1-24 remaining grounds not cured, and that the agreement will be not
2-1 continued on a date not less than 90 days after receipt of the
2-2 notice. The notice must be sent by registered or certified mail
2-3 and contain the following statement on the first page "YOU MAY BE
2-4 ENTITLED TO PROTEST THIS ACTION TO THE TEXAS PARKS AND WILDLIFE
2-5 COMMISSION IF YOU OPPOSE IT".
2-6 (2) If the affected dealer files a protest with the
2-7 Commission within 75 days after receiving the notice given in
2-8 Subsection (d)(iv) above and pays a $250 fee, the Commission shall
2-9 designate an arbitrator to determine whether the manufacturer or
2-10 distributor has established by a preponderance of the evidence at a
2-11 hearing held by the arbitrator that there is good cause for the
2-12 proposed noncontinuance. The arbitrator shall be a resident of
2-13 this state and licensed to practice law in this state and have no
2-14 interest in the outcome of the proceeding. The Commission shall
2-15 make the appointment within 15 days after receipt of the protest.
2-16 The arbitration shall be conducted in the following 75 days
2-17 pursuant to Section 1781.001 of Civil Practices and Remedies Code
2-18 following the rules of evidence called for in Section 2001.081 of
2-19 the Government Code. The parties shall share equally the cost of
2-20 the arbitrator and of the proceeding. Each party shall pay for its
2-21 own attorneys and experts. The parties shall be bound by the
2-22 decision of the arbitrator without an appeal. If the arbitrator
2-23 determines that there is good cause for noncontinuance, the
2-24 agreement will expire at the end of its term as extended by the
2-25 above steps. If the arbitrator determines that there is not good
2-26 cause for the noncontinuance, the agreement shall be renewed at the
2-27 end of its term as extended by the above steps for the same term as
2-28 the prior agreement.
2-29 (3) In this section, "good cause" does not include the
2-30 fact that a dealer holds a dealer agreement involving another line,
3-1 make, or brand of new boat or new outboard motor. [Good cause is
3-2 not required in the case of nonrenewal of a dealer agreement except
3-3 for an agreement for which the original term of the agreement is
3-4 for a period of less than one year.]
3-5 SECTION 2. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended.