Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Janek                                        H.B. No. 2240

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to boats and outboard motors.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Amend Section 3(d), Chapter 479, Acts of the 72nd

 1-5     Legislature, Regular Session, 1991 (Article 8911, Vernon's Texas

 1-6     Civil Statutes), as follows:

 1-7           (d)  In this section, "good cause" means good cause in the

 1-8     public interest for a termination or noncontinuance upon balancing

 1-9     all existing circumstances including, without limitation, the

1-10     following: the dealer's sales in relation to the sales in the

1-11     market, the dealer's investment, capital and obligations, injury to

1-12     the public welfare, adequacy of the dealer's service facilities,

1-13     equipment, parts and personnel compared to other dealer's of the

1-14     same line make, whether warranties are being honored by the dealer,

1-15     compliance with the dealer agreement and enforceability of the

1-16     dealer agreement from a public policy standpoint, including without

1-17     limitation, issues of the reasonableness of the agreement's terms,

1-18     oppression, adhesion and the relative bargaining power of the

1-19     parties.  Good cause shall not be shown solely by the desire of the

1-20     manufacturer for market penetration or the fact that the dealer

1-21     holds an agreement involving another line, make or brand of new

1-22     boat or outboard motor. [does not include the fact that a dealer

1-23     holds a dealer agreement involving another line, make, or brand of

1-24     new boat or new outboard motor.  Good cause is not required in the

 2-1     case of nonrenewal of a dealer agreement except for an agreement

 2-2     for which the original term of the agreement is for a period of

 2-3     less than one year.]

 2-4           SECTION 2.  The importance of this legislation and the

 2-5     crowded condition of the calendars in both houses create an

 2-6     emergency and an imperative public necessity that the

 2-7     constitutional rule requiring bills to be read on three several

 2-8     days in each house be suspended, and this rule is hereby suspended.