SRC-DBM H.B. 1066 76(R)    BILL ANALYSIS


Senate Research CenterH.B. 1066
By: Swinford (Duncan)
Economic Development
5/10/1999
Engrossed


DIGEST 

Chapter 1, Business & Commerce Code, was created to provide certain
protections to Texas dealers of agricultural equipment from out of state
manufacturers.  Over the last 15 years, there have been many changes in the
industry and the market.  Some loopholes in the law have been exploited and
some dealers have been required to sell only certain kinds of products.
H.B. 1066 would prohibit suppliers from coercing dealers of certain farm
and industrial equipment. 

PURPOSE

H.B. 1066 prohibits suppliers from coercing dealers of certain farm and
industrial equipment. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subdivision (8), Section 19.01, Business & Commerce
Code, to redefine "equipment" to mean farm tractors, farm implements,
utility tractors, industrial tractors, forklifts, material-handling
equipment, forestry harvesting equipment, and outdoor power equipment and
the attachments to or repair for those items. 

SECTION 2.  Amends Section 19.22, Business Code, as follows:

Sec. 19.22.  New heading:  COERCED ORDERS, DELIVERIES, OR REFUSALS TO
PURCHASE.  Prohibits a supplier from coercing or compelling a dealer to
refuse purchase of equipment manufactured by another equipment
manufacturer. 

SECTION 3.Effective date: September 1, 1999.

SECTION 4.Emergency clause.