By Swinford                                            H.B. No. 965
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain dealer agreements concerning forestry
 1-3     harvesting and off-road construction equipment.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  The heading to Chapter 19, Business & Commerce
 1-6     Code, is amended to read as follows:
 1-7       CHAPTER 19.  FARM, INDUSTRIAL, OFF-ROAD CONSTRUCTION, FORESTRY
 1-8                   HARVESTING EQUIPMENT, AND OUTDOOR POWER
 1-9                         EQUIPMENT DEALER AGREEMENTS
1-10           SECTION 2.  Section 19.01, Business & Commerce Code, is
1-11     amended by amending Subdivisions (5) and (8) and adding Subdivision
1-12     (12) to read as follows:
1-13                 (5)  "Dealer" means a person in the business of the
1-14     retail sale of equipment.  The term does not include a single line
1-15     dealer primarily engaged in the retail sale and service [person
1-16     whose principal business is the sale] of off-road  construction and
1-17     earth-moving equipment.
1-18                 (8)  "Equipment" means farm tractors, farm implements,
1-19     utility tractors, industrial tractors, forestry harvesting
1-20     equipment, off-road construction equipment, and outdoor power
1-21     equipment and the attachments to or repair parts for those items.
1-22                 (12)  "Single line dealer" means an individual,
1-23     partnership, or corporation who:
1-24                       (A)  has purchased 75 percent or more of the
 2-1     dealer's total new product inventory from a single supplier under
 2-2     all agreements with that supplier; and
 2-3                       (B)  has a total annual average sales volume in
 2-4     excess of $100 million for the preceding three years with that
 2-5     single supplier for the territory for which the dealer is
 2-6     responsible in this state.
 2-7           SECTION 3.  Section 19.43(a), Business & Commerce Code, is
 2-8     amended to read as follows:
 2-9           (a)  If on termination of a dealer agreement the dealer
2-10     delivers to the supplier or a person designated by the supplier the
2-11     inventory that was purchased from the supplier and that is held by
2-12     the dealer on the date of the termination, the supplier shall pay
2-13     to the dealer:
2-14                 (1)  the dealer cost of new, unsold, undamaged, and
2-15     complete farm tractors, farm implements, utility tractors,
2-16     industrial tractors, forklifts, material-handling equipment,
2-17     outdoor power equipment, forestry harvesting equipment, off-road
2-18     construction equipment, and attachments returned by the dealer;
2-19                 (2)  an amount equal to 85 percent of the current price
2-20     of new, undamaged repair parts returned by the dealer; and
2-21                 (3)  an amount equal to an additional five percent of
2-22     the current price of new, undamaged repair parts returned by the
2-23     dealer, unless the supplier performs the handling, packing, and
2-24     loading of the parts, in which case no additional amount is
2-25     required under this subdivision.
2-26           SECTION 4.  This Act takes effect September 1, 1999, and
2-27     applies only to an agreement entered into on or after that date.
 3-1     An agreement entered into before the effective date of this Act is
 3-2     governed by the law in effect on the date the agreement was entered
 3-3     into, and that law is continued in effect for that purpose.
 3-4           SECTION 5.  The importance of this legislation and the
 3-5     crowded condition of the calendars in both houses create an
 3-6     emergency and an imperative public necessity that the
 3-7     constitutional rule requiring bills to be read on three several
 3-8     days in each house be suspended, and this rule is hereby suspended.