By Swinford                                            H.B. No. 965
         76R3877 WP-F                           
                                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 to Chapter 19, Business & Commerce
 1-6     Code, is amended to read as follows:
 1-7          CHAPTER 19.  FARM, INDUSTRIAL, OFF-ROAD CONSTRUCTION, AND
 1-8                  OUTDOOR POWER EQUIPMENT DEALER AGREEMENTS
 1-9           SECTION 2.  Section 19.01, Business & Commerce Code, is
1-10     amended by amending Subdivisions (5) and (8) and adding Subdivision
1-11     (12) to read as follows:
1-12                 (5)  "Dealer" means a person in the business of the
1-13     retail sale of equipment.  The term does not include a single line
1-14     dealer primarily engaged in the retail sale and service [person
1-15     whose principal business is the sale] of off-road  construction and
1-16     earth-moving equipment.
1-17                 (8)  "Equipment" means farm tractors, farm implements,
1-18     utility tractors, industrial tractors, off-road construction
1-19     equipment, and outdoor power equipment and the attachments to or
1-20     repair parts for those items.
1-21                 (12)  "Single line dealer" means an individual,
1-22     partnership, or corporation who:
1-23                       (A)  has purchased 75 percent or more of the
1-24     dealer's total new product inventory from a single supplier under
 2-1     all agreements with that supplier; and
 2-2                       (B)  has a total annual average sales volume in
 2-3     excess of $100 million for the preceding three years with that
 2-4     single supplier for the territory for which the dealer is
 2-5     responsible in this state.
 2-6           SECTION 3.  Section 19.43(a), Business & Commerce Code, is
 2-7     amended to read as follows:
 2-8           (a)  If on termination of a dealer agreement the dealer
 2-9     delivers to the supplier or a person designated by the supplier the
2-10     inventory that was purchased from the supplier and that is held by
2-11     the dealer on the date of the termination, the supplier shall pay
2-12     to the dealer:
2-13                 (1)  the dealer cost of new, unsold, undamaged, and
2-14     complete farm tractors, farm implements, utility tractors,
2-15     industrial tractors, forklifts, material-handling equipment,
2-16     outdoor power equipment, off-road construction equipment, and
2-17     attachments returned by the dealer;
2-18                 (2)  an amount equal to 85 percent of the current price
2-19     of new, undamaged repair parts returned by the dealer; and
2-20                 (3)  an amount equal to an additional five percent of
2-21     the current price of new, undamaged repair parts returned by the
2-22     dealer, unless the supplier performs the handling, packing, and
2-23     loading of the parts, in which case no additional amount is
2-24     required under this subdivision.
2-25           SECTION 4.  This Act takes effect September 1, 1999, and
2-26     applies only to an agreement entered into on or after that date.
2-27     An agreement entered into before the effective date of this Act is
 3-1     governed by the law in effect on the date the agreement was entered
 3-2     into, and that law is continued in effect for that purpose.
 3-3           SECTION 5.  The importance of this legislation and the
 3-4     crowded condition of the calendars in both houses create an
 3-5     emergency and an imperative public necessity that the
 3-6     constitutional rule requiring bills to be read on three several
 3-7     days in each house be suspended, and this rule is hereby suspended.