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.