1-1 By: Swinford (Senate Sponsor - Duncan) H.B. No. 965
1-2 (In the Senate - Received from the House April 6, 1999;
1-3 April 7, 1999, read first time and referred to Committee on
1-4 Economic Development; May 13, 1999, reported favorably by the
1-5 following vote: Yeas 7, Nays 0; May 13, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to certain dealer agreements concerning forestry
1-9 harvesting and off-road construction equipment.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. The heading to Chapter 19, Business & Commerce
1-12 Code, is amended to read as follows:
1-13 CHAPTER 19. FARM, INDUSTRIAL, OFF-ROAD CONSTRUCTION, FORESTRY
1-14 HARVESTING EQUIPMENT, AND OUTDOOR POWER
1-15 EQUIPMENT DEALER AGREEMENTS
1-16 SECTION 2. Section 19.01, Business & Commerce Code, is
1-17 amended by amending Subdivisions (5) and (8) and adding Subdivision
1-18 (12) to read as follows:
1-19 (5) "Dealer" means a person in the business of the
1-20 retail sale of equipment. The term does not include a single line
1-21 dealer primarily engaged in the retail sale and service [person
1-22 whose principal business is the sale] of off-road construction and
1-23 earth-moving equipment.
1-24 (8) "Equipment" means farm tractors, farm implements,
1-25 utility tractors, industrial tractors, forestry harvesting
1-26 equipment, off-road construction equipment, and outdoor power
1-27 equipment and the attachments to or repair parts for those items.
1-28 (12) "Single line dealer" means an individual,
1-29 partnership, or corporation who:
1-30 (A) has purchased 75 percent or more of the
1-31 dealer's total new product inventory from a single supplier under
1-32 all agreements with that supplier; and
1-33 (B) has a total annual average sales volume in
1-34 excess of $100 million for the preceding three years with that
1-35 single supplier for the territory for which the dealer is
1-36 responsible in this state.
1-37 SECTION 3. Section 19.43(a), Business & Commerce Code, is
1-38 amended to read as follows:
1-39 (a) If on termination of a dealer agreement the dealer
1-40 delivers to the supplier or a person designated by the supplier the
1-41 inventory that was purchased from the supplier and that is held by
1-42 the dealer on the date of the termination, the supplier shall pay
1-43 to the dealer:
1-44 (1) the dealer cost of new, unsold, undamaged, and
1-45 complete farm tractors, farm implements, utility tractors,
1-46 industrial tractors, forklifts, material-handling equipment,
1-47 outdoor power equipment, forestry harvesting equipment, off-road
1-48 construction equipment, and attachments returned by the dealer;
1-49 (2) an amount equal to 85 percent of the current price
1-50 of new, undamaged repair parts returned by the dealer; and
1-51 (3) an amount equal to an additional five percent of
1-52 the current price of new, undamaged repair parts returned by the
1-53 dealer, unless the supplier performs the handling, packing, and
1-54 loading of the parts, in which case no additional amount is
1-55 required under this subdivision.
1-56 SECTION 4. This Act takes effect September 1, 1999, and
1-57 applies only to an agreement entered into on or after that date.
1-58 An agreement entered into before the effective date of this Act is
1-59 governed by the law in effect on the date the agreement was entered
1-60 into, and that law is continued in effect for that purpose.
1-61 SECTION 5. The importance of this legislation and the
1-62 crowded condition of the calendars in both houses create an
1-63 emergency and an imperative public necessity that the
1-64 constitutional rule requiring bills to be read on three several
2-1 days in each house be suspended, and this rule is hereby suspended.
2-2 * * * * *