C.S.H.B. 78 78(1)    BILL ANALYSIS


C.S.H.B. 78
By: McReynolds
Agriculture & Livestock
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Chapter 19, of the Business & Commerce Code, addresses dealer agreements
with suppliers (manufacturers, assemblers, or wholesalers) of farm,
industrial, off-road construction, forestry harvesting equipment, and
outdoor power equipment.  Texas dealers frequently find themselves in
contract arrangements which require that suits between  suppliers and
dealers be tried in a state other than Texas, most frequently in which the
supplier resides.  This often puts Texas dealers at a disadvantage.
C.S.H.B. 78 requires that an action or proceeding brought by a supplier
against a Texas dealer must be brought in an appropriate court in this
state.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

C.S.H.B. 78 amends Chapter 19, Business & Commerce Code, to require
actions or proceedings brought by a supplier to a dealer agreement against
a dealer to be brought in an appropriate  forum in this state and  that
the law of this state applies to the action or proceeding. 

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect on the 91st day after the last day of the legislative
session. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

The original states that an action brought by a "party" to a dealer must
occur in Texas. The substitute version replaces the word "party" with the
word "supplier".