78R10941 SMH-D


By:  McReynolds                                                   H.B. No. 2943

Substitute the following for H.B. No. 2943:                                   

By:  Miller                                                   C.S.H.B. No. 2943



A BILL TO BE ENTITLED

AN ACT

relating to agreements between suppliers of and dealers in forestry 
harvesting and certain other equipment.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 19, Business & Commerce 
Code, is amended by adding Section 19.025 to read as follows:
	Sec. 19.025.  ACTIONS AGAINST DEALERS.  Notwithstanding the 
terms of any dealer agreement or any other law, an action or 
proceeding brought by a supplier against a dealer must be brought in 
an appropriate forum in this state only, and the law of this state 
applies to the action or proceeding.
	SECTION 2.  Section 19.41, Business & Commerce Code, is 
amended to read as follows:
	Sec. 19.41.  GOOD CAUSE REQUIRED.  (a)  Notwithstanding the 
terms of the dealer agreement, a [A] supplier may not terminate, 
cancel, or fail to renew a dealer agreement without good cause.  
Whether good cause has been established is determined considering 
all existing circumstances, including:
		(1)  the dealer's sales in relation to the sales in the 
market;      
		(2)  the dealer's investment and obligations;                          
		(3)  injury or benefit to the public;                                  
		(4)  the adequacy of the dealer's service facilities, 
equipment, parts, and personnel in relation to those of other 
dealers of equipment of the same line;
		(5)  whether warranties are being honored by the 
dealer;             
		(6)  the parties' compliance with the dealer agreement, 
except to the extent that the dealer agreement conflicts with this 
chapter; and
		(7)  the enforceability of the dealer agreement from a 
public policy standpoint, including issues of the reasonableness of 
the dealer agreement's terms, oppression, adhesion, and the 
parties' relative bargaining power.
	(b)  The desire of a supplier for market penetration does not 
by itself constitute good cause.
	SECTION 3.  (a)  This Act takes effect immediately if it 
receives a vote of two-thirds of all the members elected to each 
house, as provided by Section 39, Article III, Texas Constitution.  
If this Act does not receive the vote necessary for immediate 
effect, this Act takes effect September 1, 2003.
	(b)  This Act applies to a dealer agreement entered into 
before, on, or after the effective date of this Act.