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A BILL TO BE ENTITLED
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AN ACT
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relating to dealer agreements and other business requirements for |
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boat dealers, distributors, and manufacturers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2352.001(8), Occupations Code, is |
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Amended to read as follows: |
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Sec. 2352.001. DEFINITIONS. In this chapter: |
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(8) "Outboard motor" has the meaning assigned by |
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Section 31.003, Parks and Wildlife Code, and includes stern drives, |
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direct drives, v-drives, and other mechanical forms of marine |
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propulsion. |
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SECTION 2. Section 2352.052(c), Occupations Code, is |
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Amended to read as follows: |
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Sec. 2352.052. TERMS OF AGREEMENT. |
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(c) The dealer's territory must provide for an exclusive a |
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sales area of at least a 50 mile radius from the dealer location. |
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SECTION 3. Section 2352.053(b), Occupations Code, is |
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amended to read as follows: |
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Sec. 2352.053. TERMINATION OR NONRENEWAL OF AGREEMENT; |
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NOTICE. |
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(b) Good cause is [not] required for the nonrenewal of an |
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agreement [other than an agreement having an original term of less
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than one year]. |
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SECTION 4. Section 2352.105(b), (c), and (d), Occupations |
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Code, are amended to read as follows: |
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Sec. 2352.105. COMPENSATION FOR WARRANTY SERVICE. |
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(b) A [Except as provided by Subsection (c), a] manufacturer |
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or distributor may not pay a dealer a labor rate for warranty work |
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that is less than the rate the dealer charges retail customers for |
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nonwarranty work of the same kind by similar technicians. |
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(c) [A manufacturer or distributor who has a warranty
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program that reimburses a dealer at 100 percent of the dealer's
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retail labor rate if the dealer complies with reasonable and
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objective criteria shall pay the dealer the labor rate provided by
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the terms of the program or a rate equal to 80 percent of the
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dealer's retail labor rate, whichever rate is higher.
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(d)] A manufacturer or distributor shall approve or |
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disapprove a dealer's claim for warranty work within a reasonable |
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time. If the claim is approved, the manufacturer or distributor |
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shall pay the claim within a reasonable time. If the claim is |
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disapproved, the manufacturer or distributor shall notify the |
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dealer of the grounds for disapproval. |
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SECTION 5. Section 2352.107(a) and (b), Occupations Code, |
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are amended to read as follows: |
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Sec. 2352.107. REPURCHASE BY MANUFACTURER OR DISTRIBUTOR. |
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(a) A manufacturer or distributor who terminates an |
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agreement shall repurchase on demand from the dealer any of the |
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following items, purchased by the dealer from the manufacturer or |
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distributor, that are free and clear of a lien or encumbrance: |
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(1) a new, unsold, retailable, undamaged, and complete |
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boat, with accessories and packaged trailers sold with the boat, |
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and any outboard motor that: |
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(A) is in the dealer's inventory; and |
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(B) was purchased within two years [one year] |
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preceding the date of the termination; and any new, current, |
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unsold, undamaged, and unused parts or accessories for boats or |
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outboard motors in the original resalable merchandising package. |
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(b) A demand for repurchase must be made in writing not |
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later than the 90th [30th] day after the date the manufacturer or |
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distributor terminates the agreement. The dealer must provide the |
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manufacturer or distributor with a complete list of the items to be |
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repurchased. The manufacturer or distributor shall complete the |
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repurchase within a reasonable time. |
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SECTION 6. Chapter 2352, Occupations Code, is amended by |
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adding Sections 2352.108 and 2352.2011 to read as follows: |
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Sec. 2352.108. DEALER'S, DISTRIBUTOR'S, AND MANUFACTURER'S |
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LICENSE. A person may not engage in business in this state as a |
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dealer, distributor, or manufacturer unless the person holds a |
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license and enters into a license agreement as required by Section |
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31.041, Parks and Wildlife Code. |
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Sec. 2352.2011. STATE PENALTY. A person who violates |
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Section 2352.108 or otherwise is not in compliance with this |
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chapter is liable to the State in the amount of $500 per new boat or |
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new outboard motor numbered or attempted to be numbered pursuant to |
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Chapter 37, Parks and Wildlife Code. |
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SECTION 7. This Act takes effect September 1, 2009. |