By: Deshotel H.B. No. 4395
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to dealer agreements and other business requirements for
  boat dealers, distributors, and manufacturers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2352.001(8), Occupations Code, is
  Amended to read as follows:
         Sec. 2352.001.  DEFINITIONS.  In this chapter:
               (8)  "Outboard motor" has the meaning assigned by
  Section 31.003, Parks and Wildlife Code, and includes stern drives,
  direct drives, v-drives, and other mechanical forms of marine
  propulsion.
         SECTION 2.  Section 2352.052(c), Occupations Code, is
  Amended to read as follows:
         Sec. 2352.052.  TERMS OF AGREEMENT.
         (c)  The dealer's territory must provide for an exclusive a
  sales area of at least a 50 mile radius from the dealer location.
         SECTION 3.  Section 2352.053(b), Occupations Code, is
  amended to read as follows:
         Sec. 2352.053.  TERMINATION OR NONRENEWAL OF AGREEMENT;
  NOTICE.
         (b)  Good cause is [not] required for the nonrenewal of an
  agreement [other than an agreement having an original term of less
  than one year].
         SECTION 4.  Section 2352.105(b), (c), and (d), Occupations
  Code, are amended to read as follows:
         Sec. 2352.105.  COMPENSATION FOR WARRANTY SERVICE.
         (b)  A [Except as provided by Subsection (c), a] manufacturer
  or distributor may not pay a dealer a labor rate for warranty work
  that is less than the rate the dealer charges retail customers for
  nonwarranty work of the same kind by similar technicians.
         (c)  [A manufacturer or distributor who has a warranty
  program that reimburses a dealer at 100 percent of the dealer's
  retail labor rate if the dealer complies with reasonable and
  objective criteria shall pay the dealer the labor rate provided by
  the terms of the program or a rate equal to 80 percent of the
  dealer's retail labor rate, whichever rate is higher.
         (d)]  A manufacturer or distributor shall approve or
  disapprove a dealer's claim for warranty work within a reasonable
  time. If the claim is approved, the manufacturer or distributor
  shall pay the claim within a reasonable time. If the claim is
  disapproved, the manufacturer or distributor shall notify the
  dealer of the grounds for disapproval.
         SECTION 5.  Section 2352.107(a) and (b), Occupations Code,
  are amended to read as follows:
         Sec. 2352.107.  REPURCHASE BY MANUFACTURER OR DISTRIBUTOR.
         (a)  A manufacturer or distributor who terminates an
  agreement shall repurchase on demand from the dealer any of the
  following items, purchased by the dealer from the manufacturer or
  distributor, that are free and clear of a lien or encumbrance:
               (1)  a new, unsold, retailable, undamaged, and complete
  boat, with accessories and packaged trailers sold with the boat,
  and any outboard motor that:
                     (A)  is in the dealer's inventory; and
                     (B)  was purchased within two years [one year]
  preceding the date of the termination; and any new, current,
  unsold, undamaged, and unused parts or accessories for boats or
  outboard motors in the original resalable merchandising package.
         (b)  A demand for repurchase must be made in writing not
  later than the 90th [30th] day after the date the manufacturer or
  distributor terminates the agreement. The dealer must provide the
  manufacturer or distributor with a complete list of the items to be
  repurchased. The manufacturer or distributor shall complete the
  repurchase within a reasonable time.
         SECTION 6.  Chapter 2352, Occupations Code, is amended by
  adding Sections 2352.108 and 2352.2011 to read as follows:
         Sec. 2352.108.  DEALER'S, DISTRIBUTOR'S, AND MANUFACTURER'S
  LICENSE.  A person may not engage in business in this state as a
  dealer, distributor, or manufacturer unless the person holds a
  license and enters into a license agreement as required by Section
  31.041, Parks and Wildlife Code.
         Sec. 2352.2011.  STATE PENALTY.  A person who violates
  Section 2352.108 or otherwise is not in compliance with this
  chapter is liable to the State in the amount of $500 per new boat or
  new outboard motor numbered or attempted to be numbered pursuant to
  Chapter 37, Parks and Wildlife Code.
         SECTION 7.  This Act takes effect September 1, 2009.