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.