Texas House Bill HB4395

Texas 2009 - 81st Regular

• Out of House Committee: 4/21/09

Caption

Relating to the regulation of boat manufacturers, distributors, and dealers; providing a civil penalty.

Impact

If enacted, HB4395 would amend various sections of the Occupations Code, thereby impacting how boat dealers operate within the state. The changes would mandate that manufacturers and distributors uphold better practices regarding warranty service payments and obligate them to repurchase unsold, undamaged inventory from dealers if agreements are terminated. Furthermore, the bill would also introduce strict licensing requirements for dealers, distributors, and manufacturers, thereby enhancing regulation within the boating industry.

Summary

House Bill 4395 seeks to establish comprehensive regulations governing the relationships between boat manufacturers, distributors, and dealers in Texas. It includes provisions aimed at ensuring fair practices regarding dealer agreements, warranty payments, and the repurchase of products upon termination of agreements. The bill emphasizes transparency and accountability among parties involved in the boating industry while providing clear guidelines for compensation for warranty work and the conditions under which agreements can be terminated or not renewed.

Contention

While the bill is meant to protect dealers and ensure fair business practices, there may be concerns regarding the degree of regulatory oversight it introduces. Stakeholders may have differing opinions on the balance between protecting dealers and allowing manufacturers and distributors the flexibility they need to operate efficiently. Critics of stringent regulations might argue that such rules could result in increased operational costs for manufacturers, potentially leading to higher prices for end consumers.