Texas House Bill HB1960

Texas 2011 - 82nd Regular

• Introduced: 3/1/11
• Out of House Committee: 4/5/11
• Voted on by House: 5/6/11
• Refer: 3/10/11
• Out of Senate Committee: 5/19/11
• Report Pass: 3/30/11
• Voted on by Senate: 5/25/11
• Engrossed: 5/6/11
• Governor Action: 6/17/11
• Refer: 5/13/11
• Report Pass: 5/19/11
• Enrolled: 5/29/11
• Passed: 6/17/11

Caption

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

Impact

One of the significant impacts of HB 1960 is the introduction of civil penalties for manufacturers and distributors who do not follow the regulatory framework established by the bill. This includes a potential fine of up to $500 for each violation, which could serve as a deterrent against non-compliance. The bill also requires manufacturers to repurchase inventory from dealers upon termination of agreements under specific conditions, providing additional security for dealers against unsold stock. Overall, these provisions are designed to create a more equitable trading environment between manufacturers and dealers in the boating industry.

Summary

House Bill 1960 is centered around the regulation of boat manufacturers, distributors, and dealers in Texas. It aims to set forth clear guidelines for the agreements made between these parties, including establishing the terms under which boats and boat motors can be sold. The bill emphasizes the requirement for manufacturers and dealers to enter into written agreements that adhere to specified performance standards and marketing practices. Failure to comply with these standards may lead to civil penalties, as outlined in the legislation, which aims to enforce compliance and ensure fairness within the industry.

Contention

Notable points of contention surrounding HB 1960 involve the balance of power between boat manufacturers and dealers. Some dealers have raised concerns that the bill may overly favor manufacturer interests, particularly in terms of performance standards and territory rights. For example, while the bill allows manufacturers to set performance standards, dealers argue that this could lead to unrealistic expectations that do not account for market variations. Additionally, the ability for manufacturers to appoint other dealers in a designated territory could potentially undermine established dealer relationships, creating competitive hurdles that smaller dealers may struggle to overcome.