Texas Senate Bill SB1315

Texas 2011 - 82nd Regular

• Introduced: 3/8/11

Caption

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

Impact

If passed, SB1315 would have significant implications on the operations of boat dealers by instituting rules that govern dealer agreements, including length and conditions of the agreement, performance standards, and requirements for financial transparency. The bill's provisions would ensure manufacturers are accountable for timely repurchase of unsold inventory when agreements are terminated, offering a degree of financial protection to dealers. Furthermore, it introduces civil penalties for manufacturers or distributors that violate these provisions, with fines up to $500 per violation, thereby promoting compliance with Texas regulatory standards.

Summary

SB1315 seeks to regulate the relationships between boat manufacturers, distributors, and dealers in Texas by establishing requirements for sales agreements and outlining the circumstances under which such agreements may be terminated. The bill mandates that manufacturers or distributors can only sell new boats or outboard motors to dealers with a formal agreement in place, which must comply with specified criteria. This legislation aims to better protect dealers from arbitrary termination of agreements and to provide a clear framework for repurchase of inventory when an agreement is terminated or not renewed.

Sentiment

The introduction of SB1315 has garnered mixed reactions among stakeholders. Supporters, particularly smaller dealers, express sentiments of relief as the legislation could bolster their security by ensuring that manufacturers cannot terminate agreements without just cause. On the other hand, some manufacturers are concerned that the bill may impose undue restrictions on their operational flexibility. The debate reflects broader tensions in the industry regarding the balance of power between dealers and manufacturers.

Contention

Notable points of contention include the specifics of dealer protections against termination of their agreements and the implications of civil penalties for non-compliance. Opponents of the bill argue that while protections for dealers are necessary, overly stringent regulations could hinder manufacturers' ability to adapt and respond to market changes. The clarity provided in dispute resolution processes and the stipulations for repurchase of inventory also lie at the heart of discussions, revealing differing views on the best methods to ensure fairness in the operational landscape of boat sales.