Texas House Bill HB3404

Texas 2017 - 85th Regular

Caption

Relating to the regulation and sale of certain trailers, including cargo and livestock trailers, and cargo and livestock trailers with living quarters.

Impact

The bill impacts state laws governing the sale and distribution of cargo and livestock trailers by requiring formal agreements between manufacturers, distributors, and dealers. These agreements must delineate territory, obligations, and provisions for termination or nonrenewal. This framework is intended to protect dealers by ensuring they are compensated fairly for warranty services and that they can sell trailers within their designated territories without competition from unauthorized dealers in the same area. Furthermore, it addresses liability issues associated with violations of the agreements, thereby offering a layer of legal protection for all parties involved.

Summary

House Bill 3404 relates to the regulation and sale of certain trailers, specifically cargo and livestock trailers, including those with living quarters. The legislation introduces new provisions under Chapter 2301 of the Occupations Code, adding a subchapter that defines key terms, establishes the need for agreements between manufacturers or distributors and dealers, and outlines specific obligations for each party involved in the sale of such trailers. The bill aims to ensure that business practices in the trailer industry are standardized and regulated effectively.

Contention

Notable points of contention may arise from the potential administrative burden placed on smaller dealers who might struggle to comply with the detailed agreement requirements and obligations outlined in the bill. Critics may argue that while the bill aims to protect the interests of the trailer sales industry, it could inadvertently limit market entry for smaller manufacturers and dealers due to the complexities involved in agreements and territorial definitions. Furthermore, concerns about the effectiveness of enforcement measures against violations might lead to debates regarding the fairness and economic feasibility of the bill's potential impacts on the broader market.