Texas 2023 - 88th Regular

Texas Senate Bill SB2195 Compare Versions

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1	1	By: Menéndez S.B. No. 2195
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4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to fair allocation requirements for manufacturers,
7	7	distributers, or manufacturer representatives.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 2301., Occupations Code is amended by adding
10	10	Section 2301.4672 to read as follows:
11	11	Sec. 2301.4672 FAIR ALLOCATION REQUIREMENTS.
12	12	(a) Notwithstanding the terms of any franchise agreement or
13	13	any other law, a manufacturer, distributor, or manufacturer
14	14	representative shall, on a quarterly or any three month period, for
15	15	each line-make, make available an allocation to each motor vehicle
16	16	dealer sufficient numbers of vehicles, by model, to permit each
17	17	motor vehicle dealer to meet any sales standards for that period
18	18	that are required or set by the manufacturer, distributor, or
19	19	manufacturer representative for such dealer, including but not
20	20	limited to any sales measurement or criteria authored by the
21	21	manufacturer and communicated to the dealer that sets a target,
22	22	goal, or expectation of sales to be made by the dealer in the
23	23	dealer's assigned geographic area or area of responsibility.
24	24	(b) A manufacturer, distributor, or manufacturer
25	25	representative may assert a defense to a claim under this section by
26	26	making a showing of good cause for the failure to comply. Good cause
27	27	is demonstrated by establishing with clear and convincing evidence
28	28	that the manufacturer, distributor, or manufacturer representative
29	29	was physically unable to make available an allocation of sufficient
30	30	inventory to the affected dealer due to limited supply available to
31	31	the manufacturer. This defense shall only apply if the
32	32	manufacturer, distributor, or manufacturer representative is also
33	33	able to demonstrate that the limited supply of inventory is borne,
34	34	or has been borne, equally and fairly by all dealers of said
35	35	manufacturer in this State as to the same line-make and model in
36	36	proportion to each dealer's assigned geographic area or area of
37	37	responsibility.
38	38	(c) Given the immediate economic impact on a motor vehicle
39	39	dealer that is not allocated fair and sufficient inventory to
40	40	permit the dealer to meet the manufacturer's sales expectations
41	41	referenced in paragraph (a), on a complaint filed by the dealer
42	42	alleging that a manufacturer, distributor, or manufacturer
43	43	representative has failed to comply with paragraph (a), the
44	44	Department of Motor Vehicles/SOAH shall set the matter for final
45	45	hearing within 60-days of the manufacturer's, distributor's, or
46	46	manufacturer representative's response to the complaint file by
47	47	the complaining dealer.
48	48	(d) A manufacturer's sales standard or measurement referred
49	49	to in subsection (a) is not relevant to the Board's determination
50	50	of "good cause" under §2301.453 of this Chapter.
51	51	(e) On a finding by the Board of a violation of §
52	52	2301.4672(a) or (c) by a manufacturer, the dealer may pursues all
53	53	remedies available and as set forth under Subchapter E, Chapter 17,
54	54	Business & Commerce Code §17.50 in any State Court of competent
55	55	jurisdiction in the county where the dealer is located.
56	56	SECTION 2. This Act takes effect immediately if it receives
57	57	a vote of two-thirds of all the members elected to each house, as
58	58	provided by Section 39, Article III, Texas Constitution. If this
59	59	Act does not receive the vote necessary for immediate effect, this
60	60	Act takes effect September 1, 2023.