HBA-RBT, ATS H.B. 1066 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1066 By: Swinford Business & Industry 6/3/1999 Enrolled BACKGROUND AND PURPOSE Chapter 19 (Farm, Industrial, and Outdoor Power Equipment Dealer Agreements), Business & Commerce Code, was created to provide certain protections to Texas dealers of agricultural equipment from out of state manufacturers. Over the last 15 years, there have been many changes in the industry and the market. Prior to the 76th Legislature, some loopholes in the law had been exploited and some dealers had been required to sell only certain kinds of products. H.B. 1066 changes the definition of "equipment" to include forklifts, material-handling equipment, and forestry harvesting equipment. This bill also prohibits a manufacturer from coercing a dealer into refusing purchase of another manufacturer's equipment. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 19.01(8), Business & Commerce Code, to include forklifts, materialhandling equipment, and forestry harvesting equipment in the definition of "equipment." SECTION 2. Amends Section 19.22, Business & Commerce Code, as follows: Sec. 19.22. New title: COERCED ORDERS, DELIVERIES, OR REFUSALS TO PURCHASE. Creates Subsection (a) from existing text. Prohibits a supplier from coercing or compelling a dealer to refuse to purchase equipment manufactured by another equipment manufacturer. SECTION 3. Effective date: September 1, 1999. SECTION 4. Emergency clause.