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.