RBT C.S.H.B. 1066 76(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1066
By: Swinford
Business & Industry
3/16/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Chapter 1, 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.  Some loopholes in the law have been exploited and
some dealers have been required to sell only certain kinds of products.
C.S.H.B. 1066 changes the definition of "equipment" to include forklifts
and material-handling 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 and material-handling 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.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute, in SECTION 1, removes off-road construction equipment from
the items added by the original to the definition of equipment.