Bill Text: TX HB3404 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the regulation and sale of certain trailers, including cargo and livestock trailers, and cargo and livestock trailers with living quarters.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-04-24 - Left pending in committee [HB3404 Detail]
Download: Texas-2017-HB3404-Introduced.html
By: Kuempel | H.B. No. 3404 |
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relating to the regulation and sale of certain trailers, including | ||
cargo and livestock trailers, and cargo and livestock trailers with | ||
living quarters. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 2301, Occupations Code, is amended by | ||
adding Subchapter S to read as follows: | ||
SUBCHAPTER S. MANUFACTURERS, DISTRIBUTORS, AND DEALERS OF CARGO OR | ||
LIVESTOCK TRAILERS OR CARGO OR LIVESTOCK TRAILERS WITH LIVING | ||
QUARTERS | ||
Sec. 2301.901. DEFINITIONS. Notwithstanding Sections | ||
2301.002(7) and (19), in this subchapter: | ||
(1) "Agreement" means a written agreement between a | ||
manufacturer or distributor and a dealer for the purchase and sale | ||
of new cargo or livestock trailers, and cargo or livestock trailers | ||
with living quarters. | ||
(2) "Dealer" means a person engaged in the business of | ||
buying, selling, selling on consignment, displaying for sale, or | ||
exchanging at least five cargo or livestock trailers or cargo or | ||
livestock trailers with living quarters in a calendar year. | ||
(3) "Cargo or livestock trailer, and cargo or | ||
livestock trailer with living quarters" means a towable | ||
recreational vehicle that is also designed, constructed, or used to | ||
transport animals or cargo. | ||
(4) "Manufacturer" means a person or entity engaged in | ||
the business of manufacturing cargo or livestock trailers and cargo | ||
or livestock trailers with living quarters for the purpose of sale | ||
or trade. | ||
(5) "Territory" means: | ||
(A) for the sale of a manufacturer's cargo or | ||
livestock trailer and cargo or livestock trailers with living | ||
quarters, a defined geographical area within which a dealer is | ||
appointed by the manufacturer as the sole authorized dealer; or | ||
(B) for the sale of all other manufacturer | ||
products, a market area within which a dealer is appointed by the | ||
manufacturer as an authorized dealer. | ||
Sec. 2301.902. AGREEMENT REQUIRED. A manufacturer or | ||
distributor contracting with a dealer may not sell or offer for | ||
sale, and a dealer may not purchase or offer to purchase, a new | ||
cargo or livestock trailer or a cargo or livestock trailer with | ||
living quarters unless the manufacturer or distributor and the | ||
dealer enter into an agreement that complies with this subchapter. | ||
Sec. 2301.903. TERMS OF AGREEMENT. (a) An agreement under | ||
this subchapter must include: | ||
(1) the dealer's defined territory and permitted | ||
dealership locations; | ||
(2) the length of the agreement, which may not be less | ||
than two years; | ||
(3) provisions for termination or nonrenewal of the | ||
agreement; | ||
(4) the obligations of the manufacturer, distributor, | ||
and dealer in the preparation and delivery of and warranty service | ||
on new cargo or livestock trailers and cargo or livestock trailers | ||
with living quarters; and | ||
(5) the obligations of the manufacturer, distributor, | ||
and dealer on termination of the agreement, including with respect | ||
to unsold inventory of new cargo or livestock trailers and cargo or | ||
livestock trailers with living quarters. | ||
(b) Notwithstanding Subsection (a)(2), an initial agreement | ||
between a manufacturer or distributor and a dealer may not have a | ||
term of less than two years. An extension or renewal of the initial | ||
agreement or a subsequent agreement under this subchapter between | ||
the same manufacturer or distributor and dealer must be for a term | ||
of two or more years. | ||
Sec. 2301.904. DEALER TERRITORY. (a) A dealer agreement | ||
must describe a dealer's territory in terms of: | ||
(1) a radius measured in miles from the dealer's place | ||
of business; or | ||
(2) identification of one or more counties in this | ||
state. | ||
(b) During the term of an agreement, a manufacturer may not | ||
appoint another authorized dealer for the sale of the | ||
manufacturer's cargo or livestock trailers and cargo or livestock | ||
trailers with living quarters in a dealer's territory. | ||
(c) Except for purposes of advertising without an | ||
advertised price or with a manufacturer's suggested retail price, a | ||
dealer may not advertise or promote the sale of the manufacturer's | ||
cargo or livestock trailers, and cargo or livestock trailers with | ||
living quarters outside the dealer's territory, including through | ||
the Internet. | ||
(d) A dealer may not use a broker or dealer in another | ||
dealer's territory to sell a manufacturer's cargo or livestock | ||
trailers and cargo or livestock trailer's with living quarters. | ||
(e) This subchapter does not prohibit a dealer from selling | ||
a cargo or livestock trailer and cargo or livestock trailers with | ||
living quarters to a customer residing outside of the dealer's | ||
territory who independently visits the dealership and seeks to | ||
purchase a cargo or livestock trailer and cargo or livestock | ||
trailer with living quarters from the dealer. | ||
Sec. 2301.905. COMPENSATION FOR WARRANTY SERVICE. (a) A | ||
manufacturer or distributor shall fairly compensate a dealer for | ||
the work and services the dealer performs and for expenses the | ||
dealer incurs to comply with a manufacturer's or distributor's | ||
warranty. | ||
(b) Except as provided by Subsection (c), a manufacturer or | ||
distributor may not pay a dealer a labor rate for warranty work that | ||
is less than the rate the dealer charges retail customers for | ||
nonwarranty work of the same kind by similar technicians. | ||
(c) A manufacturer or distributor who has a warranty program | ||
shall reimburses a dealer at 100 percent of the dealer's retail | ||
labor rate if the dealer complies with reasonable and objective | ||
criteria | ||
(d) A manufacturer or distributor shall approve or deny a | ||
dealer's written claim for warranty work not later than the second | ||
business day after the date of receipt of the claim. If the claim is | ||
approved, the manufacturer or distributor shall pay the claim not | ||
later than the 30th day after the date of receipt of the dealer's | ||
written invoice or written proof of completion of the warranty | ||
work. If the claim is denied, the manufacturer or distributor shall | ||
notify the dealer of the grounds for denial. | ||
(e) A manufacturer or distributor may not audit a claim | ||
filed for warranty work after the first anniversary of the date the | ||
claim is submitted. | ||
(f) A manufacturer shall act as the single source of contact | ||
for the dealer for the manufacturer's component part product | ||
warranties, other than engine-related product warranties. | ||
Sec. 2301.906. REPURCHASE BY MANUFACTURER OR DISTRIBUTOR. | ||
(a) A manufacturer or distributor who terminates or non renews an | ||
agreement shall repurchase on demand from the dealer any of the | ||
following items, purchased by the dealer from the manufacturer or | ||
distributor, that are free and clear of a lien or encumbrance | ||
notwithstanding floorplans: | ||
(1) a new, unsold, and complete cargo or livestock | ||
trailer and cargo or livestock trailer with living quarters, with | ||
accessories and packaged trailers sold with the trailer, that: | ||
(A) is in the dealer's inventory; and | ||
(B) was purchased during the two years preceding | ||
the date of the termination; and | ||
(2) any new, current, unsold, and undamaged parts or | ||
accessories purchased from the manufacturer in the original, | ||
resalable package. | ||
(b) A demand for repurchase must be made in writing not | ||
later than the 90th day after the date the manufacturer or | ||
distributor terminates the agreement. The dealer shall provide the | ||
manufacturer or distributor with a complete list of the items to be | ||
repurchased. The manufacturer or distributor shall complete the | ||
repurchase not later than the 30th day after the date the dealer | ||
demands the repurchase. | ||
(c) The manufacturer or distributor shall: | ||
(1) repurchase an item described by Subsection (a)(1) | ||
at the dealer's invoiced cost plus freight, less any allowance paid | ||
to the dealer; | ||
(2) repurchase an item described by Subsection (a) (2) | ||
at the dealer's invoiced cost; and | ||
(3) it shall be the responsibility of the manufacturer | ||
or distributor to remove the trailers from the dealership and to pay | ||
the cost incurred to remove all products from the dealership and to | ||
transport an item described by Subsection (a) to the | ||
manufacturer | ||
or distributor. | ||
Sec. 2301.907. CIVIL LIABILITY. A person who violates this | ||
subchapter or an agreement regulated by this subchapter is liable | ||
to an injured party for: | ||
(1) the actual damages caused by the violation; and | ||
(2) reasonable legal fees and court costs if | ||
litigation is commenced in connection with the violation. | ||
Sec. 2301.908. VENUE FOR DISPUTE. Venue for a dispute under | ||
an agreement is in the county of the dealer's principal place of | ||
business as stated in the agreement. | ||
SECTION 2. Section 501.002(17), Transportation Code, is | ||
amended to read as follows: | ||
(17) "Motor vehicle" means: | ||
(A) any motor driven or propelled vehicle | ||
required to be registered under the laws of this state; | ||
(B) a trailer or semitrailer, other than | ||
manufactured housing [ |
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(C) a travel trailer; | ||
(D) an all-terrain vehicle or a recreational | ||
off-highway vehicle, as those terms are defined by Section 502.001, | ||
designed by the manufacturer for off-highway use that is not | ||
required to be registered under the laws of this state; or | ||
(E) a motorcycle, motor-driven cycle, or moped | ||
that is not required to be registered under the laws of this state. | ||
SECTION 3. Section 501.004(b), Transportation Code, is | ||
amended to read as follows: | ||
(b) This chapter does not apply to: | ||
(1) a [ |
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transportation of farm products if the products are not transported | ||
for hire; | ||
(2) the filing or recording of a lien that is created | ||
only on an automobile accessory, including a tire, radio, or | ||
heater; | ||
(3) a motor vehicle while it is owned or operated by | ||
the United States; or | ||
(4) a new motor vehicle on loan to a political | ||
subdivision of the state for use only in a driver education course | ||
conducted by an entity exempt from licensure under Section | ||
1001.002, Education Code. | ||
SECTION 4. Section 501.037, Transportation Code, is | ||
repealed. | ||
SECTION 5. Subchapter S, Chapter 2301, Occupations Code, as | ||
added by this Act, applies only to an agreement, as defined by | ||
Section 2301.901, Occupations Code, as added by this Act, entered | ||
into on or after the effective date of this Act. An agreement | ||
entered into before the effective date of this Act is governed by | ||
the law in effect on the date the agreement was entered into, and | ||
the former law is continued in effect for that purpose. | ||
SECTION 6. This Act takes effect September 1, 2017. |