Bill Text: TX SB2195 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to fair allocation requirements for manufacturers, distributers, or manufacturer representatives.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-22 - Referred to Business & Commerce [SB2195 Detail]
Download: Texas-2023-SB2195-Introduced.html
| By: Menéndez | S.B. No. 2195 | |
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| relating to fair allocation requirements for manufacturers, | ||
| distributers, or manufacturer representatives. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 2301., Occupations Code is amended by adding | ||
| Section 2301.4672 to read as follows: | ||
| Sec. 2301.4672 FAIR ALLOCATION REQUIREMENTS. | ||
| (a) Notwithstanding the terms of any franchise agreement or | ||
| any other law, a manufacturer, distributor, or manufacturer | ||
| representative shall, on a quarterly or any three month period, for | ||
| each line-make, make available an allocation to each motor vehicle | ||
| dealer sufficient numbers of vehicles, by model, to permit each | ||
| motor vehicle dealer to meet any sales standards for that period | ||
| that are required or set by the manufacturer, distributor, or | ||
| manufacturer representative for such dealer, including but not | ||
| limited to any sales measurement or criteria authored by the | ||
| manufacturer and communicated to the dealer that sets a target, | ||
| goal, or expectation of sales to be made by the dealer in the | ||
| dealer's assigned geographic area or area of responsibility. | ||
| (b) A manufacturer, distributor, or manufacturer | ||
| representative may assert a defense to a claim under this section by | ||
| making a showing of good cause for the failure to comply. Good cause | ||
| is demonstrated by establishing with clear and convincing evidence | ||
| that the manufacturer, distributor, or manufacturer representative | ||
| was physically unable to make available an allocation of sufficient | ||
| inventory to the affected dealer due to limited supply available to | ||
| the manufacturer. This defense shall only apply if the | ||
| manufacturer, distributor, or manufacturer representative is also | ||
| able to demonstrate that the limited supply of inventory is borne, | ||
| or has been borne, equally and fairly by all dealers of said | ||
| manufacturer in this State as to the same line-make and model in | ||
| proportion to each dealer's assigned geographic area or area of | ||
| responsibility. | ||
| (c) Given the immediate economic impact on a motor vehicle | ||
| dealer that is not allocated fair and sufficient inventory to | ||
| permit the dealer to meet the manufacturer's sales expectations | ||
| referenced in paragraph (a), on a complaint filed by the dealer | ||
| alleging that a manufacturer, distributor, or manufacturer | ||
| representative has failed to comply with paragraph (a), the | ||
| Department of Motor Vehicles/SOAH shall set the matter for final | ||
| hearing within 60-days of the manufacturer's, distributor's, or | ||
| manufacturer representative's response to the complaint file by | ||
| the complaining dealer. | ||
| (d) A manufacturer's sales standard or measurement referred | ||
| to in subsection (a) is not relevant to the Board's determination | ||
| of "good cause" under §2301.453 of this Chapter. | ||
| (e) On a finding by the Board of a violation of § | ||
| 2301.4672(a) or (c) by a manufacturer, the dealer may pursues all | ||
| remedies available and as set forth under Subchapter E, Chapter 17, | ||
| Business & Commerce Code §17.50 in any State Court of competent | ||
| jurisdiction in the county where the dealer is located. | ||
| SECTION 2. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2023. | ||
