New Texas law covers dealer-manufacturer agreements

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Texas boat dealers scored a significant legislative victory on June 17 when Gov. Rick Perry signed HB 1960, which provides dealers increased stability when contracting with boatbuilders, the Marine Retailers Association of America reported.

The law goes into effect Sept. 1 and is the result of a coordinated effort of dealers around the state who united to push for its passage.

“Texas dealers united and worked diligently on the passing of HB 1960 to protect and enhance dealers’ substantial investments in their dealerships,” Ken Lovell, president of the Boating Trades Association of Metropolitan Houston, said in a statement.

“The new dealer-manufacturer agreement legislation will strengthen partnerships between dealers and manufacturers,” he added.

The new law’s key changes cover issues such as dealer territory, warranty work, parts delivery, three-year dealer agreement terms and specification of the type of default that may lead to termination of the agreement.

“Congratulations to the boat dealers in Texas for an outstanding grassroots lobby campaign that made passage of this bill possible in only one year,” MRAA president Phil Keeter said in a statement.


8 comments on “New Texas law covers dealer-manufacturer agreements

  1. Doug Reimel

    Hello Texas

    Who has the link to the nuts and bolts of this legislation. I am just a little concerned that this is frosting and not cake. Building good relationship is important and should be stronger than any law. Unfortuniatly, people move on.

  2. LA Dealer

    Texas, now you can sit back and watch boat manufacturers pull out of your state just as has happened in other states who have attempted similar agreements that are heavily favored to the dealer. Ask Louisiana dealers. Some of the dealers who originally pushed similar legislation in to law now regret it and in fact, Louisiana recently recended some of the original law to try and lure some of the manufacturers back but that’s not working too well for them. We are in a semi-sophisticated but honorable industry and trying to force your manufacturer/partners to accept an unbalanced agreement will most likely bite you in the end. Shame on you for choosing greed over a solid partnership with your manufacturers.

  3. Congrats Libya (um, Texas)

    So y’all want bigger government? Tell you and your manufacturer how to run their businesses? Congrats, you and your liberal money spending friends should be happy (bill authored by democrat Joe Deshotel). You guys remember what happened in Florida when the legislature got involved..that’s right, manufacturers moved out. I see great success for dealers in bordering states where manufacturers will give much of Texas territory to. You are only safe well inside the border.

    You can read the waste of internet space here:

  4. Former Texan

    I don’t guess any of you guys have been around long enough to remember when manufacturers pulled their product out from under you after you built their line up for years, just because one of the multi store guys wants to move into your territory and take over. Or come in and demand a $1M order just to force you out and let another dealer in. Sure, things are somewhat better now since the economy has tightened their belts too and they are trying to keep what dealers they have, but I say hooray for the Great State of Texas for once again standing up and leading the way!!!!! It doesn’t hurt to have some rules to keep the honorable just that way.

  5. Small Builder

    Love this part – C.S.H.B. 1960, in a provision that requires a manufacturer who terminates an agreement to repurchase on the dealer’s demand items purchased by the dealer from the manufacturer, removes the condition that a boat be retailable and undamaged and makes the repurchase requirement applicable to boats purchased during the last two years.
    So the Dealer gets to strip the boat first before repurchase?
    At least Louisiana holds it down to you can only strip 20% of hardware by value off the boat

  6. DFW

    I see a couple of useful items in this. And I see some REALLY bad ones. These are all things that should be handled by the businesses NOT the government. Capitalism is one of the things that makes this country so great, government interference in business dealings is one of the things that is bringing this great country down.

    This is another reason I will not support Rick Perry’s bid (if he tries) at becoming the republican candidate for POTUS

  7. JB

    One provision states that a dealer “except for the purposes of advertising without an advertised price or with a mfg. suggested retail price, a dealer may not advertise or promote the sales of the mfg.’s boats outside the dealer’s territory, including through the internet”.

    So now if I’m at the Houston boat show, and Houston is not my “territory”, I can’t show a price other than MSRP? I guess I can’t advertise in the local paper either because that paper may be delivered to someone outside my territory? And I can only show MSRP on my website? Yeah, this is just great for the dealers!

  8. MT

    Is this the same governor that just declined to ban texting while driving because he felt it was a “government effort to micromanage the behavior of adults” (his words)? Wonder what he thinks this billing is doing?

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