By: Menéndez S.B. No. 2195
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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.