By: Clemons H.B. No. 364
73R2022 LJD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of telephone solicitation; providing
1-3 civil and criminal penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle 3, Title 79, Revised Statutes (Article
1-6 5069-9.01 et seq., Vernon's Texas Civil Statutes), is amended by
1-7 adding Chapter 18 to read as follows:
1-8 CHAPTER EIGHTEEN
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Art. 1. DEFINITIONS. In this chapter:
1-11 (1) "Item" means property or a good or service and
1-12 includes:
1-13 (A) a coupon book that is to be used with a
1-14 business or company; and
1-15 (B) an interest in real property.
1-16 (2) "Owner" means a person who owns, controls, or
1-17 otherwise has claim to 10 percent or more of the net income of a
1-18 seller.
1-19 (3) "Person" includes an individual, sole
1-20 proprietorship, firm, association, corporation, partnership, joint
1-21 venture, or any other business entity.
1-22 (4) "Principal" means an owner, an executive officer
1-23 of a corporation, a general partner of a partnership, a sole
1-24 proprietor, a trustee of a trust, or another individual with
2-1 similar supervisory functions with respect to any person.
2-2 (5) "Purchaser" means a person who is solicited to
2-3 become or becomes obligated for the purchase or rent of an item.
2-4 (6) "Registration statement" means a registration
2-5 statement required under this chapter.
2-6 (7) "Salesperson" means a person employed or
2-7 authorized by a seller to cause, or to attempt to cause, a
2-8 telephone solicitation.
2-9 (8) "Seller" means a person who, on the person's own
2-10 behalf, causes or attempts to cause a telephone solicitation.
2-11 (9) "Supervised financial institution" means a bank,
2-12 trust company, savings and loan association, credit union,
2-13 industrial loan company, personal property broker, consumer finance
2-14 lender, commercial finance lender, insurer, or other financial
2-15 institution that is subject to supervision by an official or agency
2-16 of this state or the United States.
2-17 (10) "Telephone solicitation" means a telephone call
2-18 to or from a person, initiated by a seller, salesperson, automatic
2-19 dialing machine, or recorded message device for the purpose of
2-20 inducing the person to purchase or rent an item and includes a call
2-21 made after a purchaser has responded to a solicitation sent by mail
2-22 or any other means.
2-23 Art. 2. EXEMPTIONS. (a) This chapter does not apply to:
2-24 (1) a person offering or selling a security that has
2-25 been qualified for sale under Section 7, The Securities Act
2-26 (Article 581-7, Vernon's Texas Civil Statutes), or that is subject
2-27 to an exemption under Section 5 or 6 of that Act;
3-1 (2) a publicly traded corporation registered with the
3-2 Securities and Exchange Commission or the State Securities Board,
3-3 or a subsidiary of the corporation;
3-4 (3) a person licensed under Article 21.01, Insurance
3-5 Code, if the solicited transaction is governed by the Insurance
3-6 Code;
3-7 (4) a person soliciting the sale of daily or weekly
3-8 newspapers, or magazines or other periodicals, of general
3-9 circulation;
3-10 (5) a supervised financial institution or parent,
3-11 subsidiary, or affiliate of a supervised financial institution;
3-12 (6) a person or affiliate of a person whose business
3-13 is regulated by the Public Utility Commission of Texas;
3-14 (7) a person soliciting exclusively the sale of
3-15 telephone answering services to be provided by that person or that
3-16 person's employer;
3-17 (8) the solicitation of sales by a person, or by an
3-18 agent of the person, who does not intend to complete, and does not
3-19 complete, the sales transaction by telephone;
3-20 (9) a person soliciting from a former or current
3-21 client if the proposed transaction is similar or related to prior
3-22 transactions with that client;
3-23 (10) a charitable trust recognized by the Internal
3-24 Revenue Service as exempt from filing an annual return (IRS Form
3-25 990 or its successor) as a church, an integrated auxiliary,
3-26 convention, or association of churches, or because of exclusively
3-27 religious activities, that is exempt under Sections
4-1 6033(a)(2)(A)(i) and (iii), and 6033(a)(2)(B), Internal Revenue
4-2 Code of 1986, and the regulations, revenue procedures, and revenue
4-3 rulings adopted under those sections;
4-4 (11) a charitable trust, other than an entity
4-5 classified as a private foundation under Section 507(a), Internal
4-6 Revenue Code of 1986, that:
4-7 (A) was exempted from federal taxation before
4-8 September 1, 1987; and
4-9 (B) is exempted from filing a federal tax return
4-10 under Sections 6033(a)(2)(A)(ii) and (a)(2)(B), Internal Revenue
4-11 Code of 1986, and the regulations, revenue procedures, and revenue
4-12 rulings adopted under those sections, because it has gross receipts
4-13 in each taxable year of less than $25,000 or other minimum
4-14 determined by the Internal Revenue Service;
4-15 (12) a charitable trust that is an academic
4-16 institution for higher education with a certificate of authority to
4-17 grant a degree issued by the Texas Higher Education Coordinating
4-18 Board or accredited by a regional accrediting organization
4-19 recognized by that board;
4-20 (13) a person making telephone calls for religious,
4-21 charitable, political, or other noncommercial purposes;
4-22 (14) a person engaging in an isolated telephone
4-23 solicitation that does not occur in the course of a pattern of
4-24 repeated transactions of a similar nature;
4-25 (15) a sale in which the purchaser is a business that
4-26 intends to:
4-27 (A) resell the item purchased; or
5-1 (B) use the item purchased in a recycling,
5-2 reuse, remanufacturing, or manufacturing process;
5-3 (16) a person soliciting the sale of food intended for
5-4 immediate delivery to and immediate consumption by the purchaser;
5-5 (17) the solicitation of sales by a person who
5-6 periodically publishes and delivers to purchasers a catalog that:
5-7 (A) contains a written description or
5-8 illustration of each item offered for sale;
5-9 (B) includes the business address of the seller;
5-10 (C) includes at least 100 pages of written
5-11 material and illustrations, or is one of a series of catalogs that
5-12 contain a cumulative total of 100 pages in a calendar year;
5-13 (D) is distributed in more than one state; and
5-14 (E) is distributed by mail with an annual
5-15 circulation of not less than 250,000;
5-16 (18) a person soliciting the sale of services provided
5-17 by a cable television system operating under authority of a
5-18 franchise or permit;
5-19 (19) the solicitation of contracts for the maintenance
5-20 or repair of items previously purchased from the person making the
5-21 solicitation or on whose behalf the solicitation is made;
5-22 (20) a person soliciting:
5-23 (A) without intent to complete or obtain
5-24 provisional acceptance of a sale during the telephone solicitation;
5-25 and
5-26 (B) who does not make the major sales
5-27 presentation during the telephone solicitation but arranges for the
6-1 major sales presentation to be made at a later face-to-face meeting
6-2 between the salesperson and the purchaser;
6-3 (21) a person regulated by the United States
6-4 Department of Transportation as an air carrier; or
6-5 (22) a person subject to the control or licensing
6-6 regulations of the Federal Communications Commission.
6-7 (b) In a civil proceeding alleging a violation of this
6-8 chapter, the burden of proving an exemption is on the person
6-9 claiming the exemption, and in a criminal proceeding alleging a
6-10 violation of this chapter, the burden of producing evidence to
6-11 support a defense based on an exemption is on the person claiming
6-12 the exemption.
6-13 Art. 3. CONSTRUCTION AND APPLICATION. This chapter shall be
6-14 liberally construed and applied to promote its underlying purpose
6-15 to protect persons against false, misleading, or deceptive
6-16 practices in the telephone solicitation business.
6-17 SUBCHAPTER B. REGISTRATION OF TELEPHONE SELLERS
6-18 Art. 4. REGISTRATION REQUIRED. (a) A seller may not engage
6-19 in telephone solicitation from a location in this state or to a
6-20 purchaser located in this state without a certificate of
6-21 registration for the business location from which the solicitation
6-22 is made.
6-23 (b) A separate certificate is required for each business
6-24 location from which a solicitation is made.
6-25 Art. 5. CONTENTS OF REGISTRATION STATEMENT; VERIFICATION;
6-26 PUBLIC INFORMATION. (a) To obtain a certificate of registration,
6-27 a seller must file a registration statement with the secretary of
7-1 state.
7-2 (b) A registration statement must be in the form prescribed
7-3 by the secretary of state and contain the information required by
7-4 Subchapter C of this chapter.
7-5 (c) A registration statement must be verified by each
7-6 principal of the seller and must specify the date and location of
7-7 verification.
7-8 (d) All information included in or attached to a
7-9 registration statement is public information.
7-10 Art. 6. FILING FEE. The filing fee for a registration
7-11 statement is $50.
7-12 Art. 7. ISSUANCE OF CERTIFICATE OF REGISTRATION. (a) On
7-13 receipt of a completed registration statement, the filing fee
7-14 required by Article 6 of this chapter, the security required by
7-15 Article 10 of this chapter, and the consent regarding service of
7-16 process required by Article 11 of this chapter, the secretary of
7-17 state shall issue a certificate of registration and mail the
7-18 certificate to the seller.
7-19 (b) If the seller uses one registration statement to
7-20 register more than one business location, the secretary of state
7-21 shall issue a certificate for each business location and mail all
7-22 the certificates to the principal business location shown on the
7-23 registration statement.
7-24 Art. 8. EFFECTIVE DATE; RENEWAL. The effective date of a
7-25 registration statement is the date on which the secretary of state
7-26 issues the certificate. A registration statement is effective for
7-27 one year after its effective date and may be renewed annually by
8-1 filing a renewal registration statement with the information
8-2 required by Subchapter C of this chapter and paying the filing fee.
8-3 Art. 9. UPDATE ADDENDUM REQUIRED. (a) A seller shall file
8-4 with the secretary of state an update addendum at quarterly
8-5 intervals, computed from the effective date of registration,
8-6 providing all required registration information for all
8-7 salespersons who are currently soliciting or have solicited on
8-8 behalf of the seller at any time during the period between the
8-9 filing of the registration statement or the last addendum and the
8-10 current addendum.
8-11 (b) In addition to the quarterly updates, if a material
8-12 change in information submitted in a registration statement, other
8-13 than the information described by Subsection (a) of this article,
8-14 occurs before the date for renewal, a seller shall submit that
8-15 information to the secretary of state by filing an update addendum.
8-16 Art. 10. SECURITY. (a) A registration statement filed
8-17 under this chapter must be accompanied by:
8-18 (1) a bond executed by a corporate surety approved by
8-19 the secretary of state and licensed to do business in this state;
8-20 (2) an irrevocable letter of credit issued for the
8-21 benefit of the registrant by a supervised financial institution
8-22 whose deposits are insured by an agency of the federal government;
8-23 or
8-24 (3) a certificate of deposit in a supervised financial
8-25 institution whose deposits are insured by an agency of the federal
8-26 government, the principal of which may be withdrawn only on the
8-27 order of the secretary of state.
9-1 (b) The amount of the bond, letter of credit, or certificate
9-2 of deposit must be $10,000, and the bond, letter of credit, or
9-3 certificate of deposit must be conditioned on compliance by the
9-4 seller with this chapter.
9-5 Art. 11. SECRETARY OF STATE AS SELLER'S AGENT TO RECEIVE
9-6 SERVICE. (a) A seller shall file with the secretary of state, in
9-7 the form prescribed by the secretary of state, an irrevocable
9-8 consent appointing the secretary of state to act as the seller's
9-9 agent to receive service of any lawful process in any noncriminal
9-10 suit, action, or proceeding against the seller or the seller's
9-11 successor, executor, or administrator that may arise under this
9-12 chapter, when:
9-13 (1) an agent has not been designated under Subdivision
9-14 15, Article 12, of this chapter;
9-15 (2) the agent has resigned or died and a replacement
9-16 has not been designated under Article 9 of this chapter; or
9-17 (3) the agent cannot with reasonable diligence be
9-18 found at the designated address.
9-19 (b) Service on the secretary of state under this article has
9-20 the same force and validity as service on the seller. Service on
9-21 the secretary of state may be made by:
9-22 (1) leaving a copy of the process in the office of the
9-23 secretary of state;
9-24 (2) promptly sending by first-class mail a notice of
9-25 the service and a copy of the process to the seller's principal
9-26 business location at the last address on file with the secretary of
9-27 state; and
10-1 (3) filing the plaintiff's affidavit of compliance
10-2 with this article in the case on or before the return date of the
10-3 process, if any, or within an additional period that the court
10-4 allows.
10-5 SUBCHAPTER C. CONTENTS OF REGISTRATION STATEMENT
10-6 Art. 12. DISCLOSURE OF CERTAIN NAMES, ADDRESSES, AND
10-7 ORGANIZATIONAL INFORMATION. A registration statement must contain
10-8 the following information:
10-9 (1) the seller's name and the name under which the
10-10 seller is doing or intends to do business, if different from the
10-11 seller's name;
10-12 (2) the name of each parent and affiliated
10-13 organization of the seller that:
10-14 (A) will engage in business transactions with
10-15 purchasers relating to sales solicited by the seller; or
10-16 (B) accepts responsibility for statements made
10-17 by, or acts of, the seller relating to sales solicited by the
10-18 seller;
10-19 (3) the seller's business form and place of
10-20 organization;
10-21 (4) if the seller is a corporation, a copy of its
10-22 articles of incorporation and bylaws;
10-23 (5) if the seller is a partnership, a copy of the
10-24 partnership agreement;
10-25 (6) if the seller is operating under an assumed
10-26 business name, the location where the assumed name has been
10-27 registered;
11-1 (7) for any parent or affiliated organization
11-2 disclosed under Subdivision (2) of this article, the applicable
11-3 information that is required of a seller under Subdivisions (3)-(6)
11-4 of this article;
11-5 (8) the complete street address of each location of
11-6 the seller, designating the principal location from which the
11-7 seller will be conducting business;
11-8 (9) if the principal business location of the seller
11-9 is not in this state, a designation of its main location in the
11-10 state;
11-11 (10) a listing of each telephone number to be used by
11-12 the seller and the address where each telephone using the number is
11-13 located;
11-14 (11) the name and title of each of the seller's
11-15 officers, directors, trustees, general and limited partners, sole
11-16 proprietor, and owners, as applicable, and the name of each of
11-17 those persons who have management responsibilities in connection
11-18 with the seller's business activities;
11-19 (12) the complete address of the principal residence,
11-20 the date of birth, and the number and state of issuance of the
11-21 driver's license of each person whose name is disclosed under
11-22 Subdivision (11) of this article;
11-23 (13) the name and principal residence address of each
11-24 person the seller leaves in charge at each location from which the
11-25 seller does business in this state and the business location at
11-26 which each of these persons is or will be in charge;
11-27 (14) the name and principal residence address of each
12-1 salesperson who solicits on behalf of the seller and the name the
12-2 salesperson uses while soliciting;
12-3 (15) the name and address of the seller's agent in
12-4 this state, other than the secretary of state, authorized to
12-5 receive service of process; and
12-6 (16) the name and address of each financial
12-7 institution with which banking or similar monetary transactions are
12-8 made by the seller and the identification number of each of the
12-9 seller's accounts in each institution.
12-10 Art. 13. DISCLOSURE OF CERTAIN CONVICTIONS, JUDGMENTS,
12-11 ORDERS, AND BANKRUPTCIES. (a) With respect to the seller and each
12-12 person identified under Subdivision (11) or (13), Article 12, of
12-13 this chapter, a registration statement must state the identity of
12-14 each person:
12-15 (1) who has been convicted of or pleaded nolo
12-16 contendere to a felony or misdemeanor involving an alleged
12-17 violation of this chapter, or fraud, theft, embezzlement,
12-18 fraudulent conversion, or misappropriation of property;
12-19 (2) against whom has been entered a final judgment or
12-20 order in a civil or administrative action, including a stipulated
12-21 judgment or order, in which the complaint or petition alleged acts
12-22 constituting a violation of this chapter, fraud, theft,
12-23 embezzlement, fraudulent conversion, or misappropriation of
12-24 property, the use of untrue or misleading representations in an
12-25 attempt to sell or dispose of real or personal property, or the use
12-26 of unfair, unlawful, or deceptive business practices;
12-27 (3) who is subject to an injunction or restrictive
13-1 court order relating to business activity as the result of an
13-2 action brought by a federal, state, or local public agency,
13-3 including an action affecting any vocational license; or
13-4 (4) who has, during the previous seven tax years,
13-5 filed in bankruptcy, been adjudged a bankrupt, been reorganized due
13-6 to insolvency, or has been a principal, director, officer, trustee,
13-7 general or limited partner, or had management responsibilities of a
13-8 corporation, partnership, joint venture, or other business entity
13-9 that has filed in bankruptcy, been adjudged a bankrupt, or been
13-10 reorganized due to insolvency while the person held that position
13-11 or within one year after the date on which the person last held
13-12 that position.
13-13 (b) Under Subsections (a)(1), (2), and (3) of this article,
13-14 the statement must identify the court or administrative agency
13-15 rendering the conviction, judgment, or order, the docket number of
13-16 the matter, the date of conviction, judgment, or order, and the
13-17 name of the governmental agency, if any, that brought the action
13-18 resulting in the conviction, judgment, or order. Under Subsection
13-19 (a)(4) of this article, the statement must include the name and
13-20 location of the person filing in bankruptcy, adjudged a bankrupt,
13-21 or reorganized due to insolvency, and must include the date of the
13-22 filing, judgment, or reorganization order, the court having
13-23 jurisdiction, and the docket number of the matter.
13-24 Art. 14. DISCLOSURE OF CERTAIN SALES INFORMATION. The
13-25 registration statement must be accompanied by the following
13-26 information:
13-27 (1) a description of the items the seller is offering
14-1 for sale and a copy of all sales scripts the seller requires
14-2 salespersons to use, recommends that salespersons use, or provides
14-3 to salespersons to use when soliciting purchasers, or if no sales
14-4 script is required, recommended, or provided, a statement of that
14-5 fact;
14-6 (2) a copy of all sales information and literature,
14-7 including scripts, outlines, instructions, and information
14-8 regarding the conduct of telephone solicitations, sample
14-9 introductions, sample closings, product information, and contest or
14-10 premium-award information, provided by the seller to salespersons
14-11 or about which the seller informs salespersons, and a copy of all
14-12 written material the seller sends to any purchaser;
14-13 (3) if the seller represents or implies, or directs
14-14 salespersons to represent or imply, to purchasers that the
14-15 purchaser will receive a specific item, including a certificate
14-16 that the purchaser must redeem to obtain the item described in the
14-17 certificate, or one or more items from among designated items,
14-18 whether the items are denominated as gifts, premiums, bonuses,
14-19 prizes, or otherwise:
14-20 (A) a list of the items described;
14-21 (B) the value of each item and the basis for the
14-22 valuation;
14-23 (C) the price paid by the seller to its supplier
14-24 for each item and the name, address, and telephone number of each
14-25 item's supplier;
14-26 (D) if the purchaser is to receive fewer than
14-27 all of the items described by the seller:
15-1 (i) the manner in which the seller
15-2 decides which item a particular purchaser is to receive;
15-3 (ii) for each item, the odds of a single
15-4 purchaser's receiving the item; and
15-5 (iii) the name and address of each
15-6 recipient who has received, during the preceding 12 months, or if
15-7 the seller has not been in business that long, during the period
15-8 the seller has been in business, the item having the greatest value
15-9 and the item with the smallest odds of being received; and
15-10 (E) all rules, regulations, terms, and
15-11 conditions a purchaser must meet in order to receive the item;
15-12 (4) if the seller is offering an item that the seller
15-13 neither manufactures nor supplies:
15-14 (A) the name, address, and telephone number of
15-15 each of the seller's suppliers and a description of each item
15-16 provided by the supplier;
15-17 (B) if the possession of the item is to be
15-18 retained by the seller or will not be transferred to the purchaser
15-19 until the purchaser has paid in full:
15-20 (i) the address of each location where the
15-21 item will be kept;
15-22 (ii) if not kept on premises owned by the
15-23 seller or at an address registered under Subdivision (8) or (9),
15-24 Article 12, of this chapter, the name of the owner of the business
15-25 at which the item will be kept; and
15-26 (iii) a copy of any contract or other
15-27 document that evidences the seller's right to store the item at the
16-1 address designated under Subparagraph (ii) of this subdivision;
16-2 (C) if the seller is not selling the item from
16-3 its own inventory but purchases the item to fill an order already
16-4 taken from a purchaser, copies of all contracts or other documents
16-5 evidencing the seller's ability to call on suppliers to fill the
16-6 seller's orders;
16-7 (D) if the seller represents to purchasers that
16-8 the seller has insurance or a surety bond of any type relating to a
16-9 purchaser's purchase of any item, a complete copy of each insurance
16-10 policy and bond; and
16-11 (E) if the seller makes any representation as to
16-12 the postpurchase earning or profit potential of an item, data to
16-13 substantiate the claims made, and if the representation relates to
16-14 previous sales made by the seller or a related entity,
16-15 substantiating data based on the experiences of at least 50 percent
16-16 of the persons who purchased that particular type of item from the
16-17 seller or related entity during the preceding six months, or if the
16-18 seller or related entity has not been in business that long, during
16-19 the period the seller or related entity has been in business,
16-20 including:
16-21 (i) the length of time the seller or
16-22 related entity has been selling the particular type of item being
16-23 offered;
16-24 (ii) the number of purchasers of the item
16-25 from the seller or related entity known to the seller or related
16-26 entity to have made at least the same earnings or profit as those
16-27 represented; and
17-1 (iii) the percentage that the number
17-2 disclosed under Subparagraph (ii) of this subdivision represents of
17-3 the total number of purchasers from the seller or related entity of
17-4 the particular type of item offered; and
17-5 (5) if the seller is offering to sell an interest in
17-6 oil, gas, or a mineral field, well, or exploration site:
17-7 (A) the seller's ownership interest, if any, in
17-8 each field, well, or site being offered for sale;
17-9 (B) the total number of interests to be sold in
17-10 each field, well, or site being offered for sale; and
17-11 (C) if, in selling an interest in any particular
17-12 field, well, or site, reference is made to an investigation of the
17-13 field, well, or site by the seller or anyone else:
17-14 (i) the name, business address, telephone
17-15 number, and professional credentials of the person who made the
17-16 investigation; and
17-17 (ii) a copy of the report and other
17-18 documents relating to the investigation prepared by the person.
17-19 SUBCHAPTER D. ADDITIONAL INFORMATION FROM SELLER
17-20 Art. 15. INFORMATION POSTED OR AVAILABLE AT SELLER'S
17-21 BUSINESS LOCATION. (a) A seller shall post the certificate of
17-22 registration in a conspicuous place at the location for which it is
17-23 issued.
17-24 (b) A seller shall make available at each of the seller's
17-25 business locations a copy of the entire registration statement and
17-26 update addenda, if any, for inspection by any purchaser or
17-27 representative of any governmental agency.
18-1 (c) A seller shall post in close proximity to the
18-2 certificate of registration the name of each individual in charge
18-3 of the location.
18-4 Art. 16. DISCLOSURES TO PROSPECTIVE PURCHASERS. A seller
18-5 shall, when the solicitation is made and before consummation of any
18-6 sales transaction, provide to each purchaser:
18-7 (1) the complete street address of the location from
18-8 which the salesperson is calling the purchaser and, if different,
18-9 the complete street address of the seller's principal location;
18-10 (2) if the seller represents or implies that a
18-11 purchaser will receive without charge a specified item or one item
18-12 from among designated items, whether the items are denominated as
18-13 gifts, premiums, bonuses, prizes, or otherwise:
18-14 (A) the information required to be filed by
18-15 Subdivisions (3)(D)(i) and (ii) and (3)(E), Article 14, of this
18-16 chapter, as appropriate; and
18-17 (B) the total number of individuals who have
18-18 actually received from the seller during the preceding 12 months,
18-19 or if the seller has not been in the business that long, during the
18-20 period the seller has been in business, the item having the
18-21 greatest value and the item with the smallest odds of being
18-22 received;
18-23 (3) if the seller is offering to sell an interest in
18-24 oil, gas, or mineral field, well, or exploration site, the
18-25 information required by Subdivision (5), Article 14, of this
18-26 chapter; and
18-27 (4) if the seller represents that an item is being
19-1 offered at a price below that usually charged for the item, the
19-2 name of the manufacturer of the item.
19-3 Art. 17. NO REFERENCE TO COMPLIANCE WITH STATUTE. A seller
19-4 may not make or authorize the making of a reference to its
19-5 compliance with this chapter to a purchaser.
19-6 SUBCHAPTER E. OFFENSES
19-7 Art. 18. VIOLATION OF CHAPTER. (a) A person commits an
19-8 offense if the person knowingly or intentionally violates Article
19-9 4, 9, 15, 16, or 17 of this chapter.
19-10 (b) An offense under this article is a Class A misdemeanor.
19-11 Art. 19. SALESPERSON FOR UNREGISTERED SELLER. (a) A person
19-12 commits an offense if the person knowingly or intentionally acts as
19-13 a salesperson on behalf of a seller who violates the registration
19-14 requirements of this chapter.
19-15 (b) An offense under this article is a Class A misdemeanor.
19-16 SUBCHAPTER F. ENFORCEMENT
19-17 Art. 20. INJUNCTION. The attorney general may sue in a
19-18 court of competent jurisdiction to enjoin a person from violating
19-19 this chapter. The attorney general shall notify the defendant of
19-20 the alleged prohibited conduct not later than the seventh day
19-21 before the date the suit is filed, unless the attorney general
19-22 intends to request that the court issue a temporary restraining
19-23 order, in which event notice is not required.
19-24 Art. 21. CIVIL PENALTIES. A person who violates an
19-25 injunction issued under Article 20 of this chapter is liable to the
19-26 state for a civil penalty of not more than $25,000 for a single
19-27 violation and not more than $50,000 for all violations of the
20-1 injunction. The attorney general may bring suit to recover the
20-2 civil penalty in the court that issued the original injunction.
20-3 Art. 22. DECEPTIVE TRADE PRACTICES. A violation of this
20-4 chapter is a false, misleading, or deceptive act or practice under
20-5 Subchapter E, Chapter 17, Business & Commerce Code, and any public
20-6 or private right or remedy prescribed by that subchapter may be
20-7 used to enforce this chapter.
20-8 Art. 23. ACTION TO RECOVER AGAINST SECURITY. (a) A person
20-9 who is injured by the bankruptcy of a seller or the seller's breach
20-10 of an agreement entered into during a telephone solicitation may
20-11 bring and maintain an action to recover against the bond, letter of
20-12 credit, or certificate of deposit required under Article 10 of this
20-13 chapter.
20-14 (b) The liability of the surety on a bond provided pursuant
20-15 to Article 10 of this chapter does not exceed the amount of the
20-16 bond, regardless of the number of claims filed or the aggregate
20-17 amount claimed. If the amount claimed exceeds the amount of the
20-18 bond, the surety shall deposit the amount of the bond with the
20-19 secretary of state for distribution to claimants entitled to
20-20 recovery, and the surety is then relieved of all liability under
20-21 the bond.
20-22 Art. 24. NO WAIVER. An attempted waiver of a provision of
20-23 this chapter is void.
20-24 Art. 25. CUMULATIVE REMEDIES. The remedies provided by this
20-25 chapter are in addition to any other procedures or remedies
20-26 provided for by other law.
20-27 SECTION 2. (a) This Act takes effect January 1, 1994.
21-1 (b) The change in law made by this Act applies only to an
21-2 offense committed on or after the effective date of this Act. For
21-3 purposes of this section, an offense is committed before the
21-4 effective date of this Act if any element of the offense occurs
21-5 before that date.
21-6 SECTION 3. The importance of this legislation and the
21-7 crowded condition of the calendars in both houses create an
21-8 emergency and an imperative public necessity that the
21-9 constitutional rule requiring bills to be read on three several
21-10 days in each house be suspended, and this rule is hereby suspended.