1-1  By:  Haley, Parker                                     S.B. No. 195
    1-2        (In the Senate - Filed January 27, 1993; January 28, 1993,
    1-3  read first time and referred to Committee on Economic Development;
    1-4  February 3, 1993, reported favorably by the following vote:  Yeas
    1-5  6, Nays 5; February 3, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Parker             x                               
    1-9        Lucio                      x                       
   1-10        Ellis                      x                       
   1-11        Haley              x                               
   1-12        Harris of Dallas   x                               
   1-13        Harris of Tarrant  x                               
   1-14        Leedom                     x                       
   1-15        Madla              x                               
   1-16        Rosson             x                               
   1-17        Shapiro                    x                       
   1-18        Wentworth                  x                       
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to franchise agreements for fast food restaurants;
   1-22  creating offenses and providing penalties.
   1-23        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-24        SECTION  1.  Title 2, Business & Commerce Code, is amended by
   1-25  adding Chapter 20 to read as follows:
   1-26             CHAPTER 20.  FAST FOOD RESTAURANT FRANCHISES
   1-27        Sec. 20.01.  PURPOSES.  The purposes of this chapter are:
   1-28              (1)  to promote the public's interest in the fair,
   1-29  efficient, and competitive franchising of the fast food restaurant
   1-30  business within this state by establishing minimum standards of
   1-31  conduct in such franchise relationships; and
   1-32              (2)  to acknowledge a special relationship between fast
   1-33  food franchisors and franchisees since many fast food franchises
   1-34  reflect a profound imbalance of contractual power in favor of the
   1-35  franchisor and fail to give due regard to the legitimate business
   1-36  interests of the franchisee as a result of the franchisor's
   1-37  reserving pervasive contractual rights over the franchise
   1-38  relationship.
   1-39        Sec. 20.02.  DEFINITIONS.  In this chapter:
   1-40              (1)  "Affiliate" means a person controlling, controlled
   1-41  by, or under common control with another person.
   1-42              (2)  "Fast food restaurant" means a restaurant where
   1-43  food and beverages are sold for consumption on or off the premises
   1-44  and delivered to the customer after the customer places an order
   1-45  with a cashier at a counter or drive-through window or by
   1-46  telephone.  The term does not include a restaurant where a majority
   1-47  of the customers are seated at tables before a person waiting on
   1-48  the tables takes their orders.
   1-49              (3)  "Franchise" means an oral or written agreement,
   1-50  either express or implied, which:
   1-51                    (A)  grants the right to distribute goods or
   1-52  provide services under a marketing plan prescribed or suggested in
   1-53  substantial part by the franchisor;
   1-54                    (B)  requires payment, directly or indirectly, of
   1-55  a franchise fee to a franchisor or its affiliate; and
   1-56                    (C)  allows the franchised business to be
   1-57  substantially associated with the franchisor's trademark, service
   1-58  mark, trade name, logotype, advertisement, or other commercial
   1-59  symbol of or commercial symbol designating the franchisor or its
   1-60  affiliate.
   1-61              (4)  "Franchisee" means a person to whom a franchise is
   1-62  offered or granted.
   1-63              (5)  "Franchisor" means a person who offers or grants a
   1-64  franchise to another person.
   1-65              (6)  "Franchise fee" means a direct or indirect payment
   1-66  to purchase or operate a franchise.  Franchise fee does not include
   1-67  any of the following:
   1-68                    (A)  payment of a reasonable service charge to
    2-1  the issuer of a credit card by an establishment accepting the
    2-2  credit card;
    2-3                    (B)  an agreement to purchase at a bona fide
    2-4  wholesale price a reasonable quantity of tangible goods for resale;
    2-5                    (C)  payment of rent which reflects payment for
    2-6  the economic value of leased real or personal property;
    2-7                    (D)  the purchase or agreement to purchase a
    2-8  reasonable quantity of promotional or demonstration supplies,
    2-9  materials, or equipment furnished at fair market value and not
   2-10  intended for resale; or
   2-11                    (E)  the purchase or agreement to purchase, at a
   2-12  fair market value, any fixtures, equipment, leasehold improvements,
   2-13  real property, supplies, or other materials reasonably necessary to
   2-14  enter into or continue a business.
   2-15              (7)  "Good faith" means that a franchise contract
   2-16  imposes on each party thereto a duty to act in good faith in its
   2-17  performance and enforcement.  This duty of good faith obligates a
   2-18  party to a franchise, in making a decision that directly affects
   2-19  the franchise or the business conducted under the franchise, to
   2-20  give fair regard for the interests of the other party or parties
   2-21  that are likely to be affected by the decision and to refrain from
   2-22  conduct that may impair or injure the right of the other party or
   2-23  parties to receive the reasonably anticipated benefits of the
   2-24  franchise.
   2-25              (8)  "Trade secret" has the meaning assigned by Section
   2-26  31.05, Penal Code.
   2-27        Sec. 20.03.  APPLICATION.  This chapter applies only to a
   2-28  franchise for a fast food restaurant but, except for Section 20.10,
   2-29  does not apply to a franchise for a fast food restaurant:
   2-30              (1)  in which the franchisor owns the real estate and
   2-31  improvements on which the franchised business is operated;
   2-32              (2)  if the franchisor owns and operates fewer than 35
   2-33  percent of the total number of fast food restaurants identified
   2-34  with the franchisor's trademark, service mark, trade name,
   2-35  logotype, advertisement, or other commercial symbol of or
   2-36  commercial symbol designating the franchisor or its affiliate; or
   2-37              (3)  which includes specific territorial protection for
   2-38  the restaurant.
   2-39        Sec. 20.04.  NO WAIVER.  This chapter applies notwithstanding
   2-40  any contrary or conflicting provision in a franchise.  The parties
   2-41  to a franchise may not waive any of the provisions of this chapter,
   2-42  except as part of a settlement of a bona fide dispute.
   2-43        Sec. 20.05.  DUTY OF GOOD FAITH.  Each franchise subject to
   2-44  this chapter includes an implied duty of good faith in its
   2-45  performance and enforcement.
   2-46        Sec. 20.06.  TRANSFERABILITY.  (a)  A franchisee may transfer
   2-47  the franchised business and franchise or an interest in a
   2-48  franchised business and franchise to a transferee, provided the
   2-49  transferee satisfies the reasonable, current qualifications of the
   2-50  franchisors for new franchisees.  For purposes of this section, a
   2-51  reasonable, current qualification for a new franchisee is a
   2-52  qualification based on a legitimate business reason.  If the
   2-53  proposed transferee does not meet the reasonable, current
   2-54  qualifications of the franchisor, the franchisor may refuse to
   2-55  permit the transfer, provided the refusal of the franchisor to
   2-56  consent to the transfer is not arbitrary or capricious when
   2-57  compared to the actions of the franchisor in other similar
   2-58  circumstances.
   2-59        (b)  Except as otherwise provided in this section, a
   2-60  franchisor may exercise a right of first refusal contained in a
   2-61  franchise agreement after receipt of a proposal from the franchisee
   2-62  to transfer the franchise.
   2-63        (c)  A franchisor may require as a condition of a transfer
   2-64  any of the following:
   2-65              (1)  that the transferee successfully complete a
   2-66  reasonable training program;
   2-67              (2)  that a reasonable transfer fee be paid to
   2-68  reimburse the franchisor for the franchisor's reasonable and actual
   2-69  expenses directly attributable to the transfer; or
   2-70              (3)  that the franchisee pay or make provision
    3-1  reasonably acceptable to the franchisor to pay any amount due the
    3-2  franchisor or the franchisor's affiliate.
    3-3        (d)  A franchisor shall not withhold consent to a
    3-4  franchisee's making a public offering of the franchisee's
    3-5  securities without good cause, provided the franchisee or the
    3-6  owners of the franchise retain control of more than 50 percent of
    3-7  the voting power in the franchise.
    3-8        (e)  A franchisee may transfer the franchisee's interest in
    3-9  the franchise for the unexpired term of the franchise agreement,
   3-10  and a franchisor shall not require the franchisee or the transferee
   3-11  to enter into a new or different franchise agreement as a condition
   3-12  of the transfer.
   3-13        (f)  A franchisee shall give the franchisor no less than 30
   3-14  days written notice of a transfer which is subject to the
   3-15  provisions of this section and, on request from the franchisor,
   3-16  shall provide in writing the ownership interests of all persons
   3-17  holding or claiming an equitable or beneficial interest in the
   3-18  franchise subsequent to the transfer of the franchise, as
   3-19  appropriate.  A franchisee shall not circumvent the intended effect
   3-20  of a contractual provision governing the transfer of the franchise
   3-21  or an interest in the franchise by means of a management agreement,
   3-22  lease, profit-sharing agreement, conditional assignment, or other
   3-23  similar device.
   3-24        (g)  A franchisor shall not transfer its interest in a
   3-25  franchise unless the franchisor makes reasonable provision for the
   3-26  performance of the franchisor's obligations under the franchise
   3-27  agreement by the transferee.  A franchisor shall provide the
   3-28  franchisee notice of a proposed transfer of the franchisor's
   3-29  interest in the franchise at the time the disclosure is required of
   3-30  the franchisor under applicable securities laws if interests in the
   3-31  franchisor are publicly traded or, if they are not publicly traded,
   3-32  at the time such disclosure would be required if the interests in
   3-33  the franchisor were publicly traded.
   3-34        (h)  A transfer by a franchisee is deemed to be approved 30
   3-35  days after the franchisee submits the request for consent to the
   3-36  transfer unless the franchisor withholds consent to the transfer as
   3-37  evidenced in writing, specifying the reason or reasons for
   3-38  withholding the consent.  The written notice must be delivered to
   3-39  the franchisee prior to the expiration of the 30-day period.  Any
   3-40  such notice is privileged and is not actionable based on a claim of
   3-41  defamation.
   3-42        (i)  A franchisor shall not discriminate against a proposed
   3-43  transferee of a franchise on the basis of race, color, national
   3-44  origin, sex, or physical handicap.
   3-45        (j)  A franchisor, as a condition to a transfer of a
   3-46  franchise, shall not obligate a franchisee to undertake obligations
   3-47  or relinquish any rights unrelated to the franchise proposed to be
   3-48  transferred or to enter into a release of claims broader than a
   3-49  similar release of claims by the franchisor against the franchisee
   3-50  which is entered into by the franchisor.
   3-51        (k)  A franchisor, after a transfer of a franchise, shall not
   3-52  seek to enforce any covenant of the transferred franchise against
   3-53  the transferor which prohibits the transferor from engaging in any
   3-54  lawful occupation or enterprise.  However, this subsection does not
   3-55  prohibit the franchisor from enforcing against the transferor a
   3-56  contractual covenant not to exploit the franchisor's trade secrets
   3-57  or intellectual property rights, unless otherwise agreed to by the
   3-58  parties.
   3-59        (l)  For purposes of this section, "transfer" means any
   3-60  change in ownership or control of a franchise, franchised business,
   3-61  or a franchisee.
   3-62        (m)  The following occurrences shall not be considered
   3-63  transfers requiring the consent of the franchisor under a franchise
   3-64  agreement and shall not result in the imposition of any penalties
   3-65  or make applicable any right of first refusal by the franchisor:
   3-66              (1)  the succession of ownership of a franchise on the
   3-67  death or disability of a franchisee or of an owner of a franchise
   3-68  to the franchisee's spouse, child, or children or to a partner of
   3-69  the franchisee, unless the successor fails to meet the then
   3-70  reasonable, current qualifications of the franchisor for
    4-1  franchisees and the enforcement of the reasonable, current
    4-2  qualifications is not arbitrary or capricious when compared to
    4-3  actions of the franchisor in other similar circumstances;
    4-4              (2)  the succession of a spouse, child, partner, or
    4-5  other owner as operating manager on the death or disability of the
    4-6  operating manager, unless the successor fails to meet the then
    4-7  reasonable, current qualifications of the franchisor for an
    4-8  operating manager and enforcement of the reasonable, current
    4-9  qualifications is not arbitrary or capricious when compared to
   4-10  actions of the franchisor in other similar circumstances;
   4-11              (3)  incorporation of a proprietorship franchisee,
   4-12  provided that such incorporation does not prohibit a franchisor
   4-13  from requiring a personal guaranty by the franchisee of obligations
   4-14  related to the franchise;
   4-15              (4)  a transfer within an existing ownership group of a
   4-16  franchise, provided that more than 50 percent of the franchise is
   4-17  held by persons who meet the franchisor's reasonable, current
   4-18  qualifications for franchisees.  If less than 50 percent of the
   4-19  franchise would be owned by persons who meet the franchisor's
   4-20  reasonable, current qualifications, the franchisor may refuse to
   4-21  authorize the transfer, provided that enforcement of the
   4-22  reasonable, current qualifications is not arbitrary or capricious
   4-23  when compared to actions of the franchisor in other similar
   4-24  circumstances;
   4-25              (5)  a transfer of less than a controlling interest in
   4-26  the franchise to the franchisee's spouse or child or children,
   4-27  provided that more than 50 percent of the entire franchise is held
   4-28  by those who meet the franchisor's reasonable, current
   4-29  qualifications.  If less than 50 percent of the franchise would be
   4-30  owned by persons who meet the franchisor's reasonable, current
   4-31  qualifications, the franchisor may refuse to authorize the
   4-32  transfer, provided that enforcement of the reasonable, current
   4-33  qualifications is not arbitrary or capricious when compared to
   4-34  actions of other franchisors in other similar circumstances;
   4-35              (6)  a transfer of less than a controlling interest in
   4-36  the franchise of an employee stock ownership plan or employee
   4-37  incentive plan, provided that more than 50 percent of the entire
   4-38  franchise is held by those who meet the franchisor's reasonable,
   4-39  current qualifications for franchisees.  If less than 50 percent
   4-40  would be owned by persons who meet the franchisor's reasonable,
   4-41  current qualifications, the franchisor may refuse to authorize the
   4-42  transfer, provided that enforcement of the reasonable, current
   4-43  qualifications is not arbitrary or capricious when compared to
   4-44  actions of the franchisor in other similar circumstances; and
   4-45              (7)  a grant or retention of a security interest in the
   4-46  franchised business or its assets or an ownership interest in the
   4-47  franchisee, provided the security agreement establishes an
   4-48  obligation on the part of the secured party, enforceable by the
   4-49  franchisor, to give the franchisor notice of the secured party's
   4-50  intent to foreclose on the collateral simultaneously with notice to
   4-51  the franchisee and a reasonable opportunity to redeem the interests
   4-52  of the secured party and recover the collateral by paying the
   4-53  secured obligation.
   4-54        (n)  A franchisor shall not interfere or attempt to interfere
   4-55  with any disposition of an interest in a franchise or franchised
   4-56  business as described in Subsection (m) of this section.
   4-57        Sec. 20.07.  TERMINATION OR NONRENEWAL.  (a)  A franchisor
   4-58  may not terminate or fail to renew a franchise unless the
   4-59  franchisor has good cause for the termination or failure to renew.
   4-60  For purposes of this section, "good cause" is cause based on a
   4-61  legitimate business reason and shall include without limitation the
   4-62  failure of a franchisee to comply with lawful material provisions
   4-63  of the franchise or other agreement between the franchisor and the
   4-64  franchisee, provided that termination or failure to renew is not
   4-65  arbitrary or capricious when compared to the actions of the
   4-66  franchisor in other similar circumstances.
   4-67        (b)  Prior to termination of a franchise for good cause, a
   4-68  franchisor shall provide a franchisee with at least 60 days written
   4-69  notice stating the basis for the proposed termination.  After
   4-70  service of written notice, the franchisee shall have a reasonable
    5-1  period of time to cure the default, which in no event shall be less
    5-2  than 30 days.  If the franchisee's default can not reasonably be
    5-3  cured in 30 days, the franchisee must demonstrate substantial and
    5-4  continuing action toward cure of the default in order to avoid
    5-5  termination.
    5-6        (c)  Prior to the failure to renew a franchise for good
    5-7  cause, a franchisor shall provide a franchisee with at least 180
    5-8  days written notice stating the basis for the proposed failure to
    5-9  renew.  After service of written notice, the franchisee shall have
   5-10  a reasonable period of time to cure the default, which in no event
   5-11  shall be less than 60 days.  If the franchisee's default can not
   5-12  reasonably be cured in 60 days, the franchisee must demonstrate
   5-13  substantial and continuing action toward cure of the default in
   5-14  order to avoid the failure to renew.
   5-15        (d)  Notwithstanding Subsection (b) of this section, a
   5-16  franchisor may terminate a franchise on written notice and without
   5-17  giving the franchisee an opportunity to cure if any of the
   5-18  following apply:
   5-19              (1)  the franchisee or the business to which the
   5-20  franchise relates is declared bankrupt or is judicially determined
   5-21  to be insolvent;
   5-22              (2)  the franchisee voluntarily abandons the franchise
   5-23  by failing to operate the business for five consecutive business
   5-24  days during which the franchisee is required to operate the
   5-25  business under the terms of the franchise, or any shorter period
   5-26  after which it is not unreasonable under the facts and
   5-27  circumstances for the franchisor to conclude that the franchisee
   5-28  does not intend to continue to operate the franchise, unless the
   5-29  failure to operate is due to circumstances beyond the control of
   5-30  the franchisee;
   5-31              (3)  the franchisor and franchisee agree in writing to
   5-32  terminate the franchise;
   5-33              (4)  the franchisee knowingly makes any material
   5-34  misrepresentations or knowingly omits to state any material facts
   5-35  relating to the acquisition or ownership or operation of the
   5-36  franchised business;
   5-37              (5)  the franchisee wilfully fails to comply with the
   5-38  same material provision of a franchise agreement three separate
   5-39  times within a 12-month period, when the enforcement of the
   5-40  material provision by the franchisor is not arbitrary or capricious
   5-41  when compared to actions of the franchisor in other similar
   5-42  circumstances;
   5-43              (6)  the franchised business or business premises of
   5-44  the franchisee are lawfully seized, taken over, or foreclosed by a
   5-45  government authority or official;
   5-46              (7)  the franchisee is convicted of a felony or any
   5-47  other criminal misconduct which materially and adversely affects
   5-48  the operation, maintenance, or goodwill of the franchise in the
   5-49  relevant market; or
   5-50              (8)  the franchisee operates the franchised business in
   5-51  a manner that imminently endangers the public health and safety and
   5-52  fails to rectify the basis of the endangerment within 24 hours of
   5-53  notice from the franchisor specifying the hazard to be corrected.
   5-54        Sec. 20.08.  ENCROACHMENT.  A franchisor shall not establish
   5-55  a new point of sale of goods or services identified by the same
   5-56  name, brand, or advertising used by a franchisee in such proximity
   5-57  to the franchised business that the new point of sale causes a
   5-58  reduction in gross sales of the franchised business of eight
   5-59  percent or more in any month during the first 24 consecutive months
   5-60  after the new point of sale opens for business.  If a new point of
   5-61  sale causes a reduction in sales by the franchised outlet of eight
   5-62  percent or more, the franchisor shall:
   5-63              (1)  close the new point of sale;
   5-64              (2)  change the location or manner of operation of the
   5-65  new point of sale to mitigate its impact on the franchised business
   5-66  to diminish the diversion of sales to less than eight percent for
   5-67  each month during the first 24 consecutive months; or
   5-68              (3)  compensate the franchisee for lost sales caused by
   5-69  the new point of sale in an amount equal to the loss of sales in
   5-70  excess of eight percent for each month during the first 24
    6-1  consecutive months the new point of sale is open for business.
    6-2        Sec. 20.09.  SOURCES OF SUPPLIES AND SERVICES.  (a)  Except
    6-3  as provided by Subsection (b) of this section, a franchisee may
    6-4  obtain equipment, fixtures, supplies, and services used in the
    6-5  establishment and operation of the franchised business from sources
    6-6  of the franchisee's choosing if the goods and services meet
    6-7  reasonable standards adopted by the franchisor concerning the
    6-8  nature and quality of the goods and services.
    6-9        (b)  Subsection (a) of this section does not apply to
   6-10  reasonable quantities of inventory goods or services, including
   6-11  display and sample items, that the franchisor requires the
   6-12  franchisee to obtain from the franchisor or its affiliate, if the
   6-13  goods or services are a central feature of the franchised business
   6-14  and are:
   6-15              (1)  actually manufactured or produced by the
   6-16  franchisor or its affiliate; or
   6-17              (2)  manufactured solely for the account of the
   6-18  franchisor or its affiliate and incorporate a trade secret owned by
   6-19  the franchisor or its affiliate.
   6-20        Sec.  20.10.  RIGHT OF FREE ASSOCIATION; CRIMINAL OFFENSE;
   6-21  PENALTY.  (a)  A franchisor commits an offense if the franchisor:
   6-22              (1)  restricts or inhibits or attempts to restrict or
   6-23  inhibit, directly or indirectly, the right of a franchisee to seek
   6-24  legislative redress or to associate freely with other franchisees
   6-25  for any lawful purpose; or
   6-26              (2)  retaliates against a franchisee for seeking
   6-27  legislative redress or participating in a trade association for a
   6-28  lawful purpose.
   6-29        (b)  An offense under this section is a Class A misdemeanor.
   6-30        Sec. 20.11.  COVENANTS NOT TO COMPETE.  (a)  Notwithstanding
   6-31  Subchapter E, Chapter 15, of this code, a franchisor may not
   6-32  prohibit a franchisee from engaging in any lawful business at any
   6-33  location after termination or expiration of a franchise, under an
   6-34  expired franchise or any other contract, unless 10 or more days
   6-35  before the effective date of the termination or expiration the
   6-36  franchisor offers in writing to purchase the franchised business
   6-37  for its fair market value as a going concern without regard to
   6-38  termination or expiration.  The offer may be conditioned on
   6-39  ascertainment of fair market value by an impartial appraiser.
   6-40        (b)  This section does not prohibit enforcement of a
   6-41  provision of a franchise obligating a franchisee after termination
   6-42  or expiration of the franchise to:
   6-43              (1)  alter the appearance of the premises and the
   6-44  manner of operation of the franchised business to avoid the
   6-45  likelihood of confusion  as to the affiliation of the business with
   6-46  its former franchisor or the origin of goods or services it offers;
   6-47  or
   6-48              (2)  refrain from using a trade secret of the
   6-49  franchisor or its affiliate.
   6-50        Sec. 20.12.  PRICING COERCION.  A franchisor may not fix or
   6-51  maintain the price at which a franchisee may sell goods or services
   6-52  under the franchise, nor may a franchisor coerce a franchisee into
   6-53  selling goods or services under the franchise at a certain price.
   6-54        Sec. 20.13.  CHOICE OF LAW.  The law of this state applies in
   6-55  all actions and proceedings concerning a franchise for which the
   6-56  franchisee's business is located in this state.
   6-57        Sec. 20.14.  JUDICIAL REMEDIES.  (a)  If a franchisor or
   6-58  franchisee violates this chapter and the matter is not submitted to
   6-59  arbitration, the aggrieved party may maintain a civil action in a
   6-60  court in the county in which the franchisee's franchised outlet is
   6-61  located.  If the franchisee has outlets in more than one county,
   6-62  the action must be brought in a county in which an outlet relating
   6-63  to the violation or disagreement is located.
   6-64        (b)  In an action under Subsection (a) of this section, the
   6-65  court may grant any relief the court determines necessary or
   6-66  appropriate considering the purposes of this chapter, including
   6-67  specific performance.
   6-68        (c)  The prevailing party in an action under Subsection (a)
   6-69  of this section is entitled to actual damages, which may include
   6-70  the value of the franchisee's business as determined by an
    7-1  independent appraiser, reasonable attorney fees, and court costs.
    7-2        Sec.  20.15.  REMEDY FOR FRANCHISOR'S FAILURE TO COMPLY WITH
    7-3  FEDERAL TRADE COMMISSION DISCLOSURE REQUIREMENTS.  A franchisee or
    7-4  prospective franchisee who is injured as a consequence of a
    7-5  franchisor's failure to comply with the requirements of the United
    7-6  States Federal Trade Commission trade regulation rule entitled
    7-7  "Disclosure Requirements and Prohibitions Concerning Franchising
    7-8  and Business Opportunity Ventures" (16 C.F.R. Part 436), as now
    7-9  established or hereafter amended, may bring an action for damages,
   7-10  or other appropriate relief, together with costs and attorney fees.
   7-11        SECTION 2.  This Act applies to a franchise, as defined by
   7-12  Section 20.02, Business & Commerce Code, as added by this Act, for
   7-13  a fast food restaurant that is entered into, renewed, amended, or
   7-14  replaced before, on, or after the effective date of this Act, but
   7-15  this Act does not apply to acts, omissions, or transactions
   7-16  concluded before the effective date of this Act.
   7-17        SECTION 3.  The importance of this legislation and the
   7-18  crowded condition of the calendars in both houses create an
   7-19  emergency and an imperative public necessity that the
   7-20  constitutional rule requiring bills to be read on three several
   7-21  days in each house be suspended, and this rule is hereby suspended,
   7-22  and that this Act take effect and be in force from and after its
   7-23  passage, and it is so enacted.
   7-24                               * * * * *
   7-25                                                         Austin,
   7-26  Texas
   7-27                                                         February 3, 1993
   7-28  Hon. Bob Bullock
   7-29  President of the Senate
   7-30  Sir:
   7-31  We, your Committee on Economic Development to which was referred
   7-32  S.B. No. 195, have had the same under consideration, and I am
   7-33  instructed to report it back to the Senate with the recommendation
   7-34  that it do pass and be printed.
   7-35                                                         Parker,
   7-36  Chairman
   7-37                               * * * * *
   7-38                               WITNESSES
   7-39                                                  FOR   AGAINST  ON
   7-40  ___________________________________________________________________
   7-41  Name:  Andrew Selden                                           x
   7-42  Representing:  Taco Bell Franchisees
   7-43  City:  Minneapolis, MN
   7-44  -------------------------------------------------------------------
   7-45  Name:  Valentine Hahn                            x
   7-46  Representing:  Hahn Enterprises
   7-47  City:  El Paso, TX
   7-48  -------------------------------------------------------------------
   7-49  Name:  Gary Salomon                                      x
   7-50  Representing:  American Fastsigns & TCRF
   7-51  City:  Dallas, TX
   7-52  -------------------------------------------------------------------
   7-53  Name:  Joyce Mazero                                      x
   7-54  Representing:  TX Coalition for Resp.
   7-55      Franch
   7-56  City:  Dallas, TX
   7-57  -------------------------------------------------------------------
   7-58  Name:  Larry Durrett                             x
   7-59  Representing:  Self
   7-60  City:  Jacksonville
   7-61  -------------------------------------------------------------------
   7-62  Name:  Steve Simmons                                     x
   7-63  Representing:  Jason's Deli
   7-64  City:  Beaumont
   7-65  -------------------------------------------------------------------
   7-66  Name:  Ron Bellamy                               x
   7-67  Representing:  Self
   7-68  City:  Wichita Falls
   7-69  -------------------------------------------------------------------
   7-70  Name:  Patrick Flanagan                                  x
    8-1  Representing:  Taco Bell, Inc.
    8-2  City:  California
    8-3  -------------------------------------------------------------------
    8-4                                                  FOR   AGAINST  ON
    8-5  ___________________________________________________________________
    8-6  Name:  Stephen Hammerstein                               x
    8-7  Representing:  Kwik Kopy Corp.
    8-8  City:  Houston, TX
    8-9  -------------------------------------------------------------------
   8-10  Name:  Fred Ahle                                         x
   8-11  Representing:  Kwik Kopy
   8-12  City:  Longview
   8-13  -------------------------------------------------------------------
   8-14  Name:  Robert Enochs                                     x
   8-15  Representing:  Kwik Kopy
   8-16  City:  Austin
   8-17  -------------------------------------------------------------------
   8-18  Name:  Jeff Rogers                                       x
   8-19  Representing:  Pizza Inn, Inc.
   8-20  City:  Dallas
   8-21  -------------------------------------------------------------------
   8-22  Name:  J. Michael Jenkins                                x
   8-23  Representing:  El Chico Rest., Inc.
   8-24  City:  Dallas
   8-25  -------------------------------------------------------------------
   8-26  Name:  James Amos                                        x
   8-27  Representing:  Brice Foods, Inc.
   8-28  City:  Plano
   8-29  -------------------------------------------------------------------
   8-30  Name:  Fred Addington                                    x
   8-31  Representing:  I Can't Believe Its Yogurt
   8-32  City:  Dallas
   8-33  -------------------------------------------------------------------
   8-34  Name:  David Short                                       x
   8-35  Representing:  Roma Corp.
   8-36  City:  Dallas
   8-37  -------------------------------------------------------------------
   8-38  Name:  Victor Erwin                                      x
   8-39  Representing:  Golden Fried Chicken
   8-40  City:  Dallas
   8-41  -------------------------------------------------------------------
   8-42  Name:  Kelly Arnold                                      x
   8-43  Representing:  Schlotzsky's
   8-44  City:  Austin
   8-45  -------------------------------------------------------------------
   8-46  Name:  J. Paul Langton                                   x
   8-47  Representing:  Biz Pro Mgt. Consult
   8-48  City:  Pearland
   8-49  -------------------------------------------------------------------
   8-50  Name:  Duane Thompson                                    x
   8-51  Representing:  International Franchise
   8-52      Assn.
   8-53  City:  Washington, D.C.
   8-54  -------------------------------------------------------------------
   8-55  Name:  Joe Compian                                       x
   8-56  Representing:  Remax of TX
   8-57  City:  Sugarland
   8-58  -------------------------------------------------------------------
   8-59  Name:  Ben Litalien                                      x
   8-60  Representing:  International Flying Colors
   8-61  City:  Houston
   8-62  -------------------------------------------------------------------
   8-63  Name:  Ken McGruder                              x
   8-64  Representing:  K Mac Ent.
   8-65  City:  Texarkana
   8-66  -------------------------------------------------------------------
   8-67  Name:  Dick Upshaw                               x
   8-68  Representing:  Up Enterprise
   8-69  City:  Tyler
   8-70  -------------------------------------------------------------------
    9-1  Name:  Joe Upshaw                                x
    9-2  Representing:  Up Enterprises
    9-3  City:  Whitehouse
    9-4  -------------------------------------------------------------------
    9-5                                                  FOR   AGAINST  ON
    9-6  ___________________________________________________________________
    9-7  Name:  Richard Breakie                           x
    9-8  Representing:  Self
    9-9  City:  San Antonio
   9-10  -------------------------------------------------------------------
   9-11  Name:  Larry Hahn                                x
   9-12  Representing:  Self
   9-13  City:  El Paso
   9-14  -------------------------------------------------------------------
   9-15  Name:  Walter Campbell                           x
   9-16  Representing:  Self
   9-17  City:  Mansfield
   9-18  -------------------------------------------------------------------
   9-19  Name:  David Ohre                                x
   9-20  Representing:  Self
   9-21  City:  Abilene
   9-22  -------------------------------------------------------------------
   9-23  Name:  Jon Dyer                                  x
   9-24  Representing:  K Mac Ent.
   9-25  City:  Mt. Pleasant
   9-26  -------------------------------------------------------------------
   9-27  Name:  Jeffery Lawlor                                    x
   9-28  Representing:  McDonalds
   9-29  City:  Austin
   9-30  -------------------------------------------------------------------
   9-31  Name:  Michael Donahue                                   x
   9-32  Representing:  McDonalds
   9-33  City:  Oak Brook, IL.
   9-34  -------------------------------------------------------------------