BILL ANALYSIS



H.B. 1885
By: Rhodes
4-18-95
Committee Report (Amended)


BACKGROUND

Currently, the Home Solicitation Act (Article 5069-13.01 et seq.,
Revised Statutes) applies to consumer transactions for the purchase
of goods or realty only if the transaction takes place at the
consumer's residence or at the merchant's residence.  The statute
does not cover transactions that take place in rented hotel rooms,
restaurant parties, and other types of home parties.  Consequently,
unscrupulous merchants and salespeople who run fly-by-night
operations at rented temporary locations cannot be prosecuted under
the Home Solicitation Act.   

PURPOSE

To provide for coverage of consumer transactions that take place
outside a consumer's residence or a merchant's residence under the
Home Solicitation Act.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

     SECTION 1.  Amends Article 5069-13.01, Revised Statutes, by
amending Subdivision (5) and adding Subdivision (6).

     Subdivision (5), Article 5069-13.01.  (A) Clarifies definition
of "home solicitation transaction" for the purchase of goods and
realty to cover transactions that occur at places other than a
merchant's place of business.   

     Subdivision (6), Article 5069-13.01.  Defines "place of
business" as a merchant's main or permanent branch office or local
address, including any approved branch and any registered loan
production office.

     SECTION 2.  This Act applies only to violations that take
place on or after the effective date of this Act. A criminal
defense committed before the effective date of this Act is governed
by the law in effect when the crime was committed.

     SECTION 3.  The effective date of this Act is September 1,
1995.

     SECTION 4.  Severability clause.

     SECTION 5.  Emergency clause.


EXPLANATION OF AMENDMENTS

The committee amendment strikes Section 1, Subsection 6 in its
entirety and replaces it with the definition of "place of business"
meaning a merchant's main or permanent branch office or local
address, including any approved branch and any registered loan
production office.

SUMMARY OF COMMITTEE ACTION

The Business and Industry Committee considered H.B. 1885 in a
public hearing on April 18, 1995.  The following witness testified
for H.B. 1885:  Gayle Vickers, representing Texas Bankers
Association.  The following witnesses testified on H.B. 1885: 
Pamela Perkins, representing the  Office of Attorney General; and
Leslie Pettijohn, representing Office of Consumer Credit
Commissioner.  The committee considered 1 (one) amendment to H.B.
1885.  The 1 (one) amendment was adopted without objection.  H.B.
1885, as amended, was reported favorably with the recommendation
that it do pass and be printed and be sent to the Committee on
Local and Consent Calendars, by a record vote of 7 (seven) ayes, 0
(zero) nays, 0 (zero) present-not-voting, 2 (two) absent.