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.