BILL ANALYSIS


                                                        H.B. 1885
                                          By: Rhodes (Armbrister)
                                             Economic Development
                                                          5-24-95
                              Senate Committee Report (Unamended)
BACKGROUND

Currently, Article 5069-13.01 et seq., V.T.C.S. (Home Solicitation
Act) 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

As proposed, H.B. 1885 provides for solicitation transactions that
take place outside a merchant's place of business.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1, Article 5069-13.01, V.T.C.S., by
amending Subdivision (5) and adding Subdivision (6), as follows:

     (5) Redefines "home solicitation transaction" to include a
     consumer transaction for the purchase of goods in which the
     merchant engages in a personal solicitation of the sale to the
     consumer at a place other than the merchant's place of
     business, rather than a residence. Makes conforming changes.
     
     (6) Defines "place of business" to mean a merchant's main or
     permanent branch office or local address. Provides that in the
     case of a state or national bank or savings and loan
     association, "place of business" includes any approved branch
     and any registered loan production office.
     
     SECTION 2.     Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 1995.

SECTION 4. Severability clause.

SECTION 5. Emergency clause.