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.