BILL ANALYSIS


                                                     C.S.S.B. 827
                                                   By: Armbrister
                                             Economic Development
                                                          4-21-95
                                   Committee Report (Substituted)
BACKGROUND

The Home Solicitation Act applies to consumer transactions for the
purchase of goods or realty that take place at the consumer's or
merchant's residence.  Transactions that take place in rented hotel
rooms, restaurant parties, and other types of home parties are not
covered under this Act.  As a result, merchants and salespersons
running "fly-by-night" operations at temporarily rented locations
cannot be prosecuted.

PURPOSE

As proposed, C.S.S.B. 827 redefines "home solicitation transaction"
by making the personal solicitation of the sale to a consumer at a
place other than the merchant's place of business, rather than at
a residence.  Defines "place of business" to mean the main or
permanent branch office or local address of a merchant.

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" by making the
     personal solicitation of the sale to the consumer at a place
     other than the merchant's place of business, rather than at a
     residence.  Makes conforming changes.
     (6) Defines "place of business" to mean the main or permanent
     branch office or local address of a merchant.  Provides that
     the term includes an approved branch and a registered loan
     production office for a state or national bank or state or
     federal savings and loan association.
SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 1995.

SECTION 4. Emergency clause.