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.