By Coleman                                            H.B. No. 1347
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the registration and reporting by commercial solicitors
    1-3  and restrictions on charitable solicitation.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Title 9, Property Code, is amended by adding
    1-6  Chapter 125 to read as follows:
    1-7        CHAPTER 125.  REGISTRATION AND REPORTING BY COMMERCIAL
    1-8                             SOLICITORS.
    1-9        Sec. 125.001.  SCOPE OF ACT; SHORT TITLE.  (a)  Except as
   1-10  provided by this chapter, this chapter applies to all commercial
   1-11  solicitors created, organized, or doing business in Texas and to
   1-12  all persons who solicit contributions without consent by charitable
   1-13  organizations.  In addition to other acts that may constitute doing
   1-14  business in Texas, the solicitation of contributions from persons
   1-15  in Texas shall be considered to be doing business in Texas,
   1-16  regardless of where the solicitation originates.
   1-17        (b)  This chapter may be cited as the Commercial Solicitors
   1-18  Registration and Reporting Act.
   1-19        (c)  This chapter does not apply to organizations subject to
   1-20  Article 9023b or Article 9023c, Revised Statutes.
   1-21        Sec. 125.002.  CONSTRUCTION AND APPLICATION.  This chapter
   1-22  shall be applied to promote its underlying purposes, which are to
   1-23  prevent misleading fundraising practices and to provide information
    2-1  through public awareness and donor education.
    2-2        Sec. 125.003.  DEFINITIONS.  In this chapter and for purposes
    2-3  of this chapter only:
    2-4        (a)  "Charitable organization" means
    2-5              (1)  a person who is exempt or has applied for
    2-6  exemption from federal income tax under Section 501(c)(3) of the
    2-7  Internal Revenue Code of 1986; or
    2-8              (2)  a person who solicits contributions and is exempt
    2-9  or has applied for exemption from federal income tax under Sections
   2-10  501(c)(4) or 501(c)(10) of the Internal Revenue Code of 1986; or
   2-11              (3)  any other person who solicits contributions and is
   2-12  or holds himself, herself, or itself out to be established or
   2-13  operating for a charitable purpose, except for commercial
   2-14  coventurers and volunteers that have been authorized to solicit on
   2-15  behalf of a charitable organization which has registered in
   2-16  accordance with the provisions of this Act.
   2-17        (b)  "Charitable purpose" means (1) any purpose described in
   2-18  Section 501(c)(3) of the Internal Revenue Code of 1986; or (2) the
   2-19  provision of assistance to needy individuals.
   2-20        (c)  "Commercial Solicitor" means any person who is retained
   2-21  by a charitable organization to solicit contributions, whether such
   2-22  solicitation is done individually or through other persons under
   2-23  the direction of the commercial solicitor.  No fundraising counsel
   2-24  shall be deemed a commercial solicitor.  No bona fide employee,
   2-25  officer, director, or volunteer of a charitable organization shall
    3-1  be deemed to be a commercial solicitor.  No person who advises
    3-2  another person to make a charitable contribution shall be deemed,
    3-3  as the result of such advice, to be a commercial solicitor.
    3-4        (d)  "Contribution" means the promise to give or gift of
    3-5  money, credit, property, financial assistance, or other thing of
    3-6  any kind or value, except for volunteer services.  It does not
    3-7  include bona fide fees, dues or assessments paid by members,
    3-8  provided that membership is not conferred solely as consideration
    3-9  for making a contribution in response to a solicitation.
   3-10        (e)  "Person" means an individual, partnership, corporation,
   3-11  association, or other entity, however organized.
   3-12        (f)  "Solicit" and "solicitation" mean:
   3-13              (1)  The direct or indirect request for a contribution
   3-14  on the plea or representation that the contribution, or any portion
   3-15  thereof, will be used for a charitable purpose or to benefit a
   3-16  charitable organization.  A solicitation shall be deemed to have
   3-17  taken place whether or not the person making the solicitation
   3-18  receives any contribution.  Without limiting the scope of the
   3-19  foregoing, these words shall include the following method of
   3-20  requesting contributions:
   3-21                    (A)  any oral or written request;
   3-22                    (B)  publicizing a request in newspapers, on the
   3-23  radio or television, or by any telecommunications device or other
   3-24  manner of transmitting information to the public;
   3-25                    (C)  the distribution, circulation, posting or
    4-1  publishing of any handbill, written advertisement or other
    4-2  publications;
    4-3                    (D)  offering for sale any advertisement, book,
    4-4  card, coupon, ticket, membership, merchandise, subscription,
    4-5  flower, candy or other tangible item if any appeal is made for any
    4-6  charitable organization or charitable purpose, or if the name of
    4-7  any charitable organization is used or referred to in the appeal as
    4-8  an inducement or reason for making the sale, or where any statement
    4-9  is made that the whole or any part of the proceeds from the sale
   4-10  will be used for any charitable purpose or to benefit any
   4-11  charitable organization; or
   4-12                    (E)  the use or employment of canisters, cards,
   4-13  receptacles or similar devices for the collection of money or other
   4-14  things of value in connection with which any appeal is made for any
   4-15  charitable organization or charitable purpose.
   4-16              (2)  The words "solicit" and "solicitation" shall not
   4-17  include a request for contributions by a charitable organization
   4-18  made solely to its current and former trustees, officers,
   4-19  directors, members, employees, students, advisory boards or
   4-20  volunteers.
   4-21        (g)  "Knowingly" means with actual awareness, but actual
   4-22  awareness may be inferred where object manifestations indicate that
   4-23  a person acted with actual awareness.
   4-24        (h)  "Commercial coventurer" means any person who for profit
   4-25  regularly and primarily is engaged in trade or commerce other than
    5-1  in connection with soliciting for charitable organizations or
    5-2  charitable purposes and who conducts a charitable sales promotion.
    5-3        (i)  "Charitable sales promotion" means any advertising or
    5-4  sale conducted by a person who represents that the purchase or use
    5-5  of goods or services offered by the person will benefit, in whole
    5-6  or in part, any charitable organization or charitable purpose.  The
    5-7  provision of advertising services to a charitable organization,
    5-8  either for compensation or as a donation, does not of itself
    5-9  constitute a charitable sales promotion.
   5-10        (j)  "Fundraising counsel" means any person who for
   5-11  compensation consults with a charitable organization or who plans,
   5-12  manages, advises or assists with respect to the solicitation of
   5-13  contributions for or on behalf of a charitable organization, but
   5-14  who does not have custody and control over contributions or other
   5-15  receipts from a solicitation or authority to pay expenses
   5-16  associated with a solicitation and who does not solicit or employ,
   5-17  procure or engage any compensated person to solicit contributions.
   5-18  A bona fide officer, volunteer, or employee of a charitable
   5-19  organization shall not be deemed a fundraising counsel.
   5-20        Sec. 125.004.  REGISTER TO BE MAINTAINED.  (a)  The attorney
   5-21  general shall establish and maintain a register of commercial
   5-22  solicitors subject to this chapter.
   5-23        (b)  Except as otherwise provided herein, all documents
   5-24  required to be filed with the attorney general under this chapter
   5-25  shall be public information and shall be available to the public
    6-1  pursuant to the Open Records Act, Chapter 552, Government Code,
    6-2  except those documents which identify the donors of a charitable
    6-3  organization, which information is confidential and shall not be
    6-4  subject to disclosure.
    6-5        Sec. 125.005.  REGISTRATION.  (a)  No commercial solicitor
    6-6  may solicit contributions in Texas unless the commercial solicitor
    6-7  has fully complied with the requirements of this chapter
    6-8        (b)  By January 1, 1996 for commercial solicitors doing
    6-9  business in Texas on the effective date of this Act, or at least 10
   6-10  working days before beginning new solicitations in Texas after the
   6-11  effective date of this Act, a commercial solicitor shall do all of
   6-12  the following:
   6-13              (1)  submit to the attorney general a completed
   6-14  registration statement, on a form prescribed or approved by the
   6-15  attorney general, that contains all of the following:
   6-16                    (A)  the legal name and any other names used by
   6-17  the commercial solicitor, and its federal employer identification
   6-18  number or social security number;
   6-19                    (B)  the street address(es), mailing address(es),
   6-20  telephone number(s) and facsimile number(s) for all offices of the
   6-21  commercial solicitor;
   6-22                    (C)  the date and state of incorporation of the
   6-23  commercial solicitor, or, if the commercial solicitor is not
   6-24  incorporated, the type of organization it is, the state in which it
   6-25  was formed and date it was formed;
    7-1                    (D)  a list of charitable organizations for which
    7-2  solicitation is planned or ongoing for the year of registration,
    7-3  providing their legal names and any other names they use,
    7-4  address(es), and telephone number(s);
    7-5                    (E)  a statement as to whether the commercial
    7-6  solicitor or any of its directors, officers, agents, or employees
    7-7  has been enjoined by a government agency or court from soliciting,
    7-8  has had its registration denied or revoked, has been the subject of
    7-9  any court or administrative proceeding regarding any solicitation
   7-10  or registration, and/or entered into a voluntary agreement of
   7-11  compliance.  The statement shall include a description of each
   7-12  proceeding, the state in which the proceeding occurred, the name of
   7-13  the agency or court that presided over the proceeding, the date of
   7-14  the proceeding, and the ultimate outcome of the proceeding;
   7-15                    (F)  a list of all agencies and states where the
   7-16  commercial solicitor is registered or has been registered,
   7-17  including dates of registration, registration numbers, any other
   7-18  names under which the commercial solicitor was or is registered and
   7-19  the dates and types of solicitation conducted in each such state
   7-20  during the past year;
   7-21                    (G)  a statement that the commercial solicitor
   7-22  has complied with all applicable Texas county and municipal
   7-23  ordinances regarding solicitation, or, if none apply, a statement
   7-24  to that effect;
   7-25                    (H)  the names, street addresses, and telephone
    8-1  numbers of the owners, officers, directors, and chief operating
    8-2  officers of the commercial solicitor;
    8-3                    (I)  a statement as to whether any owner,
    8-4  officer, director, or employee has ever been convicted of or
    8-5  pleaded nolo contendere to a misdemeanor involving fraud or the
    8-6  theft, misappropriation, misapplication, or misuse of property of
    8-7  another, or of any felony, including the offense and the state,
    8-8  court, and date of each conviction or plea of nolo contendere;
    8-9                    (J)  the names of all individuals responsible for
   8-10  custody or control of funds, distribution of funds, custody of
   8-11  records, or authorized to sign checks and/or to make withdrawals;
   8-12                    (K)  a statement that the charitable
   8-13  organization(s) for which it is soliciting contributions is
   8-14  registered pursuant to Chapter 124, Property Code; and
   8-15                    (L)  a sworn statement by the commercial
   8-16  solicitor or an owner, officer or director of the commercial
   8-17  solicitor that the information included in the registration
   8-18  statement is true, correct, and complete.
   8-19              (2)  File with the attorney general a bond that meets
   8-20  the requirements of Sec. 125.006.
   8-21              (3)  Pay to the attorney general a $250 registration
   8-22  fee.
   8-23              (4)  Comply with the provisions of Sec. 125.007.
   8-24        (c)  Registration statements expire one year from the date of
   8-25  filing.  Renewal registration statements shall be submitted to the
    9-1  attorney general on the same forms required for initial
    9-2  registration statements on or before the expiration date.  In order
    9-3  to renew registration, commercial solicitors shall include:
    9-4              (1)  any changes in the registration statement
    9-5  previously provided to the attorney general or a statement that
    9-6  there are no changes for the items on which there are no changes
    9-7  from the prior year;
    9-8              (2)  a $250 renewal fee; and
    9-9              (3)  evidence satisfactory to the attorney general that
   9-10  the commercial solicitor maintains a bond that meets the
   9-11  requirements of Sec. 125.006.
   9-12        (d)  Commercial solicitors that are not in compliance with
   9-13  the provisions of this chapter shall be notified of noncompliance
   9-14  by the attorney general by first class mail at the commercial
   9-15  solicitor's last reported address.  Noncompliance shall include
   9-16  failure to file any documents required by this chapter or the
   9-17  filing of incomplete or inaccurate documents.  A commercial
   9-18  solicitor shall be deemed to be in violation of this chapter if it
   9-19  fails to correct any deficiency in the registration statement, bond
   9-20  or fee within thirty days of the date the notice of deficiency is
   9-21  mailed, or if it knowingly files inaccurate documents.
   9-22        Sec. 125.006.  BOND.  At the time of filing a registration
   9-23  statement, a commercial solicitor shall file with the attorney
   9-24  general a bond in which the commercial solicitor is the principal
   9-25  obligor, in the sum $25,000, with one or more responsible sureties
   10-1  whose liability in the aggregate as sureties at least equals that
   10-2  sum.  The commercial solicitor shall maintain the bond as long as
   10-3  the registration is in effect.  The bond, which may be in the form
   10-4  of a rider to a larger blanket liability bond, shall run to the
   10-5  state and to any person who may have a cause of action against the
   10-6  commercial solicitor for any liabilities arising out of a violation
   10-7  of this chapter or the rules promulgated under this chapter.
   10-8        Sec. 125.007.  SOLICITATION NOTICE.  At least ten working
   10-9  days before soliciting on behalf of a charitable organization, a
  10-10  commercial solicitor shall file with the attorney general the
  10-11  written contract required by Sec. 125.008, a filing fee of $50.00
  10-12  and a completed solicitation notice, on a form prescribed or
  10-13  approved by the attorney general, that includes all of the
  10-14  following information that is not explicitly  included in the
  10-15  written contract:
  10-16        (a)  the estimated amount and method of calculation of
  10-17  compensation and expenses to be paid to or by the commercial
  10-18  solicitor under the contract described in Sec. 125.008;
  10-19        (b)  the type(s) of solicitation to be conducted and the
  10-20  projected period during which the solicitation will take place;
  10-21        (c)  the street address(es) and telephone number(s) from
  10-22  which the solicitation will be conducted;
  10-23        (d)  the name and street address of each person responsible
  10-24  for supervising the services provided by the commercial solicitor
  10-25  under the contract described in Sec. 125.008;
   11-1        (e)  a statement as to whether the commercial solicitor will
   11-2  at any time  have custody or control of contributions, and if not,
   11-3  a statement identifying by name and street address, the person who
   11-4  will have custody or control of contributions;
   11-5        (f)  a complete description of the charitable purpose or
   11-6  purposes for which solicitations will be made;
   11-7        (g)  a statement as to whether any officer, director,
   11-8  partner, employee, or owner of more than 10% of the commercial
   11-9  solicitor, or a relative of any of  them, has in any way been
  11-10  affiliated with or in control of the charitable organization which
  11-11  is the subject of the solicitation, directly or indirectly;
  11-12        (h)  a statement as to whether any officer, director,
  11-13  trustee, member, or employee of the charitable organization which
  11-14  is the subject of the solicitation, or a relative of any of them,
  11-15  has in any way been affiliated with or in  control of the
  11-16  commercial solicitor, directly or indirectly;
  11-17        (i)  a sworn statement by an owner, officer or director of
  11-18  the commercial solicitor that the information included in the
  11-19  solicitation notice is true, correct and complete; and
  11-20        (j)  written confirmation from the charitable organization on
  11-21  whose behalf the commercial solicitor is acting that the
  11-22  information contained in the solicitation notice is true, correct
  11-23  and complete to the best of organization's knowledge.
  11-24        Sec. 125.008.  CONTRACT.  A commercial solicitor shall enter
  11-25  into a written contract with every charitable organization for
   12-1  which it solicits that states the respective obligations of the
   12-2  commercial solicitor and the charitable organization.  The contract
   12-3  shall state the amount of the compensation that the commercial
   12-4  solicitor will receive.  The compensation shall be expressed either
   12-5  as (a) a fixed percentage of the gross revenue, (b) an hourly or
   12-6  other fee based on specific services to be provided or (c) a dollar
   12-7  amount.  Any expenses to be paid by the charitable organization
   12-8  shall be set forth in the contract.
   12-9        Sec. 125.009.  REPORTING CHANGES.  Within ten days after any
  12-10  material change occurs in any solicitation notice or contract filed
  12-11  with the attorney general under Section 125.007, the commercial
  12-12  solicitor shall report the change, in writing, to the attorney
  12-13  general.
  12-14        Sec. 125.010.  FINANCIAL REPORT.  Within 90 days after
  12-15  completing services under a contract described in Sec. 125.008 and
  12-16  within 90 days after the close of the commercial solicitor's fiscal
  12-17  year for any contract described under Sec. 125.008 which is in
  12-18  effect more than one year, the commercial solicitor shall account
  12-19  in writing to the charitable organization for all contributions
  12-20  received by the commercial solicitor and details regarding all
  12-21  compensation and expenses charged by the commercial solicitor to
  12-22  the charitable organization under the contract, and shall file such
  12-23  accounting with the attorney general.
  12-24        Sec. 125.011.  DEPOSITING CONTRIBUTIONS.  A commercial
  12-25  solicitor shall deposit all monetary contributions it receives on
   13-1  behalf of a charitable organization in an account at a financial
   13-2  institution within five days after receipt.  The charitable
   13-3  organization shall have sole control of all withdrawals from the
   13-4  account.
   13-5        Sec. 125.012.  RECORD KEEPING.  During the period in which a
   13-6  contract described in Sec. 125.008, is in effect and for not less
   13-7  than three years after its completion, a commercial solicitor shall
   13-8  keep and retain true books and records as to its activities within
   13-9  the state in such form as will enable it to accurately provide the
  13-10  information required by this chapter, including, but not limited to
  13-11  the following records:
  13-12        (a)  the date and amount of the contribution and, if known,
  13-13  the name and address of each person contributing;
  13-14        (b)  the name and street address of each employee or agent
  13-15  involved in the solicitation;
  13-16        (c)  a record of all contributions that are at any time in
  13-17  the custody or control of the commercial solicitor;
  13-18        (d)  a record of all expenses incurred by the commercial
  13-19  solicitor that the charitable organization is required to pay or
  13-20  the commercial solicitor pays on behalf of the charitable
  13-21  organization; and
  13-22        (e)  a record of the location and account number of each
  13-23  financial institution account in which the commercial solicitor
  13-24  deposits contributions.
  13-25        Sec. 125.013.  PROHIBITED SOLICITATIONS.  (a)  No person
   14-1  shall solicit contributions on behalf of a charitable organization
   14-2  without prior written consent from the charitable organization.
   14-3        (b)  A charitable organization and/or the attorney general
   14-4  may institute an action against any person who solicits
   14-5  contributions in violation of this section unless this right is
   14-6  waived in writing by the charitable organization after the
   14-7  violation occurs.
   14-8        (c)  Commercial solicitors and those employed or engaged to
   14-9  solicit by or for them shall disclose their status as paid
  14-10  solicitors in all oral and written solicitations.  No commercial
  14-11  solicitor or person employed or engaged to solicit by or for them
  14-12  shall solicit on behalf of a charitable organization without making
  14-13  such disclosure.
  14-14        (d)  The remedy established in this section is in addition to
  14-15  and does not limit any other statutory or common law remedies
  14-16  available to the attorney general.
  14-17        Sec. 125.014.  COMMERCIAL SOLICITORS DEEMED TO BE ACTING IN A
  14-18  FIDUCIARY CAPACITY.  Every commercial solicitor and every person
  14-19  employed or engaged by or for a commercial solicitor to solicit
  14-20  contributions shall be deemed to be acting in a fiduciary capacity
  14-21  with respect to contributions they solicit.
  14-22        Sec. 125.015.  COMMERCIAL COVENTURERS.  Prior to the
  14-23  commencement of any charitable sales promotion in this state
  14-24  conducted by a commercial coventurer, the commercial coventurer
  14-25  shall obtain the written consent of the charitable organization(s)
   15-1  whose name(s) will be used during the charitable sales promotion.
   15-2        Sec. 125.016.  AUDIT POWERS OF THE ATTORNEY GENERAL.  (a)
   15-3  The commercial solicitor shall make all records described in Sec.
   15-4  125.012 available for inspection and copying by authorized
   15-5  personnel of the attorney general upon written request.
   15-6        (b)  The information provided to authorized personnel of the
   15-7  attorney general under subsection (a), Sec. 125.012 which
   15-8  identifies the donors of a charitable organization is confidential
   15-9  and shall not be disclosed to any person other than authorized
  15-10  employees of the attorney general, and other law enforcement
  15-11  entities to the extent necessary for investigative or law
  15-12  enforcement purposes, or others the attorney general deems
  15-13  necessary in the enforcement of this chapter.  Any material which
  15-14  contains information deemed confidential by law shall not be
  15-15  disclosed to persons other than authorized personnel of the
  15-16  attorney general or other law enforcement entities except upon the
  15-17  agreement of the person who furnished the material or with the
  15-18  approval of a court after adequate notice to the person who
  15-19  furnished the material.
  15-20        (c)  A commercial solicitor shall make available the
  15-21  information requested by authorized personnel of the attorney
  15-22  general at the commercial solicitor's principal place of business
  15-23  within ten working days of the date of the request, or at such
  15-24  other time and place as may be agreed.
  15-25        (d)  The authority established in this section is in addition
   16-1  to and does not limit any other statutory or common law audit or
   16-2  investigative authority of the attorney general.
   16-3        Sec. 125.017.  USE OF FEES.  All fees collected by the
   16-4  attorney general under this chapter are appropriated to the
   16-5  attorney general during the biennium of receipt to administer the
   16-6  provisions of this chapter, to enforce this chapter, and to educate
   16-7  the public about this chapter and charitable solicitations
   16-8  generally.
   16-9        Sec. 125.018.  TOLL-FREE TELEPHONE LINE.  The attorney
  16-10  general shall establish and operate a toll-free telephone line.
  16-11  The public may telephone the toll-free number to:
  16-12        (a)  obtain information concerning a commercial solicitor
  16-13  that has registered pursuant to this chapter; or
  16-14        (b)  report an alleged violation of this chapter.
  16-15        Sec. 125.019.  REGISTRATION DOES NOT IMPLY ENDORSEMENT.  (a)
  16-16  Registration pursuant to this chapter does not imply endorsement by
  16-17  the state or the attorney general, and commercial solicitors shall
  16-18  be prohibited from stating or implying to the contrary.
  16-19        (b)  Any printed solicitation, written confirmation, receipt
  16-20  or written reminder of a contribution issued by a commercial
  16-21  solicitor concerning a solicitation or contribution solicited by a
  16-22  commercial solicitor which is registered pursuant to this chapter
  16-23  shall contain the following statement:
  16-24        INFORMATION CONCERNING THIS CHARITABLE SOLICITATION MAY
  16-25        BE OBTAINED FROM THE ATTORNEY GENERAL OF THE STATE OF
   17-1        TEXAS BY CALLING (      ).  REGISTRATION WITH THE
   17-2        ATTORNEY GENERAL DOES NOT IMPLY ENDORSEMENT.
   17-3        (c)  The statement required by subsection (b) of this section
   17-4  must be conspicuously printed in all capital letters, at least as
   17-5  large as the standard size of the text in the body of the written
   17-6  communication
   17-7        Sec. 125.020.  REMEDIES.  (a)  The attorney general may
   17-8  institute an action for failure to fully and accurately comply with
   17-9  any provision of this statute, and may obtain injunctive relief to
  17-10  restrain the person from continuing the violation or violations,
  17-11  cancellation or suspension of the registration, an order
  17-12  restraining the person from doing business in this state while
  17-13  violating this chapter, and/or civil penalties of not more than
  17-14  $25,000 per violation.  A person who violates an injunction issued
  17-15  under this section is liable to the state for a civil penalty of
  17-16  not less than $100,000.
  17-17        (b)  Suit may be brought against a bond filed under this
  17-18  chapter.
  17-19        (c)  The remedies authorized by this chapter are not
  17-20  exclusive, but are in addition to any other procedure or remedies
  17-21  provided for by any other statutory or common law.
  17-22        (d)  In any proceeding successfully prosecuted by the
  17-23  attorney general under this chapter, the court may allow the
  17-24  attorney general to recover civil penalties and the reasonable
  17-25  costs, expenses and attorney's fees incurred in bringing the suit.
   18-1        Sec. 125.021.  APPROPRIATION OF FEES AND CIVIL PENALTIES.  In
   18-2  addition to moneys appropriated elsewhere, the attorney general is
   18-3  hereby appropriated all fees assessed pursuant to and all recovered
   18-4  expenses incurred in obtaining injunctive relief, administrative
   18-5  and/or civil penalties authorized by Chapter 125, Property Code.
   18-6  Recovered expenses include, but are not limited to, investigative
   18-7  costs, witness fees, attorneys' fees, and deposition expenses.
   18-8  Moneys hereby appropriated may be expended only for purposes of
   18-9  enforcing and administering the provisions of Chapter 125, Property
  18-10  Code and may not be appropriated for any other purpose.
  18-11        Sec. 125.022.  SERVICE ON THE SECRETARY OF STATE.  (a)  The
  18-12  secretary of state is an agent for service of process or complaint
  18-13  on a commercial solicitor which:
  18-14              (1)  is required by statute to designate or maintain a
  18-15  resident agent but has not designated or maintained a resident
  18-16  agent for service of process;
  18-17              (2)  has one or more resident agents for service of
  18-18  process, but two unsuccessful attempts have been made on different
  18-19  business days to serve each agent; or
  18-20              (3)  is not required to designate an agent for service
  18-21  in this state.
  18-22        (b)  Service on the secretary of state may be made by
  18-23  certified mail, return receipt requested, by the clerk of the court
  18-24  in which the case is pending, by the party or representative of the
  18-25  party or by any other method authorized by statute or the Texas
   19-1  Rules of Civil Procedure for service on the secretary of state.
   19-2        (c)  If the secretary of state is served with process for a
   19-3  commercial solicitor, he shall require a statement of the name and
   19-4  last known address of the commercial solicitor's home or office and
   19-5  shall immediately mail a copy of the process to the commercial
   19-6  solicitor by registered mail or by certified mail, return receipt
   19-7  requested.
   19-8        Sec. 125.023.  VENUE.  In any proceeding under this chapter,
   19-9  venue shall be in a court of competent jurisdiction in Travis
  19-10  County, or in the county in which the commercial solicitor has its
  19-11  principal place of business, or has a fixed or established place of
  19-12  business at the time the suit is brought, or in the county in which
  19-13  solicitation occurred.
  19-14        Sec. 125.024.  RULES.  The attorney general may prescribe any
  19-15  rules, procedures and forms which are consistent with and necessary
  19-16  for the proper administration and enforcement of this chapter.
  19-17        SECTION 2.  The changes in law made by this Act apply only to
  19-18  a solicitation that takes place on or after the effective date of
  19-19  this Act.  A solicitation that takes place before the effective
  19-20  date of this Act is governed by the law in effect on the date of
  19-21  the solicitation, and the former law is continued for this purpose.
  19-22        SECTION 3.  This Act takes effect September 1, 1995.
  19-23        SECTION 4.  SEVERABILITY.  If any section, sentence, clause,
  19-24  or part of this Act shall, for any reason, be held invalid, such
  19-25  invalidity shall not affect the remaining portions of the Act and
   20-1  it is hereby declared to be the intention of this legislature to
   20-2  have passed each section, sentence, clause, or part irrespective of
   20-3  the fact that any other section, sentence, clause, or part may be
   20-4  declared invalid.
   20-5        SECTION 5.  EMERGENCY.  The importance of this legislation
   20-6  and the crowded condition of the calendars in both houses create an
   20-7  emergency and an imperative public necessity that the
   20-8  constitutional rule requiring bills to be read on three separate
   20-9  days in each house be suspended, and this rule is hereby suspended.