GEC C.S.H.B. 2966 75(R) BILL ANALYSIS BUSINESS & INDUSTRY C.S.H.B. 2966 By: Davila 4-16-97 Committee Report (Substituted) BACKGROUND Although telemarketing regulations exist at the federal and state level, Texas law is vague in its definition of what constitutes a "consumer telephone call." Presently, Texans are subject to telemarketing calls that seek to set appointments for later face-to-face visits about the sale of roofing, carpeting, vinyl siding, and other services because the practice is not subject to state regulations. Consumer goods or services for lease are also not covered by the present definition. A need exists to correct language defining telephone solicitations, regulating the time such calls can be placed and applying consumer protections to all telemarketing calls. PURPOSE To clarify the definition of what constitutes a telemarketing call and ensure the applicability of current consumer protections. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1: Amends Sections 37.01(4) and (5) of the Business and Commerce Code (4) Adds (A) and renumbers subsections to expand the definition of a consumer telephone call. (i) Adds a good or service for "lease" to the definition of a "consumer telephone call" (ii) replaces (A) with no change (iii) replaces (B) with no change (iv) replaces (C) and adds a good or service for "lease" to the definition of a "consumer telephone call." (v) Added subsection defines calls to generate appointments as a "consumer telephone call." (5) Adds "or other recorded message device" to the definition of "telephone solicitor." SECTION 2: Emergency clause COMPARISON OF ORIGINAL TO SUBSTITUTE Originally, HB 2966 shortened the time during which telemarketing calls could be made and defined "telemarketing." The substitute does not change the times during which these calls can be made so as to not conflict with existing statute. To conform with existing statute, CSHB 2966 amends the present definition of "consumer telephone call" in the Business and Commerce Code so that consumer protection regulations affect certain telemarketing practices not already covered.