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.