Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Coleman                                      H.B. No. 2772

                                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

1-24     through public awareness and donor education.

 2-1           Sec. 125.003.  DEFINITIONS.  In this chapter and for purposes

 2-2     of this chapter only:

 2-3           (a)  "Charitable organization" means

 2-4                 (1)  a person who is exempt or has applied for

 2-5     exemption from federal income tax under Section 501(c)(3) of the

 2-6     Internal Revenue Code of 1986; or

 2-7                 (2)  a person who solicits contributions and is exempt

 2-8     or has applied for exemption from federal income tax under Sections

 2-9     501(c)(4) or 501(c)(10) of the Internal Revenue Code of 1986; or

2-10                 (3)  any other person who solicits contributions and is

2-11     or holds himself, herself, or itself out to be established or

2-12     operating for a charitable purpose, except for commercial

2-13     coventurers and volunteers that have been authorized to solicit on

2-14     behalf of a charitable organization which has registered in

2-15     accordance with the provisions of this Act.

2-16           (b)  "Charitable purpose" means (1) any purpose described in

2-17     Section 501(c)(3) of the Internal Revenue Code of 1986; or (2) the

2-18     provision of assistance to needy individuals.

2-19           (c)  "Commercial Solicitor" means any person who is retained

2-20     by a charitable organization to solicit contributions, whether such

2-21     solicitation is done individually or through other persons under

2-22     the direction of the commercial solicitor.  No fundraising counsel

2-23     shall be deemed a commercial solicitor.  No bona fide employee,

2-24     officer, director, or volunteer of a charitable organization shall

2-25     be deemed to be a commercial solicitor.  No person who advises

2-26     another person to make a charitable contribution shall be deemed,

2-27     as the result of such advice, to be a commercial solicitor.

2-28           (d)  "Contribution" means the promise to give or gift of

2-29     money, credit, property, financial assistance, or other thing of

2-30     any kind or value, except for volunteer services.  It does not

 3-1     include bona fide fees, dues or assessments paid by members,

 3-2     provided that membership is not conferred solely as consideration

 3-3     for making a contribution in response to a solicitation.

 3-4           (e)  "Person" means an individual, partnership, corporation,

 3-5     association, or other entity, however organized.

 3-6           (f)  "Solicit" and "solicitation" mean:

 3-7                 (1)  The direct or indirect request for a contribution

 3-8     on the plea or representation that the contribution, or any portion

 3-9     thereof, will be used for a charitable purpose or to benefit a

3-10     charitable organization.  A solicitation shall be deemed to have

3-11     taken place whether or not the person making the solicitation

3-12     receives any contribution.  Without limiting the scope of the

3-13     foregoing, these words shall include the following method of

3-14     requesting contributions:

3-15                       (A)  any oral or written request;

3-16                       (B)  publicizing a request in newspapers, on the

3-17     radio or television, or by any telecommunications device or other

3-18     manner of transmitting information to the public;

3-19                       (C)  the distribution, circulation, posting or

3-20     publishing of any handbill, written advertisement or other

3-21     publications;

3-22                       (D)  offering for sale any advertisement, book,

3-23     card, coupon, ticket, membership, merchandise, subscription,

3-24     flower, candy or other tangible item if any appeal is made for any

3-25     charitable organization or charitable purpose, or if the name of

3-26     any charitable organization is used or referred to in the appeal as

3-27     an inducement or reason for making the sale, or where any statement

3-28     is made that the whole or any part of the proceeds from the sale

3-29     will be used for any charitable purpose or to benefit any

3-30     charitable organization; or

 4-1                       (E)  the use or employment of canisters, cards,

 4-2     receptacles or similar devices for the collection of money or other

 4-3     things of value in connection with which any appeal is made for any

 4-4     charitable organization or charitable purpose.

 4-5                 (2)  The words "solicit" and "solicitation" shall not

 4-6     include a request for contributions by a charitable organization

 4-7     made solely to its current and former trustees, officers,

 4-8     directors, members, employees, students, advisory boards or

 4-9     volunteers.

4-10           (g)  "Knowingly" means with actual awareness, but actual

4-11     awareness may be inferred where object manifestations indicate that

4-12     a person acted with actual awareness.

4-13           (h)  "Commercial coventurer" means any person who for profit

4-14     regularly and primarily is engaged in trade or commerce other than

4-15     in connection with soliciting for charitable organizations or

4-16     charitable purposes and who conducts a charitable sales promotion.

4-17           (i)  "Charitable sales promotion" means any advertising or

4-18     sale conducted by a person who represents that the purchase or use

4-19     of goods or services offered by the person will benefit, in whole

4-20     or in part, any charitable organization or charitable purpose.  The

4-21     provision of advertising services to a charitable organization,

4-22     either for compensation or as a donation, does not of itself

4-23     constitute a charitable sales promotion.

4-24           (j)  "Fundraising counsel" means any person who for

4-25     compensation consults with a charitable organization or who plans,

4-26     manages, advises or assists with respect to the solicitation of

4-27     contributions for or on behalf of a charitable organization, but

4-28     who does not have custody and control over contributions or other

4-29     receipts from a solicitation or authority to pay expenses

4-30     associated with a solicitation and who does not solicit or employ,

 5-1     procure or engage any compensated person to solicit contributions.

 5-2     A bona fide officer, volunteer, or employee of a charitable

 5-3     organization shall not be deemed a fundraising counsel.

 5-4           Sec. 125.004.  REGISTER TO BE MAINTAINED.  (a)  The attorney

 5-5     general shall establish and maintain a register of commercial

 5-6     solicitors subject to this chapter.

 5-7           (b)  Except as otherwise provided herein, all documents

 5-8     required to be filed with the attorney general under this chapter

 5-9     shall be public information and shall be available to the public

5-10     pursuant to the Open Records Act, Chapter 552, Government Code,

5-11     except those documents which identify the donors of a charitable

5-12     organization, which information is confidential and shall not be

5-13     subject to disclosure.

5-14           Sec. 125.005.  REGISTRATION.  (a)  No commercial solicitor

5-15     may solicit contributions in Texas unless the commercial solicitor

5-16     has fully complied with the requirements of this chapter

5-17           (b)  By January 1, 1996 for commercial solicitors doing

5-18     business in Texas on the effective date of this Act, or at least 10

5-19     working days before beginning new solicitations in Texas after the

5-20     effective date of this Act, a commercial solicitor shall do all of

5-21     the following:

5-22                 (1)  submit to the attorney general a completed

5-23     registration statement, on a form prescribed or approved by the

5-24     attorney general, that contains all of the following:

5-25                       (A)  the legal name and any other names used by

5-26     the commercial solicitor, and its federal employer identification

5-27     number or social security number;

5-28                       (B)  the street address(es), mailing address(es),

5-29     telephone number(s) and facsimile number(s) for all offices of the

5-30     commercial solicitor;

 6-1                       (C)  the date and state of incorporation of the

 6-2     commercial solicitor, or, if the commercial solicitor is not

 6-3     incorporated, the type of organization it is, the state in which it

 6-4     was formed and date it was formed;

 6-5                       (D)  a list of charitable organizations for which

 6-6     solicitation is planned or ongoing for the year of registration,

 6-7     providing their legal names and any other names they use,

 6-8     address(es), and telephone number(s);

 6-9                       (E)  a statement as to whether the commercial

6-10     solicitor or any of its directors, officers, agents, or employees

6-11     has been enjoined by a government agency or court from soliciting,

6-12     has had its registration denied or revoked, has been the subject of

6-13     any court or administrative proceeding regarding any solicitation

6-14     or registration, and/or entered into a voluntary agreement of

6-15     compliance.  The statement shall include a description of each

6-16     proceeding, the state in which the proceeding occurred, the name of

6-17     the agency or court that presided over the proceeding, the date of

6-18     the proceeding, and the ultimate outcome of the proceeding;

6-19                       (F)  a list of all agencies and states where the

6-20     commercial solicitor is registered or has been registered,

6-21     including dates of registration, registration numbers, any other

6-22     names under which the commercial solicitor was or is registered and

6-23     the dates and types of solicitation conducted in each such state

6-24     during the past year;

6-25                       (G)  a statement that the commercial solicitor

6-26     has complied with all applicable Texas county and municipal

6-27     ordinances regarding solicitation, or, if none apply, a statement

6-28     to that effect;

6-29                       (H)  the names, street addresses, and telephone

6-30     numbers of the owners, officers, directors, and chief operating

 7-1     officers of the commercial solicitor;

 7-2                       (I)  a statement as to whether any owner,

 7-3     officer, director, or employee has ever been convicted of or

 7-4     pleaded nolo contendere to a misdemeanor involving fraud or the

 7-5     theft, misappropriation, misapplication, or misuse of property of

 7-6     another, or of any felony, including the offense and the state,

 7-7     court, and date of each conviction or plea of nolo contendere;

 7-8                       (J)  the names of all individuals responsible for

 7-9     custody or control of funds, distribution of funds, custody of

7-10     records, or authorized to sign checks and/or to make withdrawals;

7-11                       (K)  a statement that the charitable

7-12     organization(s) for which it is soliciting contributions is

7-13     registered pursuant to Chapter 124, Property Code; and

7-14                       (L)  a sworn statement by the commercial

7-15     solicitor or an owner, officer or director of the commercial

7-16     solicitor that the information included in the registration

7-17     statement is true, correct, and complete.

7-18                 (2)  File with the attorney general a bond that meets

7-19     the requirements of Sec. 125.006.

7-20                 (3)  Pay to the attorney general a $250 registration

7-21     fee.

7-22                 (4)  Comply with the provisions of Sec. 125.007.

7-23           (c)  Registration statements expire one year from the date of

7-24     filing.  Renewal registration statements shall be submitted to the

7-25     attorney general on the same forms required for initial

7-26     registration statements on or before the expiration date.  In order

7-27     to renew registration, commercial solicitors shall include:

7-28                 (1)  any changes in the registration statement

7-29     previously provided to the attorney general or a statement that

7-30     there are no changes for the items on which there are no changes

 8-1     from the prior year;

 8-2                 (2)  a $250 renewal fee; and

 8-3                 (3)  evidence satisfactory to the attorney general that

 8-4     the commercial solicitor maintains a bond that meets the

 8-5     requirements of Sec. 125.006.

 8-6           (d)  Commercial solicitors that are not in compliance with

 8-7     the provisions of this chapter shall be notified of noncompliance

 8-8     by the attorney general by first class mail at the commercial

 8-9     solicitor's last reported address.  Noncompliance shall include

8-10     failure to file any documents required by this chapter or the

8-11     filing of incomplete or inaccurate documents.  A commercial

8-12     solicitor shall be deemed to be in violation of this chapter if it

8-13     fails to correct any deficiency in the registration statement, bond

8-14     or fee within thirty days of the date the notice of deficiency is

8-15     mailed, or if it knowingly files inaccurate documents.

8-16           Sec. 125.006.  BOND.  At the time of filing a registration

8-17     statement, a commercial solicitor shall file with the attorney

8-18     general a bond in which the commercial solicitor is the principal

8-19     obligor, in the sum $25,000, with one or more responsible sureties

8-20     whose liability in the aggregate as sureties at least equals that

8-21     sum.  The commercial solicitor shall maintain the bond as long as

8-22     the registration is in effect.  The bond, which may be in the form

8-23     of a rider to a larger blanket liability bond, shall run to the

8-24     state and to any person who may have a cause of action against the

8-25     commercial solicitor for any liabilities arising out of a violation

8-26     of this chapter or the rules promulgated under this chapter.

8-27           Sec. 125.007.  SOLICITATION NOTICE.  At least ten working

8-28     days before soliciting on behalf of a charitable organization, a

8-29     commercial solicitor shall file with the attorney general the

8-30     written contract required by Sec. 125.008, a filing fee of $50.00

 9-1     and a completed solicitation notice, on a form prescribed or

 9-2     approved by the attorney general, that includes all of the

 9-3     following information that is not explicitly  included in the

 9-4     written contract:

 9-5           (a)  the estimated amount and method of calculation of

 9-6     compensation and expenses to be paid to or by the commercial

 9-7     solicitor under the contract described in Sec. 125.008;

 9-8           (b)  the type(s) of solicitation to be conducted and the

 9-9     projected period during which the solicitation will take place;

9-10           (c)  the street address(es) and telephone number(s) from

9-11     which the solicitation will be conducted;

9-12           (d)  the name and street address of each person responsible

9-13     for supervising the services provided by the commercial solicitor

9-14     under the contract described in Sec. 125.008;

9-15           (e)  a statement as to whether the commercial solicitor will

9-16     at any time  have custody or control of contributions, and if not,

9-17     a statement identifying by name and street address, the person who

9-18     will have custody or control of contributions;

9-19           (f)  a complete description of the charitable purpose or

9-20     purposes for which solicitations will be made;

9-21           (g)  a statement as to whether any officer, director,

9-22     partner, employee, or owner of more than 10% of the commercial

9-23     solicitor, or a relative of any of  them, has in any way been

9-24     affiliated with or in control of the charitable organization which

9-25     is the subject of the solicitation, directly or indirectly;

9-26           (h)  a statement as to whether any officer, director,

9-27     trustee, member, or employee of the charitable organization which

9-28     is the subject of the solicitation, or a relative of any of them,

9-29     has in any way been affiliated with or in  control of the

9-30     commercial solicitor, directly or indirectly;

 10-1          (i)  a sworn statement by an owner, officer or director of

 10-2    the commercial solicitor that the information included in the

 10-3    solicitation notice is true, correct and complete; and

 10-4          (j)  written confirmation from the charitable organization on

 10-5    whose behalf the commercial solicitor is acting that the

 10-6    information contained in the solicitation notice is true, correct

 10-7    and complete to the best of organization's knowledge.

 10-8          Sec. 125.008.  CONTRACT.  A commercial solicitor shall enter

 10-9    into a written contract with every charitable organization for

10-10    which it solicits that states the respective obligations of the

10-11    commercial solicitor and the charitable organization.  The contract

10-12    shall state the amount of the compensation that the commercial

10-13    solicitor will receive.  The compensation shall be expressed either

10-14    as (a) a fixed percentage of the gross revenue, (b) an hourly or

10-15    other fee based on specific services to be provided or (c) a dollar

10-16    amount.  Any expenses to be paid by the charitable organization

10-17    shall be set forth in the contract.

10-18          Sec. 125.009.  REPORTING CHANGES.  Within ten days after any

10-19    material change occurs in any solicitation notice or contract filed

10-20    with the attorney general under Section 125.007, the commercial

10-21    solicitor shall report the change, in writing, to the attorney

10-22    general.

10-23          Sec. 125.010.  FINANCIAL REPORT.  Within 90 days after

10-24    completing services under a contract described in Sec. 125.008 and

10-25    within 90 days after the close of the commercial solicitor's fiscal

10-26    year for any contract described under Sec. 125.008 which is in

10-27    effect more than one year, the commercial solicitor shall account

10-28    in writing to the charitable organization for all contributions

10-29    received by the commercial solicitor and details regarding all

10-30    compensation and expenses charged by the commercial solicitor to

 11-1    the charitable organization under the contract, and shall file such

 11-2    accounting with the attorney general.

 11-3          Sec. 125.011.  DEPOSITING CONTRIBUTIONS.  A commercial

 11-4    solicitor shall deposit all monetary contributions it receives on

 11-5    behalf of a charitable organization in an account at a financial

 11-6    institution within five days after receipt.  The charitable

 11-7    organization shall have sole control of all withdrawals from the

 11-8    account.

 11-9          Sec. 125.012.  RECORD KEEPING.  During the period in which a

11-10    contract described in Sec. 125.008, is in effect and for not less

11-11    than three years after its completion, a commercial solicitor shall

11-12    keep and retain true books and records as to its activities within

11-13    the state in such form as will enable it to accurately provide the

11-14    information required by this chapter, including, but not limited to

11-15    the following records:

11-16          (a)  the date and amount of the contribution and, if known,

11-17    the name and address of each person contributing;

11-18          (b)  the name and street address of each employee or agent

11-19    involved in the solicitation;

11-20          (c)  a record of all contributions that are at any time in

11-21    the custody or control of the commercial solicitor;

11-22          (d)  a record of all expenses incurred by the commercial

11-23    solicitor that the charitable organization is required to pay or

11-24    the commercial solicitor pays on behalf of the charitable

11-25    organization; and

11-26          (e)  a record of the location and account number of each

11-27    financial institution account in which the commercial solicitor

11-28    deposits contributions.

11-29          Sec. 125.013.  PROHIBITED SOLICITATIONS.  (a)  No person

11-30    shall solicit contributions on behalf of a charitable organization

 12-1    without prior written consent from the charitable organization.

 12-2          (b)  A charitable organization and/or the attorney general

 12-3    may institute an action against any person who solicits

 12-4    contributions in violation of this section unless this right is

 12-5    waived in writing by the charitable organization after the

 12-6    violation occurs.

 12-7          (c)  Commercial solicitors and those employed or engaged to

 12-8    solicit by or for them shall disclose their status as paid

 12-9    solicitors in all oral and written solicitations.  No commercial

12-10    solicitor or person employed or engaged to solicit by or for them

12-11    shall solicit on behalf of a charitable organization without making

12-12    such disclosure.

12-13          (d)  The remedy established in this section is in addition to

12-14    and does not limit any other statutory or common law remedies

12-15    available to the attorney general.

12-16          Sec. 125.014.  COMMERCIAL SOLICITORS DEEMED TO BE ACTING IN A

12-17    FIDUCIARY CAPACITY.  Every commercial solicitor and every person

12-18    employed or engaged by or for a commercial solicitor to solicit

12-19    contributions shall be deemed to be acting in a fiduciary capacity

12-20    with respect to contributions they solicit.

12-21          Sec. 125.015.  COMMERCIAL COVENTURERS.  Prior to the

12-22    commencement of any charitable sales promotion in this state

12-23    conducted by a commercial coventurer, the commercial coventurer

12-24    shall obtain the written consent of the charitable organization(s)

12-25    whose name(s) will be used during the charitable sales promotion.

12-26          Sec. 125.016.  AUDIT POWERS OF THE ATTORNEY GENERAL.  (a)

12-27    The commercial solicitor shall make all records described in Sec.

12-28    125.012 available for inspection and copying by authorized

12-29    personnel of the attorney general upon written request.

12-30          (b)  The information provided to authorized personnel of the

 13-1    attorney general under subsection (a), Sec. 125.012 which

 13-2    identifies the donors of a charitable organization is confidential

 13-3    and shall not be disclosed to any person other than authorized

 13-4    employees of the attorney general, and other law enforcement

 13-5    entities to the extent necessary for investigative or law

 13-6    enforcement purposes, or others the attorney general deems

 13-7    necessary in the enforcement of this chapter.  Any material which

 13-8    contains information deemed confidential by law shall not be

 13-9    disclosed to persons other than authorized personnel of the

13-10    attorney general or other law enforcement entities except upon the

13-11    agreement of the person who furnished the material or with the

13-12    approval of a court after adequate notice to the person who

13-13    furnished the material.

13-14          (c)  A commercial solicitor shall make available the

13-15    information requested by authorized personnel of the attorney

13-16    general at the commercial solicitor's principal place of business

13-17    within ten working days of the date of the request, or at such

13-18    other time and place as may be agreed.

13-19          (d)  The authority established in this section is in addition

13-20    to and does not limit any other statutory or common law audit or

13-21    investigative authority of the attorney general.

13-22          Sec. 125.017.  USE OF FEES.  All fees collected by the

13-23    attorney general under this chapter are appropriated to the

13-24    attorney general during the biennium of receipt to administer the

13-25    provisions of this chapter, to enforce this chapter, and to educate

13-26    the public about this chapter and charitable solicitations

13-27    generally.

13-28          Sec. 125.018.  TOLL-FREE TELEPHONE LINE.  The attorney

13-29    general shall establish and operate a toll-free telephone line.

13-30    The public may telephone the toll-free number to:

 14-1          (a)  obtain information concerning a commercial solicitor

 14-2    that has registered pursuant to this chapter; or

 14-3          (b)  report an alleged violation of this chapter.

 14-4          Sec. 125.019.  REGISTRATION DOES NOT IMPLY ENDORSEMENT.  (a)

 14-5    Registration pursuant to this chapter does not imply endorsement by

 14-6    the state or the attorney general, and commercial solicitors shall

 14-7    be prohibited from stating or implying to the contrary.

 14-8          (b)  Any printed solicitation, written confirmation, receipt

 14-9    or written reminder of a contribution issued by a commercial

14-10    solicitor concerning a solicitation or contribution solicited by a

14-11    commercial solicitor which is registered pursuant to this chapter

14-12    shall contain the following statement:

14-13    INFORMATION CONCERNING THIS CHARITABLE SOLICITATION MAY BE OBTAINED

14-14    FROM THE ATTORNEY GENERAL OF THE STATE OF TEXAS BY CALLING

14-15    (      ).  REGISTRATION WITH THE ATTORNEY GENERAL DOES NOT IMPLY

14-16    ENDORSEMENT.

14-17          (c)  The statement required by subsection (b) of this section

14-18    must be conspicuously printed in all capital letters, at least as

14-19    large as the standard size of the text in the body of the written

14-20    communication

14-21          Sec. 125.020.  REMEDIES.  (a)  The attorney general may

14-22    institute an action for failure to fully and accurately comply with

14-23    any provision of this statute, and may obtain injunctive relief to

14-24    restrain the person from continuing the violation or violations,

14-25    cancellation or suspension of the registration, an order

14-26    restraining the person from doing business in this state while

14-27    violating this chapter, and/or civil penalties of not more than

14-28    $25,000 per violation.  A person who violates an injunction issued

14-29    under this section is liable to the state for a civil penalty of

14-30    not less than $100,000.

 15-1          (b)  Suit may be brought against a bond filed under this

 15-2    chapter.

 15-3          (c)  The remedies authorized by this chapter are not

 15-4    exclusive, but are in addition to any other procedure or remedies

 15-5    provided for by any other statutory or common law.

 15-6          (d)  In any proceeding successfully prosecuted by the

 15-7    attorney general under this chapter, the court may allow the

 15-8    attorney general to recover civil penalties and the reasonable

 15-9    costs, expenses and attorney's fees incurred in bringing the suit.

15-10          Sec. 125.021.  APPROPRIATION OF FEES AND CIVIL PENALTIES.  In

15-11    addition to moneys appropriated elsewhere, the attorney general is

15-12    hereby appropriated all fees assessed pursuant to and all recovered

15-13    expenses incurred in obtaining injunctive relief, administrative

15-14    and/or civil penalties authorized by Chapter 125, Property Code.

15-15    Recovered expenses include, but are not limited to, investigative

15-16    costs, witness fees, attorneys' fees, and deposition expenses.

15-17    Moneys hereby appropriated may be expended only for purposes of

15-18    enforcing and administering the provisions of Chapter 125, Property

15-19    Code and may not be appropriated for any other purpose.

15-20          Sec. 125.022.  SERVICE ON THE SECRETARY OF STATE.  (a)  The

15-21    secretary of state is an agent for service of process or complaint

15-22    on a commercial solicitor which:

15-23                (1)  is required by statute to designate or maintain a

15-24    resident agent but has not designated or maintained a resident

15-25    agent for service of process;

15-26                (2)  has one or more resident agents for service of

15-27    process, but two unsuccessful attempts have been made on different

15-28    business days to serve each agent; or

15-29                (3)  is not required to designate an agent for service

15-30    in this state.

 16-1          (b)  Service on the secretary of state may be made by

 16-2    certified mail, return receipt requested, by the clerk of the court

 16-3    in which the case is pending, by the party or representative of the

 16-4    party or by any other method authorized by statute or the Texas

 16-5    Rules of Civil Procedure for service on the secretary of state.

 16-6          (c)  If the secretary of state is served with process for a

 16-7    commercial solicitor, he shall require a statement of the name and

 16-8    last known address of the commercial solicitor's home or office and

 16-9    shall immediately mail a copy of the process to the commercial

16-10    solicitor by registered mail or by certified mail, return receipt

16-11    requested.

16-12          Sec. 125.023.  VENUE.  In any proceeding under this chapter,

16-13    venue shall be in a court of competent jurisdiction in Travis

16-14    County, or in the county in which the commercial solicitor has its

16-15    principal place of business, or has a fixed or established place of

16-16    business at the time the suit is brought, or in the county in which

16-17    solicitation occurred.

16-18          Sec. 125.024.  RULES.  The attorney general may prescribe any

16-19    rules, procedures and forms which are consistent with and necessary

16-20    for the proper administration and enforcement of this chapter.

16-21          SECTION 2.  The changes in law made by this Act apply only to

16-22    a solicitation that takes place on or after the effective date of

16-23    this Act.  A solicitation that takes place before the effective

16-24    date of this Act is governed by the law in effect on the date of

16-25    the solicitation, and the former law is continued for this purpose.

16-26          SECTION 3.  This Act takes effect September 1, 1997.

16-27          SECTION 4.  SEVERABILITY.  If any section, sentence, clause,

16-28    or part of this Act shall, for any reason, be held invalid, such

16-29    invalidity shall not affect the remaining portions of the Act and

16-30    it is hereby declared to be the intention of this legislature to

 17-1    have passed each section, sentence, clause, or part irrespective of

 17-2    the fact that any other section, sentence, clause, or part may be

 17-3    declared invalid.

 17-4          SECTION 5.  EMERGENCY.  The importance of this legislation

 17-5    and the crowded condition of the calendars in both houses create an

 17-6    emergency and an imperative public necessity that the

 17-7    constitutional rule requiring bills to be read on three separate

 17-8    days in each house be suspended, and this rule is hereby suspended.