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.