SRC-JBJ C.S.S.B. 169 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 169
76R8423 CLG-DBy: Armbrister
Economic Development
4/22/1999
Committee Report (Substituted)


DIGEST 

Currently, some businesses, with the assistance of a telemarketing firm,
advertise as a "local" business, although the business may be located out
of town.  The business omits a physical address, assumes a local name, and
uses a locally dialed phone number.  When a consumer dials the local phone
number, the call is forwarded by the telemarketing firm to an out-of-town
or out-of-state order gathering location. If a consumer calls directory
assistance, he or she receives the same phone information that forwards the
call to an out-of-town location.  The consumer is led, in effect, to
believe the purchase is from a local community business, when in fact the
businesses may not be located within the same area code. C.S.S.B. 169 would
prohibit misrepresentation of a business location in a telephone directory
or database. 

PURPOSE

As proposed, C.S.S.B. 169 prohibits misrepresentation of a business
location in a telephone directory or database. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 17E, Business & Commerce Code, by adding Section
17.462, as follows: 

Sec. 17.462.  LISTING OF BUSINESS LOCATION IN DIRECTORY OR DATABASE.
Prohibits certain persons from misrepresenting the geographical location of
a business that derive more than 50 percent of their gross income from
flower sales in a telephone directory or other directory database.
Provides that a person is considered to misrepresent the geographical
location of a business if the name of the business indicates it is located
in a geographical area, and the business resides out of the geographical
area, the municipality and state are not identified, and telephone calls
are routinely forwarded to outside the calling area.  Authorizes a person
to place a directory listing for a business, the name of which indicates it
is located in an area different from the area in which it is located, if a
conspicuous notice states the city and state in which the business is
located.  Provides that this section does not apply to a publisher or
provider of a telephone directory.  Provides that a violation of this
section is a false, misleading, or deceptive act or practice under this
subchapter, and is subject to any public or private right or remedy
prescribed by this subchapter. 

SECTION 2.  Effective date:  September 1, 1999.
Makes application of this Act prospective.

SECTION 3.Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.  

Amends proposed Section 17.462, Business & Commerce Code, to add text
regarding the percent of income from flower sales to the prohibition that a
person may not misrepresent the  geographical location of a business, and
to add a provision referencing Subsection (a) in an authorization to place
certain listings.