HBA-DMD S.B. 513 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 513
By: Carona
State Affairs
4/28/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, Texas law encourages recycling and waste reduction within state
agencies. Certain vendors and other suppliers of goods which supply state
agencies have instituted a business practice which prohibits the recycling
or remanufacturing of any of their products. S.B. 513 provides that it is
unlawful for a tradesperson to require that a purchaser follow certain
procedures after using a purchased product. This bill authorizes the
attorney general, in order to recover actual damages to file suit, in
district court in Travis County or in any county in the State of Texas in
which any of the named defendants resides, does business, or maintains its
principal office.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 15.05, Business & Commerce Code, to provide that
it is unlawful for any person to sell or contract for the sale of any
goods, whether patented or unpatented, for certain uses or to fix a price
for such uses or to discount from or rebate upon such price, on the
condition, agreement, or understanding that the purchaser must, after use,
discard the goods or return the goods to the seller, where such condition,
agreement, or understanding is unreasonable and where the effect of the
condition, agreement, or understanding may be to lessen competition
substantially in any line of trade or commerce. Authorizes an action under
this subsection to be initiated only by the state. Redesignates Subsections
(d)-(i) to Subsections (e)-(j), respectively. Makes conforming changes. 

SECTION 2.  Amends Section 15.20, Business & Commerce Code, as follows:
 
(c) Suit to Collect Actual Damages. Authorizes the attorney general, in
order to recover actual damages under Subsection (d) of Section 15.05 of
this Act, to file suit on behalf of the State of Texas, in district court
in Travis County or in any county in the State of Texas in which any of the
named defendants resides, does business, or maintains its principal office,
to recover actual damages sustained, interest on actual damages for a
specified period, and the cost of suit, including reasonable attorney's
fees. Requires the rate of interest under this subsection to be determined
in accordance with Texas law regarding postjudgment interest rates and the
amount of interest is required to be adjusted by the court if it finds that
the award of all or part of such interest is unjust under the
circumstances. Requires the trier of fact, if it finds that the unlawful
conduct was wilful or flagrant, to increase the recovery to threefold the
damages sustained and the cost of suit, including reasonable attorney's
fees. Prohibits interest on actual damages as specified in this subsection
from being recovered when recovered damages are increased threefold.  

(d) Includes a suit filed under Subsection (c) among other subsections that
are prohibited from being transferred to another county except on order of
the court. Redesignates existing Subsections (c) and (d) as Subsections (d)
and (e), respectively.  

SECTION 3.  Provides that the change in law made by this Act applies only
to a sale or contract for the sale of goods entered into on or after the
effective date of this Act. 
 
SECTION 4.Effective date: September 1, 1999. 

SECTION 5.Emergency clause.