SRC-MWN S.B. 560 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 560
By: Sibley
Business & Commerce
4/18/2001
As Filed


DIGEST AND PURPOSE 

Current law protects consumers from abuse resulting from door-to-door sales
by requiring a merchant who solicits a consumer away from the merchant's
place of business to permit a consumer to cancel an agreement entered into
with the merchant within three days. Both insurance sales regulated by the
Texas Department of Insurance and sales of real property are exempt from
this provision. A residential service contract may be considered similar to
an insurance policy in that it involves a premium to repair or replace many
of the mechanical, electrical, structural, or plumbing systems in a
consumer's home. S.B. 560 exempts a residential service contract from law
pertaining to the cancellation of certain transactions that take place away
from the merchant's place of business.  

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 39.002, Business & Commerce Code, to provide that
this chapter, notwithstanding Subsection (a), does not apply to certain
transactions including a residential service contract sale regulated by the
Texas Real Estate Commission. 

SECTION 2. Effective date: September 1, 2001.