77R4214 JMG-D                           
         By Haggerty                                            H.B. No. 493
         Substitute the following for H.B. No. 493:
         By Brimer                                          C.S.H.B. No. 493
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to cancellation of certain consumer transactions.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 39.002(b), Business & Commerce Code, is
 1-5     amended to read as follows:
 1-6           (b)  Notwithstanding Subsection (a), this chapter does not
 1-7     apply to:
 1-8                 (1)  a purchase of farm equipment;
 1-9                 (2)  an insurance sale regulated by the Texas
1-10     Department of Insurance;
1-11                 (3)  a sale of goods or services made:
1-12                       (A)  under a preexisting revolving charge account
1-13     or retail charge agreement; or
1-14                       (B)  after negotiations between the parties at a
1-15     business establishment at a fixed location where goods or services
1-16     are offered or exhibited for sale; [or]
1-17                 (4)  a sale of real property if:
1-18                       (A)  the purchaser is represented by a licensed
1-19     attorney;
1-20                       (B)  the transaction is negotiated by a licensed
1-21     real estate broker; or
1-22                       (C)  the transaction is negotiated at a place
1-23     other than the consumer's residence by the person who owns the
1-24     property; or
 2-1                 (5)  a residential service contract sale regulated by
 2-2     the Texas Real Estate Commission.
 2-3           SECTION 2. This Act takes effect September 1, 2001, and
 2-4     applies only to a residential service contract sale regulated by
 2-5     the Texas Real Estate Commission entered into on or after the
 2-6     effective date of this Act. A residential service contract sale
 2-7     regulated by the Texas Real Estate Commission entered into before
 2-8     the effective date of this Act is governed by the law in effect
 2-9     immediately before the effective date of this Act, and that law is
2-10     continued in effect for that purpose.