S.B. 378 78(R)    BILL ANALYSIS


S.B. 378
By: Armbrister
Business & Industry
Committee Report (Amended)



BACKGROUND AND PURPOSE 

Currently, Texas law has no provision prohibiting the misrepresentation of
a floral industry business's geographic location.  There are a number of
floral telemarketing businesses that falsely advertise in local telephone
directories and listings as a local business and subsequently charge
additional fees when filling the order.  The bill prohibits the use of
local contact information in telephone directories or databases to
misrepresent a business's location. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

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.
(a)  Prohibits a person from misrepresenting the geographical location of
a business that derives 50 percent or more of its gross income from the
sale or arranging for the sale of flowers or floral arrangements in the
listing in a telephone directory or other directory assistance database. 

(b) Provides criteria by which a person is considered to have
misrepresented the location of a business for the purpose of Subsection
(a). 

(c) Authorizes a person to place a business directory listing indicating
that the business is located in a different geographical area, if a
conspicuous notice in the listing states the municipality and state in
which the business is actually located. 

 (d) Provides that this section does not apply to certain entities.

(e) Provides that violation of this section is a false, misleading, or
deceptive act or practice and authorizes remedies to enforce this section. 

SECTION 2.  Effective date: September 1, 2003.  No retroactive clause.

EFFECTIVE DATE

The effective date is September 1, 2003.


EXPLANATION OF AMENDMENTS

Creates a new section (e) in Section 1 providing that no duty or
obligation is imposed upon anyone other than the business that is the
subject of the advertisement or listing and renumbers subsequent section
accordingly.