By: Deshotel H.B. No. 2278
 
A BILL TO BE ENTITLED
AN ACT
relating to a nonsubstantive revision of statutes relating to
business and commerce; including conforming amendments.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. GENERAL MATTERS
       SECTION 1.01.  PURPOSE OF ACT. (a) This Act is enacted as a
part of the state's continuing statutory revision program under
Section 323.007, Government Code. The program contemplates a
topic-by-topic revision of the state's general and permanent
statute law without substantive change.
       (b)  Consistent with the objectives of the statutory
revision program, the purpose of this Act is to make the law
encompassed by this Act more accessible and understandable by:
             (1)  rearranging the statutes into a more logical
order;
             (2)  employing a format and numbering system designed
to facilitate citation of the law and to accommodate future
expansion of the law;
             (3)  eliminating repealed, duplicative,
unconstitutional, expired, executed, and other ineffective
provisions; and
             (4)  restating the law in modern American English to
the greatest extent possible.
ARTICLE 2. MISCELLANEOUS COMMERCIAL PROVISIONS
       SECTION 2.01.  TITLES 4 THROUGH 15 AND 99.  The Business &
Commerce Code is amended by revising Title 4 and adding Titles 5
through 15 and 99 to read as follows:
CHAPTER 51.  BUSINESS OPPORTUNITIES
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 51.001.  SHORT TITLE
Sec. 51.002.  GENERAL DEFINITIONS
Sec. 51.003.  DEFINITION OF BUSINESS OPPORTUNITY
Sec. 51.004.  LIBERAL CONSTRUCTION AND APPLICATION
Sec. 51.005.  BURDEN OF PROOF
Sec. 51.006.  WAIVER
Sec. 51.007.  MAINTENANCE OF RECORDS
Sec. 51.008.  FILING FEE
Sec. 51.009.  RULES
[Sections 51.010-51.050 reserved for expansion]
SUBCHAPTER B. REGISTRATION OF BUSINESS OPPORTUNITY
Sec. 51.051.  FILING OF DISCLOSURE STATEMENTS AND LIST
               OF SELLERS
Sec. 51.052.  UPDATING OF INFORMATION ON FILE
Sec. 51.053.  FILING OF DISCLOSURE DOCUMENT FROM OTHER
               REGULATORY AGENCY
Sec. 51.054.  FILING OF COPY OF BOND OR NOTIFICATION OF
               ACCOUNT
[Sections 51.055-51.100 reserved for expansion]
SUBCHAPTER C.  BOND, TRUST ACCOUNT, OR LETTER OF CREDIT
Sec. 51.101.  BOND, TRUST ACCOUNT, OR LETTER OF CREDIT
               REQUIRED
Sec. 51.102.  ACTION AGAINST BOND, TRUST ACCOUNT, OR
               LETTER OF CREDIT
[Sections 51.103-51.150 reserved for expansion]
SUBCHAPTER D.  DISCLOSURE STATEMENT
Sec. 51.151.  DISCLOSURE TO PURCHASER OF BUSINESS
               OPPORTUNITY
Sec. 51.152.  COVER SHEET OF DISCLOSURE STATEMENT
Sec. 51.153.  CONTENTS:  NAMES AND ADDRESSES
Sec. 51.154.  CONTENTS:  SALES PERIODS
Sec. 51.155.  CONTENTS: SERVICES DESCRIPTION
Sec. 51.156.  CONTENTS:  UPDATED FINANCIAL STATEMENT
Sec. 51.157.  CONTENTS:  TRAINING DESCRIPTION
Sec. 51.158.  CONTENTS:  SECURITY DESCRIPTION
Sec. 51.159.  CONTENTS: DELIVERY DATE; CANCELLATION OF
               CONTRACT
Sec. 51.160.  CONTENTS: SALES OR EARNINGS
               REPRESENTATION
Sec. 51.161.  CONTENTS:  LEGAL ACTION HISTORY
Sec. 51.162.  CONTENTS:  BANKRUPTCY OR REORGANIZATION
Sec. 51.163.  CONTENTS:  CONTRACT COPY
Sec. 51.164.  USE OF DISCLOSURE DOCUMENT FROM OTHER
               REGULATORY AGENCY
[Sections 51.165-51.200 reserved for expansion]
SUBCHAPTER E.  BUSINESS OPPORTUNITY CONTRACT
Sec. 51.201.  FORM OF BUSINESS OPPORTUNITY CONTRACT
Sec. 51.202.  DELIVERY OF COPIES OF DOCUMENTS TO
               PURCHASER
Sec. 51.203.  EFFECT OF ASSIGNMENT OF BUSINESS
               OPPORTUNITY CONTRACT
[Sections 51.204-51.250 reserved for expansion]
SUBCHAPTER F.  TERMINATION OF BUSINESS OPPORTUNITY REGISTRATION
Sec. 51.251.  VOLUNTARY TERMINATION OF BUSINESS
               OPPORTUNITY REGISTRATION
Sec. 51.252.  INVOLUNTARY TERMINATION OF BUSINESS
               OPPORTUNITY REGISTRATION
[Sections 51.253-51.300 reserved for expansion]
SUBCHAPTER G.  ENFORCEMENT
Sec. 51.301.  PROHIBITED ACTS
Sec. 51.302.  DECEPTIVE TRADE PRACTICE; REMEDIES
Sec. 51.303.  REVIEW AND SUIT BY ATTORNEY GENERAL
CHAPTER 51.  BUSINESS OPPORTUNITIES
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec.51.001.SHORT TITLE.  This chapter may be cited as the
Business Opportunity Act.  (Bus. & Com. Code, Sec. 41.001.)
       Sec.51.002.GENERAL DEFINITIONS.  In this chapter:
             (1)  "Business opportunity contract" means an
agreement that obligates or is intended to obligate a purchaser to a
seller.
             (2)  "Buy-back" or "secured investment" means a
representation that implies a purchaser's payment is protected from
loss.
             (3)  "Equipment" includes electrical devices, video
and audio devices, molds, display units, including display racks,
and machines, including coin-operated game machines and vending and
other machines that dispense products.
             (4)  "Initial consideration" means the total amount a
purchaser is obligated to pay under a business opportunity contract
before or at the time products, equipment, supplies, or services
are delivered or within six months after the date the purchaser
begins operation of the business opportunity plan. The term means
the total sale price if the contract states a specific total sale
price for purchase of the business opportunity plan and the total
sale price is to be paid as a down payment and one or more additional
payments. The term does not include the not-for-profit sale of
sales demonstration materials, samples, or equipment for not more
than $500.
             (5)  "Marketing program" means advice or training that
a seller or a person recommended by a seller gives to a purchaser
regarding the sale of products, equipment, supplies, or services.  
The term includes the preparation or provision of:
                   (A)  a brochure, pamphlet, or advertising
material, including promotional literature;
                   (B)  training regarding the promotion, operation,
or management of a business opportunity; or
                   (C)  operational, managerial, technical, or
financial guidelines or assistance.
             (6)  "Product" includes tangible personal property.
             (7)  "Purchaser" means a person who becomes or is
solicited to become obligated under a business opportunity
contract.
             (8)  "Seller" means a principal or agent who sells or
leases or offers to sell or lease a business opportunity.
             (9)  "Services" includes any assistance, guidance,
direction, work, labor, or other services provided by a seller to
initiate or maintain a business opportunity.
             (10)  "Supplies" includes materials used to make,
produce, grow, or breed a product or item.  (Bus. & Com. Code, Secs.
41.003(1), (2), (4), (5), (6), (7), (8), (9), (10), (11), (12).)
       Sec.51.003.DEFINITION OF BUSINESS OPPORTUNITY.  (a)  In
this chapter, "business opportunity" means a sale or lease for an
initial consideration of more than $500 of products, equipment,
supplies, or services that will be used by or for the purchaser to
begin a business in which the seller represents that:
             (1)  the purchaser will earn or is likely to earn a
profit in excess of the amount of the initial consideration the
purchaser paid; and
             (2)  the seller will:
                   (A)  provide a location or assist the purchaser in
finding a location for the use or operation of the products,
equipment, supplies, or services on premises that are not owned or
leased by the purchaser or seller;
                   (B)  provide a sales, production, or marketing
program; or
                   (C)  buy back or is likely to buy back products,
equipment, or supplies purchased or products made, produced, grown,
or bred by the purchaser using wholly or partly the products,
equipment, supplies, or services that the seller initially sold or
leased or offered for sale or lease to the purchaser.
       (b)  In this chapter, "business opportunity" does not
include:
             (1)  the sale or lease of an established and ongoing
business or enterprise that has actively conducted business before
the sale or lease, whether composed of one or more than one
component business or enterprise, if the sale or lease represents
an isolated transaction or series of transactions involving a bona
fide change of ownership or control of the business or enterprise or
liquidation of the business or enterprise;
             (2)  a sale by a retailer of goods or services under a
contract or other agreement to sell the inventory of one or more
ongoing leased departments to a purchaser who is granted the right
to sell the goods or services within or adjoining a retail business
establishment as a department or division of the retail business
establishment;
             (3)  a transaction that is:
                   (A)  regulated by the Texas Department of
Licensing and Regulation, the Texas Department of Insurance, the
Texas Real Estate Commission, or the director of the Motor Vehicle
Division of the Texas Department of Transportation; and
                   (B)  engaged in by a person licensed by one of
those agencies;
             (4)  a real estate syndication;
             (5)  a sale or lease to a business enterprise that also
sells or leases products, equipment, or supplies or performs
services:
                   (A)  that are not supplied by the seller; and
                   (B)  that the purchaser does not use with the
seller's products, equipment, supplies, or services;
             (6)  the offer or sale of a franchise as described by
the Petroleum Marketing Practices Act (15 U.S.C. Section 2801 et
seq.) and its subsequent amendments;
             (7)  the offer or sale of a business opportunity if the
seller:
                   (A)  has a net worth of $25 million or more
according to the seller's audited balance sheet as of a date not
earlier than the 13th month before the date of the transaction; or
                   (B)  is at least 80 percent owned by another
person who:
                         (i)  in writing unconditionally guarantees
performance by the person offering the business opportunity plan;
and
                         (ii)  has a net worth of more than $25
million according to the person's most recent audited balance sheet
as of a date not earlier than the 13th month before the date of the
transaction; or
             (8)  an arrangement defined as a franchise by 16 C.F.R.
Section 436.2(a) and its subsequent amendments if:
                   (A)  the franchisor complies in all material
respects in this state with 16 C.F.R. Part 436 and each order or
other action of the Federal Trade Commission; and
                   (B)  before offering for sale or selling a
franchise in this state, a person files with the secretary of state
a notice containing:
                         (i)  the name of the franchisor;
                         (ii)  the name under which the franchisor
intends to transact business; and
                         (iii)  the franchisor's principal business
address.
       (c)  The secretary of state shall prescribe the form of the
notice described by Subsection (b)(8)(B).  (Bus. & Com. Code, Sec.
41.004.)
       Sec.51.004.LIBERAL CONSTRUCTION AND APPLICATION.  (a)  
This chapter shall be liberally construed and applied to:
             (1)  protect persons against false, misleading, or
deceptive practices in the advertising, offering for sale or lease,
or sale or lease of business opportunities; and
             (2)  provide efficient and economical procedures to
secure that protection.
       (b)  In construing this chapter, a court to the extent
possible shall follow the interpretations given by the Federal
Trade Commission and the federal courts to Section 5(a)(1), Federal
Trade Commission Act (15 U.S.C. Section 45(a)(1)), and 16 C.F.R.
Part 436 and their subsequent amendments.  (Bus. & Com. Code, Sec.
41.002.)
       Sec.51.005.BURDEN OF PROOF.  A person who claims to be
exempt from this chapter has the burden of proving the exemption.  
(Bus. & Com. Code, Sec. 41.005.)
       Sec.51.006.WAIVER.  A waiver of this chapter is contrary
to public policy and void.  (Bus. & Com. Code, Sec. 41.009.)
       Sec.51.007.MAINTENANCE OF RECORDS.  (a)  A seller shall
maintain a complete set of books, records, and accounts of business
opportunity sales made by the seller.
       (b)  A document relating to a business opportunity sold or
leased shall be maintained until the fourth anniversary of the date
of the business opportunity contract.  (Bus. & Com. Code, Sec.
41.008.)
       Sec.51.008.FILING FEE. The secretary of state may charge a
reasonable fee to cover the costs incurred as a result of a filing
required by Subchapter B or Section 51.003 or 51.251.  (Bus. & Com.
Code, Sec. 41.007.)
       Sec.51.009.RULES. The secretary of state may adopt rules
to administer and enforce this chapter.  (Bus. & Com. Code, Sec.
41.006.)
[Sections 51.010-51.050 reserved for expansion]
SUBCHAPTER B. REGISTRATION OF BUSINESS OPPORTUNITY
       Sec. 51.051.  FILING OF DISCLOSURE STATEMENTS AND LIST OF
SELLERS.  Before a sale or offer for sale, including advertising, of
a business opportunity, the principal seller must register the
business opportunity with the secretary of state by filing:
             (1)  a copy of the disclosure statement required by
Subchapter D, except as provided by Section 51.053; and
             (2)  a list of the name and resident address of any
individual who sells or will sell the business opportunity for the
principal seller.  (Bus. & Com. Code, Sec. 41.051.)
       Sec.51.052.UPDATING OF INFORMATION ON FILE.  (a)  A copy
of a disclosure statement filed under Section 51.051 must be
updated through a new filing:
             (1)  annually; and
             (2)  when a material change occurs.
       (b)  The list filed under Section 51.051(2) must be updated
through a new filing every six months.  (Bus. & Com. Code, Sec.
41.052.)
       Sec. 51.053.  FILING OF DISCLOSURE DOCUMENT FROM OTHER
REGULATORY AGENCY.  Instead of filing with the secretary of state a
copy of a disclosure statement, a seller may file a copy of a
similar document required by the State Securities Board, Securities
and Exchange Commission, or Federal Trade Commission that contains
all the information required to be disclosed by this chapter.  (Bus. &
Com. Code, Sec. 41.054 (part).)
       Sec. 51.054.  FILING OF COPY OF BOND OR NOTIFICATION OF
ACCOUNT.  A principal seller who is required to obtain a bond or
establish a trust account under Subchapter C shall
contemporaneously file with the secretary of state a copy of:
             (1)  the bond; or
             (2)  the formal notification by the depository that the
trust account is established.  (Bus. & Com. Code, Sec. 41.053.)
[Sections 51.055-51.100 reserved for expansion]
SUBCHAPTER C.  BOND, TRUST ACCOUNT, OR LETTER OF CREDIT
       Sec. 51.101.  BOND, TRUST ACCOUNT, OR LETTER OF CREDIT
REQUIRED.  (a)  Before a seller makes a representation described by
Section 51.003(a)(1) or otherwise represents that the purchaser is
assured of making a profit from a business opportunity, the
principal seller must:
             (1)  obtain a surety bond from a surety company
authorized to transact business in this state;
             (2)  establish a trust account; or
             (3)  obtain an irrevocable letter of credit.
       (b)  The bond, trust account, or irrevocable letter of credit
must be:
             (1)  in an amount of $25,000 or more; and
             (2)  in favor of this state.  (Bus. & Com. Code, Sec.
41.101.)
       Sec. 51.102.  ACTION AGAINST BOND, TRUST ACCOUNT, OR LETTER
OF CREDIT.  (a)  A person may bring an action against the bond, trust
account, or irrevocable letter of credit obtained or established
under Section 51.101 to recover actual damages for:
             (1)  a violation of this chapter; or
             (2)  the seller's breach of:
                   (A)  the business opportunity contract; or
                   (B)  an obligation arising from a business
opportunity sale.
       (b)  The aggregate liability of the surety, trustee, or
issuer in an action under Subsection (a) may not exceed the amount
of the bond, trust account, or irrevocable letter of credit.  (Bus. &
Com. Code, Sec. 41.102.)
[Sections 51.103-51.150 reserved for expansion]
SUBCHAPTER D.  DISCLOSURE STATEMENT
       Sec. 51.151.  DISCLOSURE TO PURCHASER OF BUSINESS
OPPORTUNITY.  (a)  Except as provided by Section 51.164, a seller
must provide a purchaser with a written disclosure statement that
meets the requirements of this subchapter.
       (b)  The seller must provide the disclosure statement at
least 10 business days before the earlier of the date:
             (1)  the purchaser signs a business opportunity
contract; or
             (2)  the seller receives any consideration.  (Bus. &
Com. Code, Sec. 41.151.)
       Sec.51.152.COVER SHEET OF DISCLOSURE STATEMENT.  (a)  A
disclosure statement must have a cover sheet titled, in at least
12-point boldface capital letters, "DISCLOSURES REQUIRED BY TEXAS
LAW."  The following statement must appear below the title in at
least 10-point boldface type: "The State of Texas has not reviewed
and does not endorse, approve, recommend, or sponsor any business
opportunity. The information contained in this disclosure has not
been verified by the state. If you have any questions about this
investment, see an attorney before you sign a contract or
agreement."
       (b)  Only the title and required statement may appear on the
cover sheet.  (Bus. & Com. Code, Sec. 41.152.)
       Sec.51.153.CONTENTS: NAMES AND ADDRESSES.  A disclosure
statement must contain:
             (1)  the name of the seller;
             (2)  each name under which the seller has transacted,
is transacting, or intends to transact business;
             (3)  the name of any parent or affiliated company that
will engage in a business transaction with the purchaser or that
takes responsibility for statements made by the seller; and
             (4)  the names, addresses, and titles of:
                   (A)  the seller's officers, directors, trustees,
general partners, general managers, and principal executives;
                   (B)  shareholders owning more than 20 percent of
the shares of the seller; and
                   (C)  any other persons responsible for the
seller's business activities relating to the sale of business
opportunities.  (Bus. & Com. Code, Sec. 41.153.)
       Sec.51.154.CONTENTS: SALES PERIODS.  A disclosure
statement must:
             (1)  specify the period during which the seller has
sold business opportunities; and
             (2)  specify the period during which the seller has
sold business opportunities involving the products, equipment,
supplies, or services the seller is offering to the purchaser.  
(Bus. & Com. Code, Sec. 41.154.)
       Sec.51.155.CONTENTS: SERVICES DESCRIPTION.  A disclosure
statement must contain:
             (1)  a detailed description of the actual services the
seller undertakes to perform for the purchaser; and
             (2)  if the seller promises to perform services in
connection with the placement of products, equipment, or supplies
at a location:
                   (A)  the full nature of those services; and
                   (B)  the nature of any agreements to be made with
the owners or managers of that location.  (Bus. & Com. Code, Sec.
41.155.)
       Sec.51.156.CONTENTS: UPDATED FINANCIAL STATEMENT.  A
disclosure statement must contain a copy of a financial statement
of the seller that:
             (1)  was prepared according to generally accepted
accounting principles within the previous 13 months; and
             (2)  has been updated to reflect any material change in
the seller's financial condition.  (Bus. & Com. Code, Sec. 41.156.)
       Sec.51.157.CONTENTS: TRAINING DESCRIPTION.  If the
seller promises training, the disclosure statement must contain a
complete description of the training, including:
             (1)  the length of the training; and
             (2)  any costs of the training that the purchaser will
be required to incur, including travel and lodging expenses.  (Bus. &
Com. Code, Sec. 41.157.)
       Sec.51.158.CONTENTS: SECURITY DESCRIPTION.  If the
seller is required to obtain a bond or establish a trust account,
the disclosure statement must contain one of the following
statements, as applicable:
             (1)  "As required by Texas law, the seller has secured a
bond issued by ______, a surety company authorized to do business in
this state. Before signing a contract to purchase this business
opportunity, you should confirm the bond's status with the surety
company."; or
             (2)  "As required by Texas law, the seller has
established a trust account with ______. Before signing a contract
to purchase this business opportunity, you should confirm with the
bank or savings institution the current status of the trust
account."  (Bus. & Com. Code, Sec. 41.158.)
       Sec. 51.159.  CONTENTS:  DELIVERY DATE; CANCELLATION OF
CONTRACT. If the seller is required to deliver to the purchaser the
product, equipment, or supplies necessary to begin substantial
operation of the business and states a definite or approximate
delivery date for the product, equipment, or supplies, the
disclosure statement must contain the following statement: "If the
seller fails to deliver the product, equipment, or supplies
necessary to begin substantial operation of the business within 45
days of the delivery date stated in your contract, you may notify
the seller in writing and cancel your contract."  (Bus. & Com. Code,
Sec. 41.159.)
       Sec.51.160.CONTENTS: SALES OR EARNINGS REPRESENTATION.
If the seller makes a statement concerning sales or earnings that
may be made through the business opportunity, the disclosure
statement must contain a statement disclosing:
             (1)  the total number of purchasers of business
opportunities involving the product, equipment, supplies, or
services being offered who to the seller's knowledge have, not
earlier than the third year before the date of the disclosure
statement, actually achieved sales of or received earnings in the
amount or range specified; and
             (2)  the total number of purchasers who, not earlier
than the third year before the date of the disclosure statement,
purchased business opportunities involving the product, equipment,
supplies, or services being offered.  (Bus. & Com. Code, Sec.
41.160.)
       Sec.51.161.CONTENTS: LEGAL ACTION HISTORY.  (a)  A
disclosure statement must contain a statement disclosing any person
described by Section 51.153 who:
             (1)  has, during the previous seven fiscal years:
                   (A)  been convicted of a felony, or pleaded nolo
contendere to a felony charge, involving fraud, embezzlement,
fraudulent conversion, or misappropriation of property; or
                   (B)  been held liable in a civil action resulting
in a final judgment, or has settled out of court a civil action,
involving:
                         (i)  allegations of fraud, embezzlement,
fraudulent conversion, or misappropriation of property;
                         (ii)  the use of untrue or misleading
representations in an attempt to sell or dispose of property; or
                         (iii)  the use of unfair, unlawful, or
deceptive business practices;
             (2)  is a party to a civil action involving:
                   (A)  allegations of fraud, embezzlement,
fraudulent conversion, or misappropriation of property;
                   (B)  the use of untrue or misleading
representations in an attempt to sell or dispose of property; or
                   (C)  the use of unfair, unlawful, or deceptive
business practices; or
             (3)  is subject to an injunction or restrictive order
relating to business activity as a result of an action brought by a
public agency or department.
       (b)  A statement required by Subsection (a) must include:
             (1)  the identity and location of any court or agency;
             (2)  the date of any entry of a plea of nolo contendere,
conviction, judgment, or decision;
             (3)  any penalty imposed;
             (4)  any damages assessed;
             (5)  the terms of any settlement or order; and
             (6)  the date, nature, and issuer of any order or
ruling.  (Bus. & Com. Code, Sec. 41.161.)
       Sec.51.162.CONTENTS: BANKRUPTCY OR REORGANIZATION.  (a)  
A disclosure statement must contain a statement disclosing any
person described by Section 51.153 who has, during the previous
seven fiscal years:
             (1)  filed in bankruptcy;
             (2)  been adjudged bankrupt;
             (3)  been reorganized because of insolvency; or
             (4)  been a principal, director, executive officer, or
partner of any other person that, during or not later than the first
anniversary of the end of the period the person held the position in
relation to the other person, filed in bankruptcy, was adjudged
bankrupt, or was reorganized because of insolvency.
       (b)  A statement required by Subsection (a)(4) must include:
             (1)  the name and location of the person who filed in
bankruptcy, was adjudged bankrupt, or was reorganized;
             (2)  the date of the filing, adjudication, or
reorganization; and
             (3)  any other material fact relating to the filing,
adjudication, or reorganization.  (Bus. & Com. Code, Sec. 41.162.)
       Sec.51.163.CONTENTS: CONTRACT COPY. A disclosure
statement must contain a copy of the business opportunity contract
that the seller uses as a matter of course and that will be
presented to the purchaser at closing.  (Bus. & Com. Code, Sec.
41.163.)
       Sec. 51.164.  USE OF DISCLOSURE DOCUMENT FROM OTHER
REGULATORY AGENCY.  Instead of providing a disclosure statement to
a purchaser under this subchapter, a seller may provide a copy of a
similar document required by the State Securities Board, Securities
and Exchange Commission, or Federal Trade Commission that contains
all the information required to be disclosed by this chapter.  (Bus. &
Com. Code, Sec. 41.054 (part).)
[Sections 51.165-51.200 reserved for expansion]
SUBCHAPTER E.  BUSINESS OPPORTUNITY CONTRACT
       Sec.51.201.FORM OF BUSINESS OPPORTUNITY CONTRACT.  A
business opportunity contract must be in writing and include, in
10-point type or in handwriting of an equivalent size, the
following:
             (1)  the terms of payment, including the initial
consideration, down payment, and additional payments required;
             (2)  a detailed description of the acts or services the
seller undertakes to perform for the purchaser;
             (3)  the seller's principal business address;
             (4)  the name and address of the seller's agent in this
state authorized to receive service of process;
             (5)  the delivery date or, if the contract provides for
staggered delivery times to the purchaser, the approximate delivery
date of the products, equipment, or supplies the seller is to:
                   (A)  deliver to the purchaser's home or business
address; or
                   (B)  place at a location owned or managed by a
person other than the purchaser; and
             (6)  a complete description of the nature of the
buy-back or security arrangement if the seller has represented
orally or in writing when selling, leasing, soliciting, or offering
a business opportunity that there is a buy-back or that the initial
consideration is secured.  (Bus. & Com. Code, Sec. 41.201.)
       Sec.51.202.DELIVERY OF COPIES OF DOCUMENTS TO PURCHASER.  
A copy of the completed business opportunity contract and any other
document the seller requires the purchaser to sign shall be given to
the purchaser at the time the purchaser signs the contract.  (Bus. &
Com. Code, Sec. 41.202.)
       Sec. 51.203.  EFFECT OF ASSIGNMENT OF BUSINESS OPPORTUNITY
CONTRACT.  An assignee of a business opportunity contract or of the
seller's rights under the contract is subject to all equities,
rights, and defenses of the purchaser against the seller.  (Bus. &
Com. Code, Sec. 41.203.)
[Sections 51.204-51.250 reserved for expansion]
SUBCHAPTER F.  TERMINATION OF BUSINESS OPPORTUNITY REGISTRATION
       Sec. 51.251.  VOLUNTARY TERMINATION OF BUSINESS OPPORTUNITY
REGISTRATION.  The principal seller of a registered business
opportunity may voluntarily terminate the business opportunity's
registration with the secretary of state if:
             (1)  the registered business opportunity will no longer
be offered in this state;
             (2)  the registered business opportunity has changed to
the extent that it no longer meets the definition of a business
opportunity under Section 51.003(a);
             (3)  the registered business opportunity has become
exempt under Section 51.003(b); or
             (4)  the principal seller offering the registered
business opportunity ceases to exist as a legal entity.  (Bus. &
Com. Code, Sec. 41.251.)
       Sec. 51.252.  INVOLUNTARY TERMINATION OF BUSINESS
OPPORTUNITY REGISTRATION.  (a)  The secretary of state may
terminate the registration of a business opportunity registered
under Section 51.051 if the seller does not comply with Section
51.052.
       (b)  The secretary of state must give the business
opportunity registrant notice of the delinquency not later than the
31st day before the date of termination of the business opportunity
registration under Subsection (a).
       (c)  The notice of delinquency must be given by certified
mail addressed to the registered agent or the principal place of
business of the business opportunity registrant noted in the latest
filing made under this chapter.
       (d)  The secretary of state may adopt rules governing:
             (1)  the termination of a delinquent registration;
             (2)  the effective date of the termination; and
             (3)  the grace period, if any.  (Bus. & Com. Code, Sec.
41.252.)
[Sections 51.253-51.300 reserved for expansion]
SUBCHAPTER G.  ENFORCEMENT
       Sec.51.301.PROHIBITED ACTS.  A seller may not:
             (1)  employ a representation, device, scheme, or
artifice to deceive a purchaser;
             (2)  make an untrue statement of a material fact or omit
to state a material fact in connection with the documents and
information required to be provided to the secretary of state or
purchaser;
             (3)  represent that the business opportunity provides
or will provide income or earning potential unless the seller:
                   (A)  has documented data to substantiate the
representation of income or earning potential; and
                   (B)  discloses the data to the purchaser when the
representation is made; or
             (4)  make a claim or representation that is
inconsistent with the information required to be disclosed by this
chapter in:
                   (A)  advertising or other promotional material;
or
                   (B)  an oral sales presentation, solicitation, or
discussion between the seller and the purchaser.  (Bus. & Com. Code,
Sec. 41.301.)
       Sec.51.302.DECEPTIVE TRADE PRACTICE; REMEDIES.  (a) A
violation of this chapter is a false, misleading, or deceptive act
or practice under Section 17.46.
       (b)  A public or private right or remedy prescribed by
Chapter 17 may be used to enforce this chapter.  (Bus. & Com. Code,
Sec. 41.302.)
       Sec.51.303.REVIEW AND SUIT BY ATTORNEY GENERAL.  (a)  The
attorney general may review the copy of a disclosure statement
filed with the secretary of state under Subchapter B.
       (b)  If the disclosure statement fails to comply with this
chapter, the attorney general may:
             (1)  notify the secretary of state and the seller in
writing of the deficiency; and
             (2)  file suit to enjoin the seller from transacting
business until the failure to comply has been corrected.
       (c)  If the attorney general notifies the secretary of state
under Subsection (b), the secretary of state shall:
             (1)  attach a copy of the notice to the front of the
disclosure statement; and
             (2)  on inquiry of the status of the disclosure
statement, disclose that a statement has been filed but that the
attorney general has questioned the correctness of the statement.  (Bus. & Com. Code, Sec. 41.303.)
CHAPTER 52. INVENTION DEVELOPMENT SERVICES
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 52.001.  SHORT TITLE
Sec. 52.002.  DEFINITIONS
Sec. 52.003.  APPLICABILITY OF CHAPTER TO CONTRACT FOR
               INVENTION DEVELOPMENT SERVICES
Sec. 52.004.  WAIVER BY CUSTOMER PROHIBITED
[Sections 52.005-52.050 reserved for expansion]
SUBCHAPTER B. FINANCIAL REQUIREMENTS OF INVENTION DEVELOPERS
Sec. 52.051.  BOND REQUIRED
Sec. 52.052.  BENEFICIARY OF BOND; CLAIM AGAINST BOND
Sec. 52.053.  CASH DEPOSIT INSTEAD OF BOND
[Sections 52.054-52.100 reserved for expansion]
SUBCHAPTER C. INVENTION DEVELOPMENT SERVICES CONTRACT
Sec. 52.101.  WRITTEN CONTRACT REQUIRED; CUSTOMER COPY
Sec. 52.102.  MANDATORY CONTRACT TERMS
Sec. 52.103.  MULTIPLE CONTRACTS
Sec. 52.104.  PAYMENT FOR SERVICES; OPTION TO TERMINATE
               CONTRACT
Sec. 52.105.  COVER NOTICE REQUIRED
Sec. 52.106.  QUARTERLY REPORTS TO CUSTOMER REQUIRED
[Sections 52.107-52.150 reserved for expansion]
SUBCHAPTER D. ENFORCEMENT
Sec. 52.151.  CONTRACT VOIDABLE
Sec. 52.152.  PRIVATE CAUSE OF ACTION
Sec. 52.153.  DECEPTIVE TRADE PRACTICE
Sec. 52.154.  MUTUALLY EXCLUSIVE REMEDIES
Sec. 52.155.  PRESUMPTION OF INJURY
Sec. 52.156.  ENFORCEMENT BY ATTORNEY GENERAL
Sec. 52.157.  APPLICATION OF OTHER LAWS
CHAPTER 52. INVENTION DEVELOPMENT SERVICES
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec.52.001.SHORT TITLE. This chapter may be cited as the
Regulation of Invention Development Services Act. (V.A.C.S. Art.
9020, Sec. 1.)
       Sec.52.002.DEFINITIONS. In this chapter:
             (1)  "Customer" means:
                   (A)  an individual who enters into a contract with
an invention developer for invention development services; or
                   (B)  a firm, partnership, corporation, or other
entity that enters into a contract with an invention developer for
invention development services and is not purchasing those services
as an adjunct to the traditional commercial enterprises in which
the entity engages as a business.
             (2)  "Invention" means a discovery, process, machine,
design, formulation, product, concept, idea, or any combination of
these, regardless of whether patentable.
             (3)  "Invention developer" means an individual, firm,
partnership, or corporation, or an agent, employee, officer,
partner, or independent contractor of one of those entities, who:
                   (A)  performs or offers to perform invention
development services for a customer; and
                   (B)  is not:
                         (i)  a federal, state, or local government
department or agency;
                         (ii)  a nonprofit, charitable, scientific,
or educational organization organized under the Texas Non-Profit
Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
Statutes) or formed under Title 1 and Chapter 22, Business
Organizations Code, or described by Section 170(b)(1)(A), Internal
Revenue Code of 1986, as amended;
                         (iii)  an attorney acting within the scope
of the attorney's professional license;
                         (iv)  a person registered to practice before
the United States Patent and Trademark Office and acting within the
scope of that person's professional license; or
                         (v)  a person, firm, corporation,
association, or other entity that does not charge a fee, including
reimbursement for expenditures made or costs incurred by the
entity, for invention development services other than payment made
from a portion of the income a customer received by virtue of an act
performed by the entity.
             (4)  "Invention development services" means an act done
by or for an invention developer for the invention developer's
procurement or attempted procurement of a licensee or buyer of an
intellectual property right in an invention, including:
                   (A)  evaluating, perfecting, marketing, or
brokering an invention;
                   (B)  performing a patent search; and
                   (C)  preparing or prosecuting a patent
application by a person not registered to practice before the
United States Patent and Trademark Office. (V.A.C.S. Art. 9020,
Secs. 2, 3, 4.)
       Sec. 52.003.  APPLICABILITY OF CHAPTER TO CONTRACT FOR
INVENTION DEVELOPMENT SERVICES. This chapter applies to each
contract under which an invention developer agrees to perform
invention development services for a customer. (V.A.C.S. Art.
9020, Sec. 5(a) (part).)
       Sec.52.004.WAIVER BY CUSTOMER PROHIBITED. A waiver by a
customer of a provision of this chapter is void. (V.A.C.S. Art.
9020, Sec. 9(a) (part).)
[Sections 52.005-52.050 reserved for expansion]
SUBCHAPTER B. FINANCIAL REQUIREMENTS OF INVENTION DEVELOPERS
       Sec.52.051.BOND REQUIRED. (a) Except as provided by
Section 52.053, an invention developer performing or offering to
perform invention development services in this state shall maintain
a bond issued by a surety company authorized to transact business in
this state.
       (b)  The principal amount of the bond must equal at least the
greater of:
             (1)  five percent of the invention developer's gross
income from the invention development business in this state during
the invention developer's last fiscal year; or
             (2)  $25,000.
       (c)  The invention developer must file a copy of the bond
with the secretary of state before the date the invention developer
begins business in this state.
       (d)  Before the 91st day after the last day of the invention
developer's fiscal year, the invention developer shall change the
amount of the bond if necessary to conform with this section and
Section 52.052. (V.A.C.S. Art. 9020, Sec. 11(a).)
       Sec.52.052.BENEFICIARY OF BOND; CLAIM AGAINST BOND. (a)
The bond required by Section 52.051 must be:
             (1)  in favor of this state; and
             (2)  for the benefit of any person who, after entering
into a contract for invention development services with the
invention developer, is damaged by fraud, dishonesty, or failure to
provide the invention developer's services in performance of the
contract.
       (b)  A person making a claim against the bond may bring an
action against the invention developer and the surety. The
aggregate liability of the surety to all persons for all breaches of
conditions of the bond required by this section is limited to the
amount of the bond. (V.A.C.S. Art. 9020, Sec. 11(b).)
       Sec.52.053.CASH DEPOSIT INSTEAD OF BOND. Instead of
furnishing the bond required by Section 52.051, the invention
developer may provide for, in an amount equal to the amount of the
bond required:
             (1)  cash deposited with the secretary of state;
             (2)  a certificate of deposit payable to the secretary
of state and issued by a bank that is:
                   (A)  transacting business in this state; and
                   (B)  insured by the Federal Deposit Insurance
Corporation;
             (3)  an investment certificate of a share account
assigned to the secretary of state and issued by a savings and loan
association that is:
                   (A)  transacting business in this state; and
                   (B)  insured by the Federal Deposit Insurance
Corporation; or
             (4)  a bearer bond issued by the United States
government or this state. (V.A.C.S. Art. 9020, Sec. 11(c).)
[Sections 52.054-52.100 reserved for expansion]
SUBCHAPTER C. INVENTION DEVELOPMENT SERVICES CONTRACT
       Sec.52.101.WRITTEN CONTRACT REQUIRED; CUSTOMER COPY. (a)
A contract for invention development services must be in writing.
       (b)  The invention developer shall give a copy of the
contract to the customer at the time the customer signs the
contract. (V.A.C.S. Art. 9020, Sec. 5(a) (part).)
       Sec.52.102.MANDATORY CONTRACT TERMS. (a) A contract for
invention development services must contain in boldfaced type of
not less than 10-point size:
             (1)  the payment terms;
             (2)  the contract termination rights required by
Section 52.104;
             (3)  a full, clear, and concise description of the
specific acts or services that the invention developer agrees to
perform for the customer;
             (4)  a statement of whether the invention developer
agrees to construct, sell, or distribute one or more prototypes,
models, or devices embodying the customer's invention;
             (5)  the full name and principal place of business of
the invention developer;
             (6)  the name and principal place of business of any
parent, subsidiary, or affiliated company that may engage in
performing any of the invention development services;
             (7)  if the invention developer makes an oral or
written representation of estimated or projected customer
earnings, a statement of estimated or projected customer earnings
and a description of the data on which the estimation or projection
is based;
             (8)  the name and address of the custodian of all
records and correspondence pertaining to the invention development
services described by the contract;
             (9)  a statement that the invention developer:
                   (A)  is required to maintain all records and
correspondence relating to performance of the invention
development services for the customer until the second anniversary
of the date the contract expires; and
                   (B)  on seven days' written notice will make the
invention development services records and correspondence
available to the customer or the customer's representative for
review and copying at the customer's reasonable expense on the
invention developer's premises during normal business hours; and
             (10)  a time schedule for performance of the invention
development services, including an estimated date by which
performance is expected to be completed.
       (b)  An invention developer is a fiduciary to the extent that
the description of specific acts or services required by Subsection
(a)(3) gives the invention developer discretion in determining
which acts or services will be performed. (V.A.C.S. Art. 9020, Sec.
8.)
       Sec.52.103.MULTIPLE CONTRACTS. If it is the invention
developer's normal practice to seek more than one contract in
connection with an invention or if the invention developer normally
seeks to perform services in connection with an invention in more
than one phase with the performance of each phase covered in one or
more subsequent contracts, the invention developer shall give to
the customer at the time the customer signs the first contract:
             (1)  a written statement describing that practice; and
             (2)  a written summary of the developer's normal terms,
if any, for subsequent contracts, including the approximate amount
of the developer's normal fees or other consideration that the
developer may require from the customer. (V.A.C.S. Art. 9020, Sec.
5(b).)
       Sec. 52.104.  PAYMENT FOR SERVICES; OPTION TO TERMINATE
CONTRACT. (a) For purposes of this section, delivery of a
promissory note, bill of exchange, or negotiable instrument of any
kind to the invention developer or to a third party for the benefit
of the invention developer is payment, regardless of the date or
dates appearing on the instrument.
       (b)  Notwithstanding any contractual provision to the
contrary, payment for invention development services may not be
required, made, or received before the fourth working day after the
date the customer receives a copy of the contract for invention
development services signed by the invention developer and the
customer.
       (c)  Until the payment for invention development services is
made, the parties to the contract have the option to terminate the
contract. The customer may exercise the option to terminate by
refraining from making payment to the invention developer. The
invention developer may exercise the option to terminate by giving
to the customer a written notice of the invention developer's
exercise of the option. The written notice becomes effective when
the customer receives the notice. (V.A.C.S. Art. 9020, Secs. 5(c),
(d), (e).)
       Sec.52.105.COVER NOTICE REQUIRED. (a) A contract for
invention development services must have attached a conspicuous and
legible cover sheet that contains:
             (1)  the name, home address, office address, and local
office address of the invention developer; and
             (2)  the following notice in boldfaced type of not less
than 10-point size:
       THIS CONTRACT BETWEEN YOU AND AN INVENTION DEVELOPER IS
REGULATED BY THE STATE OF TEXAS' REGULATION OF INVENTION
DEVELOPMENT SERVICES ACT. YOU ARE NOT PERMITTED OR REQUIRED TO MAKE
ANY PAYMENTS UNDER THIS CONTRACT UNTIL FOUR (4) WORKING DAYS AFTER
YOU SIGN THIS CONTRACT AND RECEIVE A COMPLETED COPY OF IT.
       IF YOU ASSIGN EVEN A PARTIAL INTEREST IN THE INVENTION TO THE
INVENTION DEVELOPER, THE INVENTION DEVELOPER MAY HAVE THE RIGHT TO
SELL OR DISPOSE OF THE INVENTION WITHOUT YOUR CONSENT AND MAY NOT
HAVE TO SHARE THE PROFITS WITH YOU.
       THE TOTAL NUMBER OF CUSTOMERS WHO HAVE CONTRACTED WITH THE
INVENTION DEVELOPER SINCE (year) IS (number). THE TOTAL NUMBER OF
CUSTOMERS KNOWN BY THIS INVENTION DEVELOPER TO HAVE RECEIVED, BY
VIRTUE OF THIS INVENTION DEVELOPER'S PERFORMANCE, AN AMOUNT OF
MONEY IN EXCESS OF THE AMOUNT PAID BY THE CUSTOMER TO THIS INVENTION
DEVELOPER IS (number).
       YOU ARE ENCOURAGED TO CONSULT WITH A QUALIFIED ATTORNEY
BEFORE SIGNING THIS CONTRACT. BY PROCEEDING WITHOUT THE ADVICE OF A
QUALIFIED ATTORNEY, YOU COULD LOSE ANY RIGHTS YOU MIGHT HAVE IN YOUR
IDEA OR INVENTION.
       (b)  The invention developer shall complete the cover sheet
by providing the proper information in the blanks of the cover
sheet. In the first blank the invention developer shall enter the
later of the year that the invention developer began to transact
business or May 7, 1981. The invention developer may round the
numbers the invention developer enters in the last two blanks to the
nearest 100 and, in computing the numbers, may exclude persons who
have contracted with the invention developer during the three
calendar months preceding the date of the contract. If the number
to be inserted in the third blank is zero, the invention developer
shall enter a zero in the blank.
       (c)  The cover sheet may not contain anything other than the
information required by Subsection (a). (V.A.C.S. Art. 9020, Sec.
6.)
       Sec.52.106.QUARTERLY REPORTS TO CUSTOMER REQUIRED. At
least once each calendar quarter during the term of a contract for
invention development services, the invention developer shall
deliver to the customer at the address specified in the contract a
written report that identifies the contract and contains:
             (1)  a full, clear, and concise description of the
services performed up to the date of the report and of the services
to be performed; and
             (2)  the name and address of each person to whom the
subject matter of the contract has been disclosed, the reason for
each disclosure, the nature of the disclosure, and copies of all
responses received as a result of those disclosures. (V.A.C.S.
Art. 9020, Sec. 7.)
[Sections 52.107-52.150 reserved for expansion]
SUBCHAPTER D. ENFORCEMENT
       Sec.52.151.CONTRACT VOIDABLE. A contract for invention
development services is voidable at the option of the customer if
the contract:
             (1)  does not substantially comply with this chapter;
or
             (2)  was entered into in reliance on any false,
fraudulent, or misleading information, representation, notice, or
advertisement of the invention developer.  (V.A.C.S. Art. 9020,
Sec. 9(a) (part).)
       Sec.52.152.PRIVATE CAUSE OF ACTION. (a) This section
applies only to a customer who is injured by an invention
developer's:
             (1)  violation of this chapter;
             (2)  false or fraudulent statement, representation, or
omission of material fact; or
             (3)  failure to make all disclosures required by this
chapter.
       (b)  A customer to whom this section applies may recover in a
civil action against the invention developer:
             (1)  the greater of:
                   (A)  the amount of any actual damages sustained by
the customer; or
                   (B)  $1,000;
             (2)  court costs; and
             (3)  attorney's fees.  (V.A.C.S. Art. 9020, Sec. 9(b).)
       Sec.52.153.DECEPTIVE TRADE PRACTICE. The following acts,
omissions, or failures by an invention developer constitute a
deceptive trade practice under Chapter 17:
             (1)  a violation of this chapter;
             (2)  an omission of material fact; or
             (3)  a failure to make a disclosure required by this
chapter. (V.A.C.S. Art. 9020, Sec. 9(c) (part).)
       Sec.52.154.MUTUALLY EXCLUSIVE REMEDIES. Remedies
available under Sections 52.152 and 52.153 are mutually exclusive.
(V.A.C.S. Art. 9020, Sec. 9(c) (part).)
       Sec.52.155.PRESUMPTION OF INJURY. For purposes of
Sections 52.152 and 52.153, a rebuttable presumption of injury is
established by:
             (1)  a substantial violation of this chapter by an
invention developer; or
             (2)  a customer's execution of a contract for invention
development services in reliance on a false or fraudulent
statement, representation, or an omission of material fact.
(V.A.C.S. Art. 9020, Sec. 9(d).)
       Sec.52.156.ENFORCEMENT BY ATTORNEY GENERAL. (a) The
attorney general shall enforce this chapter.
       (b)  The attorney general may:
             (1)  recover a civil penalty not to exceed $2,000 for
each violation of this chapter; and
             (2)  seek equitable relief to restrain a violation of
this chapter. (V.A.C.S. Art. 9020, Sec. 10.)
       Sec.52.157.APPLICATION OF OTHER LAWS.  This chapter does
not nullify or limit any obligation, right, or remedy that is
applicable or available under the law of this state. (V.A.C.S. Art. 9020, Sec. 12.)
CHAPTER 53. STORE LEASES
Sec. 53.001.  STORE LEASE CONTRACT
CHAPTER 53. STORE LEASES
       Sec.53.001.STORE LEASE CONTRACT. (a)  A provision of a
lease contract that requires a store to be open when another store
located in the same shopping center is open does not apply on Sunday
unless the provision specifically states that it applies on Sunday.
       (b)  This section applies to a contract executed before or after September 1, 1985. (Bus. & Com. Code, Sec. 35.44.)
CHAPTER 54. COMPENSATION AGREEMENTS FOR SALES REPRESENTATIVES
Sec. 54.001.  DEFINITIONS
Sec. 54.002.  CONTRACT
Sec. 54.003.  PAYMENT ON TERMINATION OF CERTAIN
               COMPENSATION AGREEMENTS
Sec. 54.004.  DAMAGES
Sec. 54.005.  PERSONAL JURISDICTION
Sec. 54.006.  WAIVER
CHAPTER 54. COMPENSATION AGREEMENTS FOR SALES REPRESENTATIVES
       Sec.54.001.DEFINITIONS.  In this chapter:
             (1)  "Commission" means compensation paid a sales
representative by a principal in an amount based on a percentage of
the dollar amount of certain orders for or sales of the principal's
product.
             (2)  "Principal" means a person who:
                   (A)  manufactures, produces, imports, or
distributes a product for sale;
                   (B)  uses a sales representative to solicit orders
for the product; and
                   (C)  compensates the sales representative wholly
or partly by commission.
             (3)  "Sales representative" means an independent
contractor who solicits, on behalf of a principal, orders for the
purchase at wholesale of the principal's product. (Bus. & Com.
Code, Sec. 35.81.)
       Sec.54.002.CONTRACT. (a)  A contract between a principal
and a sales representative under which the sales representative is
to solicit wholesale orders within this state must:
             (1)  be in writing or in a computer-based medium; and
             (2)  state the method by which the sales
representative's commission is to be computed and paid.
       (b)  The principal shall provide the sales representative
with a copy of the contract.
       (c)  A provision in the contract establishing venue for an
action arising under the contract in a state other than this state
is void. (Bus. & Com. Code, Sec. 35.82.)
       Sec. 54.003.  PAYMENT ON TERMINATION OF CERTAIN COMPENSATION
AGREEMENTS. If a compensation agreement between a sales
representative and a principal that does not comply with Section
54.002 is terminated, the principal shall pay all commissions due
the sales representative not later than the 30th working day after
the date of the termination. (Bus. & Com. Code, Sec. 35.83.)
       Sec.54.004.DAMAGES. A principal who fails to comply with
a provision of a contract under Section 54.002 relating to payment
of a commission or who fails to pay a commission as required by
Section 54.003 is liable to the sales representative in a civil
action for:
             (1)  three times the unpaid commission due the sales
representative; and
             (2)  reasonable attorney's fees and costs. (Bus. & Com.
Code, Sec. 35.84.)
       Sec.54.005.PERSONAL JURISDICTION. A principal who is not
a resident of this state and who enters into a contract subject to
this chapter is considered to be transacting business in this state
for purposes of the exercise of personal jurisdiction over the
principal. (Bus. & Com. Code, Sec. 35.85.)
       Sec.54.006.WAIVER. A provision of this chapter may not be
waived, whether by an express waiver or by an attempt to make a
contract or agreement subject to the laws of another state. A
waiver of a provision of this chapter is void. (Bus. & Com. Code, Sec. 35.86.)
CHAPTER 55.  FARM, INDUSTRIAL, OFF-ROAD CONSTRUCTION, FORESTRY
HARVESTING, AND OUTDOOR POWER EQUIPMENT DEALER AGREEMENTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 55.001.  DEFINITIONS
Sec. 55.002.  SECURITY INTEREST
Sec. 55.003.  WAIVER OF CHAPTER
[Sections 55.004-55.050 reserved for expansion]
SUBCHAPTER B. PROVISIONS REGARDING DEALER AGREEMENT OR DEALERSHIP
Sec. 55.051.  SUPPLEMENTARY AGREEMENT
Sec. 55.052.  CHANGE IN COMPETITIVE CIRCUMSTANCES
Sec. 55.053.  INTEREST IN DEALERSHIP BY SALE OR
               TRANSFER
Sec. 55.054.  TRANSFER OF CONTROLLING INTEREST IN
               DEALERSHIP BY SUCCESSION
Sec. 55.055.  CONTINUATION OF AGREEMENT
Sec. 55.056.  CAUSE REQUIRED FOR TERMINATION
Sec. 55.057.  RENOVATION OR ADDITIONAL SPACE
[Sections 55.058-55.100 reserved for expansion]
SUBCHAPTER C. WARRANTIES
Sec. 55.101.  APPLICABILITY OF SUBCHAPTER
Sec. 55.102.  ACCEPTANCE OR REJECTION OF WARRANTY CLAIM
Sec. 55.103.  SUPPLIER'S RECOVERY OF WARRANTY CLAIM
Sec. 55.104.  PURCHASER'S WARRANTY AGREEMENT
[Sections 55.105-55.150 reserved for expansion]
SUBCHAPTER D. DELIVERY, SALE, AND RETURN OF EQUIPMENT
Sec. 55.151.  COERCED ORDERS, DELIVERIES, OR REFUSALS
               TO PURCHASE PROHIBITED
Sec. 55.152.  DISCRIMINATION AMONG DEALERS
Sec. 55.153.  LATE DELIVERY OF BACK-ORDERED SEASONAL
               DEMAND ITEM
Sec. 55.154.  SALES TO AFFILIATED DEALER
Sec. 55.155.  RETURN OF INVENTORY; RESPONSIBILITY FOR
               COSTS
Sec. 55.156.  RETURN OF DATA PROCESSING OR PERIPHERAL
               EQUIPMENT, SOFTWARE, OR CERTAIN TOOLS;
               RESPONSIBILITY FOR COSTS
Sec. 55.157.  SUPPLIER'S LIABILITY FOR LATE PAYMENT
Sec. 55.158.  EXCEPTIONS TO SUPPLIER'S REPURCHASE,
               PURCHASE, OR ASSUMPTION RESPONSIBILITY
[Sections 55.159-55.200 reserved for expansion]
SUBCHAPTER E. ENFORCEMENT
Sec. 55.201.  ACTION FOR VIOLATION OF CHAPTER
CHAPTER 55.  FARM, INDUSTRIAL, OFF-ROAD CONSTRUCTION, FORESTRY
HARVESTING, AND OUTDOOR POWER EQUIPMENT DEALER AGREEMENTS
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.55.001.DEFINITIONS.  In this chapter:
             (1)  "Controlling interest" means 50 percent or more
ownership of or a managing interest in a dealership.
             (2)  "Current price" means an amount equal to the price
listed in the supplier's printed price list in effect when a dealer
agreement is terminated, less applicable trade and cash discounts.
             (3)  "Dealer" means a person in the business of the
retail sale of equipment. The term does not include an individual,
partnership, or corporation who:
                   (A)  is primarily engaged in the retail sale and
service of off-road construction and earth-moving equipment;
                   (B)  has purchased 75 percent or more of the
dealer's total new product inventory from a single supplier under
all agreements with that supplier; and
                   (C)  has a total annual average sales volume in
excess of $100 million for the preceding three years with that
single supplier for the territory for which the dealer is
responsible in this state.
             (4)  "Dealer agreement" means an oral or written
contract, of definite or indefinite duration, between a supplier
and a dealer, that states the rights and obligations of the parties
with respect to the purchase or sale of equipment.
             (5)  "Dealer cost" means an amount equal to the sum of
the original invoice price that the dealer paid for inventory and
the cost to the dealer of the inventory's delivery from the supplier
to the dealer, less applicable discounts.
             (6)  "Dealership" means the retail sale business
engaged in by a dealer under a dealer agreement.
             (7)  "Equipment" means farm tractors, farm implements,
utility tractors, industrial tractors, forklifts,
material-handling equipment, forestry harvesting equipment,
off-road construction equipment, and outdoor power equipment and
any attachments to or repair parts for those items.
             (8)  "Inventory" means new or unused equipment that is
provided by a supplier to a dealer under a dealer agreement and that
was:
                   (A)  purchased within the 30-month period
preceding the date of the termination of the dealership; or
                   (B)  listed in the supplier's current sales manual
on the date of termination.
             (9)  "Outdoor power equipment" means machinery
operated by an engine or electric power and used in the landscaping
or cultivation of land for nonagricultural purposes. The term
includes lawn and garden implements.
             (10)  "Supplier" means:
                   (A)  a person engaged in the manufacture,
assembly, or wholesale distribution of equipment; or
                   (B)  the person's successor in interest,
including a purchaser of assets or stock and a surviving
corporation resulting from a merger, liquidation, or
reorganization. (Bus. & Com. Code, Secs. 19.01(2), (3), (4), (5),
(6), (7), (8), (9), (10), (11), (12).)
       Sec.55.002.SECURITY INTEREST. This chapter does not
affect a supplier's security interest in inventory.  (Bus. & Com.
Code, Sec. 19.03.)
       Sec.55.003.WAIVER OF CHAPTER. An attempted waiver of a
provision of this chapter is void.  (Bus. & Com. Code, Sec. 19.05.)
[Sections 55.004-55.050 reserved for expansion]
SUBCHAPTER B. PROVISIONS REGARDING DEALER AGREEMENT OR DEALERSHIP
       Sec.55.051.SUPPLEMENTARY AGREEMENT.  A supplier may not
coerce or compel a dealer to enter into a written or oral agreement
supplementing a dealer agreement with the supplier unless the
supplementary agreement is imposed on all other similarly situated
dealers in this state.  (Bus. & Com. Code, Sec. 19.21.)
       Sec.55.052.CHANGE IN COMPETITIVE CIRCUMSTANCES. A
supplier may not substantially change the competitive
circumstances of a dealer agreement without cause.  (Bus. & Com.
Code, Sec. 19.27.)
       Sec.55.053.INTEREST IN DEALERSHIP BY SALE OR TRANSFER.
(a)  A supplier may not prevent, by contract or otherwise, a dealer
or an officer, member, partner, or shareholder of a dealer from
selling or transferring a noncontrolling interest in the dealership
to another person.
       (b)  A supplier may prevent a person from selling or
transferring a controlling interest in a dealership without the
supplier's written consent. A supplier may not unreasonably
withhold the supplier's consent to a sale or transfer of a
controlling interest.  (Bus. & Com. Code, Secs. 19.26(a), (b).)
       Sec. 55.054.  TRANSFER OF CONTROLLING INTEREST IN DEALERSHIP
BY SUCCESSION. (a)  In this section, "family member" means an
individual related within the second degree by consanguinity or
affinity to an individual owning a controlling interest.
       (b)  A supplier and a dealer may provide by written agreement
for succession rights to a controlling interest in a dealership on
the death of an individual owning the controlling interest.
       (c)  If not otherwise determined by a written agreement
between the dealer and supplier, on the death of an individual
owning a controlling interest in a dealership, the family member to
whom the interest passes by will or intestate succession may
request that the supplier consent to a transfer of the ownership
interest to the family member.
       (d)  The supplier shall consent to a transfer described by
Subsection (c) if the family member meets the reasonable financial,
business experience, and character standards of the supplier.
Before the 91st day after the date the supplier receives the family
member's request, the supplier shall send a written response to the
family member that:
             (1)  grants the supplier's consent; or
             (2)  states the supplier's refusal to consent and the
specific reasons for the refusal.  (Bus. & Com. Code, Secs.
19.26(c), (d).)
       Sec.55.055.CONTINUATION OF AGREEMENT. Section 55.053 or
55.054 does not require a supplier to continue a dealer agreement if
the supplier determines that the dealer's area of responsibility or
trade area lacks sufficient sales potential to reasonably support
continuation of the agreement.  (Bus. & Com. Code, Sec. 19.26(e).)
       Sec.55.056.CAUSE REQUIRED FOR TERMINATION. A supplier
may not terminate, cancel, or fail to renew a dealer agreement
without cause.  (Bus. & Com. Code, Sec. 19.41.)
       Sec.55.057.RENOVATION OR ADDITIONAL SPACE.  A supplier
may not require as a condition of renewal or extension of a dealer
agreement that the dealer complete substantial renovation of the
dealer's place of business or acquire new or additional space to
serve as the dealer's place of business, unless the supplier gives
the dealer:
             (1)  one year's written notice of the requirement that
states all grounds for the requirement; and
             (2)  reasonable time to complete the renovation or
acquisition.  (Bus. & Com. Code, Sec. 19.42.)
[Sections 55.058-55.100 reserved for expansion]
SUBCHAPTER C. WARRANTIES
       Sec.55.101.APPLICABILITY OF SUBCHAPTER.  This subchapter
applies only to a warranty claim submitted by a dealer:
             (1)  while the dealer agreement is in effect; or
             (2)  after the termination of the dealer agreement, if
the claim is for work performed before the effective date of the
termination.  (Bus. & Com. Code, Sec. 19.28(a).)
       Sec.55.102.ACCEPTANCE OR REJECTION OF WARRANTY CLAIM.  
(a)  Not later than the 30th day after the date a supplier receives a
warranty claim from a dealer, the supplier shall accept or reject
the claim. A claim not rejected before that date is considered
accepted.
       (b)  Not later than the 30th day after the date a warranty
claim is accepted or rejected, the supplier shall:
             (1)  pay the accepted claim; or
             (2)  send the dealer written notice of the grounds for
rejecting the claim.
       (c)  A supplier, including a supplier of an electric engine
or motor, who pays a claim may not pay less than the hourly labor
rate and other expenses involved in the work that the dealer
regularly charges to a retail customer who does not assert a
warranty and the dealer's net price plus 15 percent for parts. The
number of hours of labor claimed may not exceed 1-1/2 times the
supplier's recommended hours for the work.  (Bus. & Com. Code, Secs.
19.28(b), (c), (d).)
       Sec.55.103.SUPPLIER'S RECOVERY OF WARRANTY CLAIM.  After
paying a warranty claim, a supplier may not charge back, set off, or
otherwise attempt to recover all or part of the amount of the claim
unless:
             (1)  the claim was fraudulent;
             (2)  the work for which the claim was made was not
properly performed or was unnecessary to comply with the warranty;
or
             (3)  the dealer did not substantiate the claim
according to the supplier's written requirements in effect when the
claim arose.  (Bus. & Com. Code, Sec. 19.28(e).)
       Sec.55.104.PURCHASER'S WARRANTY AGREEMENT.  A dealer or
supplier authorized to sell new farm, industrial, or outdoor power
equipment shall give the purchaser a written warranty agreement
including replacement or cash refund.  If the dealer determines the
equipment cannot be made usable, the manufacturer is liable to the
purchaser for the replacement or cash refund.  (Bus. & Com. Code,
Sec. 19.28(f).)
[Sections 55.105-55.150 reserved for expansion]
SUBCHAPTER D. DELIVERY, SALE, AND RETURN OF EQUIPMENT
       Sec. 55.151.  COERCED ORDERS, DELIVERIES, OR REFUSALS TO
PURCHASE PROHIBITED. A supplier may not coerce or compel a dealer
to:
             (1)  order or accept delivery of equipment with a
special feature or accessory not included in the base list price of
the equipment as publicly advertised by the supplier unless the
special feature or accessory is a safety feature or accessory
required by the supplier or by applicable law; or
             (2)  refuse to purchase equipment manufactured by
another manufacturer.  (Bus. & Com. Code, Sec. 19.22.)
       Sec.55.152.DISCRIMINATION AMONG DEALERS.  (a)  A supplier
may not discriminate among dealers in the supplier's delivery, in
reasonable quantities and within a reasonable time after receipt of
a dealer's order, of equipment covered by the dealer agreement and
specifically represented by the supplier as available for immediate
delivery.
       (b)  Subsection (a) does not apply if the discrimination is
because of:
             (1)  the supplier's restrictions on extending credit to
the dealer;
             (2)  the dealer's default under a dealership agreement;
or
             (3)  an act of God, work stoppage or delay because of a
strike or labor difficulty, bona fide shortage of materials,
freight embargo, or other cause over which the supplier has no
control.  (Bus. & Com. Code, Sec. 19.23.)
       Sec. 55.153.  LATE DELIVERY OF BACK-ORDERED SEASONAL DEMAND
ITEM.  (a)  Unless the supplier notifies a dealer of the status of a
back-ordered item before shipment of the item to the dealer, a
dealer may reject the delivery of an item of equipment other than a
repair part or attachment from a supplier if:
             (1)  the item has special value in a particular time of
year because of predictable seasonal demand and is less marketable
and less valuable after the seasonal demand period ends;
             (2)  the item was back-ordered and delivery is made
after the seasonal demand period ends; and
             (3)  the dealer sends written notice of the rejection
to the supplier before the 11th day after the delivery of the item.
       (b)  The supplier shall pay the costs of the return of an item
the delivery of which is rejected under Subsection (a).
       (c)  A supplier may not coerce or compel a dealer to accept
late delivery of back-ordered seasonal demand equipment other than
repair parts or attachments.  (Bus. & Com. Code, Sec. 19.24.)
       Sec.55.154.SALES TO AFFILIATED DEALER.  (a)  In this
section, "affiliated dealer" means a dealer in which a supplier has
an ownership interest.
       (b)  Except as provided by Subsection (c), a supplier may
not:
             (1)  sell or offer to sell new or unused equipment to an
affiliated dealer at a price lower than the price for a sale of the
same equipment, identically equipped, to a nonaffiliated dealer; or
             (2)  use a sales promotion plan or other program or
device that results in a sale or offer of sale of new or unused
equipment to an affiliated dealer at an actual price that is:
                   (A)  lower than the price for a nonaffiliated
dealer; or
                   (B)  fixed and predetermined solely by the
supplier.
       (c)  This section does not apply to sales made to a dealer for
resale to:
             (1)  a unit, agency, or political subdivision of the
United States or this state;
             (2)  a major fleet account; or
             (3)  an organization for testing or demonstrating the
equipment.  (Bus. & Com. Code, Secs. 19.01(1), 19.25.)
       Sec.55.155.RETURN OF INVENTORY; RESPONSIBILITY FOR COSTS.  
(a)  If on termination of a dealer agreement the dealer delivers to
the supplier or a person designated by the supplier inventory
purchased from the supplier and held by the dealer on the date of
the termination, the supplier shall pay to the dealer:
             (1)  the dealer cost of new, unsold, undamaged, and
complete equipment, other than repair parts, returned by the
dealer; and
             (2)  an amount equal to:
                   (A)  85 percent of the current price of new,
undamaged repair parts returned by the dealer, if the supplier
handles, packs, and loads the parts; or
                   (B)  90 percent of the current price of new,
undamaged repair parts returned by the dealer, if the supplier does
not handle, pack, or load the parts.
       (b)  Before returning inventory under this section and not
later than the 120th day after the effective date of termination,
the dealer shall submit to the supplier a list of the inventory the
dealer intends to return, including, to the extent possible, each
item's trade name, description, and serial number. Not later than
the 60th day after the date the supplier receives the list, the
supplier shall notify the dealer in writing of:
             (1)  each item that the supplier claims is not subject
to reimbursement under this section; and
             (2)  the destination for each item the dealer is to
deliver to a person designated by the supplier.
       (c)  The supplier may subtract from the amount owed under
Subsection (a) the amount of debt owed by the dealer to the
supplier.
       (d)  The supplier and dealer are each responsible for
one-half of the cost of delivering the inventory to the supplier or
a person designated by the supplier, except that if the dealer
delivers an item to a person designated by the supplier the dealer
is not responsible for the amount that exceeds the amount for which
the dealer would have been responsible if the item had been
delivered to the supplier.
       (e)  The supplier shall pay the amount owed under this
section:
             (1)  before the 91st day after the date the supplier or
person designated by the supplier receives inventory from the
dealer; and
             (2)  after the dealer has furnished proof that the
inventory was purchased from the supplier.
       (f)  On payment of the amount owed under this section, title
to the inventory is transferred to the supplier or person
designated by the supplier.
       (g)  A supplier and dealer may by agreement alter the time
limits provided by this section.  (Bus. & Com. Code, Sec. 19.43.)
       Sec. 55.156.  RETURN OF DATA PROCESSING OR PERIPHERAL
EQUIPMENT, SOFTWARE, OR CERTAIN TOOLS; RESPONSIBILITY FOR COSTS.  
(a)  If on termination of a dealer agreement the dealer delivers to
the supplier data processing or peripheral equipment, software, or
specialized repair tools that the supplier required the dealer to
purchase or lease, the supplier shall:
             (1)  assume any responsibilities of the dealer under
the lease for that equipment or software; and
             (2)  pay the dealer:
                   (A)  an amount equal to the fair market value of
the data processing or peripheral equipment or software purchased
by the dealer and delivered to the supplier; and
                   (B)  an amount equal to 75 percent of the cost to
the dealer of the specialized repair tools purchased by the dealer
and delivered to the supplier.
       (b)  The supplier and dealer are each responsible for
one-half of the cost of delivering the data processing or
peripheral equipment, software, or specialized repair tools to the
supplier.
       (c)  The supplier shall assume the responsibilities under
the lease and pay the amount required by this section before the
61st day after the date the supplier receives the data processing or
peripheral equipment, software, or specialized repair tools.
       (d)  On payment of the amount required by this section, title
or the right of possession to the data processing or peripheral
equipment or specialized repair tools purchased or leased by the
dealer is transferred to the supplier.  (Bus. & Com. Code, Sec.
19.44.)
       Sec.55.157.SUPPLIER'S LIABILITY FOR LATE PAYMENT. A
supplier who does not make a payment required by Section 55.155 or
55.156 before the 61st day after the date the supplier receives the
final shipment of the inventory, data processing or peripheral
equipment, software, or specialized repair tools from the dealer is
liable to the dealer for:
             (1)  the greater of the dealer cost or current price of
any inventory;
             (2)  any cost to the dealer of the data processing or
peripheral equipment, software, or specialized repair tools;
             (3)  any expense incurred by the dealer in returning
the inventory, data processing or peripheral equipment, software,
or specialized repair tools to the supplier;
             (4)  interest on any amounts owed under Subdivision
(1), (2), or (3), at the rate applicable to a judgment of a court of
this state, beginning on the 61st day after the date the supplier
received the inventory, data processing or peripheral equipment,
software, or specialized repair tools;
             (5)  reasonable attorney's fees; and
             (6)  court costs.  (Bus. & Com. Code, Sec. 19.47.)
       Sec. 55.158.  EXCEPTIONS TO SUPPLIER'S REPURCHASE,
PURCHASE, OR ASSUMPTION RESPONSIBILITY.  (a)  A supplier is not
required to repurchase:
             (1)  inventory:
                   (A)  that the dealer orders after the dealer
receives notice of the termination of the dealer agreement from the
supplier; or
                   (B)  for which the dealer cannot furnish evidence
of clear title that is satisfactory to the supplier; or
             (2)  a repair part that:
                   (A)  has a limited storage life and was purchased
from the supplier more than two years before the date of termination
of the dealer agreement;
                   (B)  is in a broken or damaged package;
                   (C)  is usually sold as part of a set, if the part
is separated from the set; or
                   (D)  cannot be sold without reconditioning or
repackaging.
       (b)  A supplier is not required to purchase or assume the
responsibilities under the lease for:
             (1)  data processing or peripheral equipment or
software that the dealer purchased that was not specifically
required by the supplier; or
             (2)  a specialized repair tool that:
                   (A)  is not unique to the supplier's product line;
                   (B)  is not in complete and salable condition; or
                   (C)  was not purchased by the dealer within the
three-year period preceding the date of termination of the dealer
agreement.  (Bus. & Com. Code, Sec. 19.45.)
[Sections 55.159-55.200 reserved for expansion]
SUBCHAPTER E. ENFORCEMENT
       Sec.55.201.ACTION FOR VIOLATION OF CHAPTER.  A person
injured by a violation of this chapter may bring an action for:
             (1)  an injunction to prevent further violation;
             (2)  damages;
             (3)  reasonable attorney's fees; and
             (4)  costs.  (Bus. & Com. Code, Sec. 19.02.)
TITLE 5.  REGULATION OF BUSINESSES AND SERVICES
CHAPTER 71.  ASSUMED BUSINESS OR PROFESSIONAL NAME
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 71.001.  SHORT TITLE 
Sec. 71.002.  DEFINITIONS 
Sec. 71.003.  APPLICABILITY OF CHAPTER 
[Sections 71.004-71.050 reserved for expansion]
SUBCHAPTER B. REQUIREMENTS APPLICABLE TO CERTAIN UNINCORPORATED
PERSONS
Sec. 71.051.  CERTIFICATE FOR CERTAIN UNINCORPORATED
               PERSONS 
Sec. 71.052.  CONTENTS OF CERTIFICATE 
Sec. 71.053.  EXECUTION OF CERTIFICATE 
Sec. 71.054.  PLACE OF FILING 
[Sections 71.055-71.100 reserved for expansion]
SUBCHAPTER C. REQUIREMENTS APPLICABLE TO INCORPORATED BUSINESS OR
PROFESSION AND CERTAIN OTHER ENTITIES
Sec. 71.101.  CERTIFICATE FOR INCORPORATED BUSINESS OR
               PROFESSION, LIMITED PARTNERSHIP,
               REGISTERED LIMITED LIABILITY
               PARTNERSHIP, OR LIMITED LIABILITY
               COMPANY 
Sec. 71.102.  CONTENTS OF CERTIFICATE 
Sec. 71.103.  PLACE OF FILING 
Sec. 71.104.  EXECUTION OF CERTIFICATE 
[Sections 71.105-71.150 reserved for expansion]
SUBCHAPTER D. GENERAL PROVISIONS REGARDING ASSUMED NAME
CERTIFICATE
Sec. 71.151.  DURATION AND RENEWAL OF CERTIFICATE 
Sec. 71.152.  MATERIAL CHANGE IN INFORMATION; NEW
               CERTIFICATE 
Sec. 71.153.  ABANDONMENT OF USE OF BUSINESS OR
               PROFESSIONAL NAME 
Sec. 71.154.  INDEX OF CERTIFICATES 
Sec. 71.155.  FILING FEES 
Sec. 71.156.  PRESCRIBED FORMS 
Sec. 71.157.  EFFECT OF FILING 
Sec. 71.158.  FILING OF REPRODUCTION 
[Sections 71.159-71.200 reserved for expansion]
SUBCHAPTER E. PENALTIES
Sec. 71.201.  CIVIL ACTION; SANCTION 
Sec. 71.202.  CRIMINAL PENALTY: GENERAL VIOLATION 
Sec. 71.203.  CRIMINAL PENALTY: FRAUDULENT FILING 
CHAPTER 71.  ASSUMED BUSINESS OR PROFESSIONAL NAME
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.71.001.SHORT TITLE. This chapter may be cited as the
Assumed Business or Professional Name Act. (Bus. & Com. Code, Sec.
36.01.)
       Sec.71.002.DEFINITIONS. In this chapter:
             (1)  "Address" means:
                   (A)  a post office address; and
                   (B)  a street address, if the street address is
not the same as the post office address.
             (2)  "Assumed name" means:
                   (A)  for an individual, a name that does not
include the surname of the individual;
                   (B)  for a partnership, a name that does not
include the surname or other legal name of each joint venturer or
general partner;
                   (C)  for an individual or a partnership, a name,
including a surname, that suggests the existence of additional
owners by including words such as "Company," "& Company," "& Son,"
"& Sons," "& Associates," "Brothers," and similar words, but not
words that merely describe the business being conducted or the
professional service being rendered;
                   (D)  for a limited partnership, a name other than
the name stated in its certificate of formation;
                   (E)  for a company, a name used by the company;
                   (F)  for a corporation, a name other than the name
stated in its certificate of formation or a comparable document;
                   (G)  for a registered limited liability
partnership, a name other than the name stated in its application
filed with the office of the secretary of state or a comparable
document; and
                   (H)  for a limited liability company, a name other
than the name stated in its certificate of formation or a comparable
document.
             (3)  "Certificate" means an assumed name certificate.
             (4)  "Company" means a real estate investment trust, a
joint-stock company, or any other business, professional, or other
association or legal entity that is not incorporated, other than a
partnership, limited partnership, limited liability company, or
registered limited liability partnership.
             (5)  "Corporation" means:
                   (A)  a domestic or foreign corporation,
professional corporation, professional association, or other
corporation; or
                   (B)  any other business, professional, or other
association or legal entity that is incorporated.
             (6)  "Estate" means a person's property that is
administered by a representative.
             (7)  "Office" means:
                   (A)  for a person that is not an individual or that
is a corporation that is not required to or does not maintain a
registered office in this state, the person's:
                         (i)  principal office; and
                         (ii)  principal place of business if not the
same as the person's principal office; and
                   (B)  for a corporation, limited partnership,
registered limited liability partnership, or limited liability
company that is required to maintain a registered office in this
state, the entity's:
                         (i)  registered office; and
                         (ii)  principal office if not the same as the
entity's registered office.
             (8)  "Partnership" means a joint venture or general
partnership other than a limited partnership or a registered
limited liability partnership.
             (9)  "Person" includes an individual, partnership,
limited partnership, limited liability company, registered limited
liability partnership, company, or corporation.
             (10)  "Registrant" means a person who has filed, or on
whose behalf there has been filed, a certificate under this chapter
or other law.
             (11)  "Representative" means a trustee, administrator,
executor, independent executor, guardian, conservator, trustee in
bankruptcy, receiver, or other person appointed by a court or by
trust or will to have custody of, take possession of, have title to,
or otherwise be empowered to control the person or property of any
person. (Bus. & Com. Code, Sec. 36.02; New.)
       Sec.71.003.APPLICABILITY OF CHAPTER. (a) This chapter
does not apply to an insurer authorized to engage in business in
this state and described in Subchapter A, Chapter 805, Insurance
Code, except as specifically provided by the Insurance Code.
       (b)  This chapter does not require a corporation, limited
partnership, registered limited liability partnership, or limited
liability company or its shareholders, associates, partners, or
members to file a certificate to conduct business or render a
professional service in this state under the name of the entity as
stated in the certificate of formation, application filed with the
office of the secretary of state, or other comparable document of
the entity. (Bus. & Com. Code, Secs. 36.03, 36.11(c).)
[Sections 71.004-71.050 reserved for expansion]
SUBCHAPTER B. REQUIREMENTS APPLICABLE TO CERTAIN UNINCORPORATED
PERSONS
       Sec. 71.051.  CERTIFICATE FOR CERTAIN UNINCORPORATED
PERSONS. A person must file a certificate under this subchapter if
the person regularly conducts business or renders a professional
service in this state under an assumed name other than as a
corporation, limited partnership, registered limited liability
partnership, or limited liability company.  (Bus. & Com. Code, Sec.
36.10(a) (part).)
       Sec.71.052.CONTENTS OF CERTIFICATE.  The certificate must
state:
             (1)  the assumed name under which the business is or is
to be conducted or the professional service is or is to be rendered;
             (2)  if the registrant is:
                   (A)  an individual, the individual's full name and
residence address;
                   (B)  a partnership:
                         (i)  the venture or partnership name;
                         (ii)  the venture or partnership office
address;
                         (iii)  the full name of each joint venturer
or general partner; and
                         (iv)  each joint venturer's or general
partner's residence address if the venturer or partner is an
individual or the joint venturer's or general partner's office
address if the venturer or partner is not an individual;
                   (C)  an estate:
                         (i)  the name of the estate;
                         (ii)  the estate's office address, if any;
                         (iii)  the full name of each representative
of the estate; and
                         (iv)  each representative's residence
address if the representative is an individual or the
representative's office address if the representative is not an
individual;
                   (D)  a real estate investment trust:
                         (i)  the name of the trust;
                         (ii)  the address of the trust;
                         (iii)  the full name of each trustee
manager; and
                         (iv)  each trustee manager's residence
address if the trustee manager is an individual or the trustee
manager's office address if the trustee manager is not an
individual; or
                   (E)  a company, other than a real estate
investment trust, or a corporation:
                         (i)  the name of the company or corporation;
                         (ii)  the state, country, or other
jurisdiction under the laws of which the company or corporation was
organized or incorporated; and
                         (iii)  the company's or corporation's office
address;
             (3)  the period, not to exceed 10 years, during which
the registrant will use the assumed name; and
             (4)  a statement specifying that the business that is
or will be conducted or the professional service that is or will be
rendered in the county under the assumed name is being or will be
conducted or rendered as a proprietorship, sole practitioner,
partnership, real estate investment trust, joint-stock company, or
other form of unincorporated business or professional association
or entity other than a limited partnership, limited liability
company, or registered limited liability partnership. (Bus. & Com.
Code, Sec. 36.10(a) (part).)
       Sec.71.053.EXECUTION OF CERTIFICATE. (a) The
certificate must be executed and acknowledged:
             (1)  by each individual whose name is required to be
stated in the certificate or the individual's representative or
attorney-in-fact; and
             (2)  under oath on behalf of each person whose name is
required to be stated in the certificate and who is not an
individual, by:
                   (A)  the person's representative or
attorney-in-fact; or
                   (B)  a joint venturer, general partner, trustee
manager, officer, or other person having authority regarding the
person comparable to the person's representative or
attorney-in-fact.
       (b)  A certificate executed and acknowledged by an
attorney-in-fact must include a statement that the attorney has
been authorized in writing by the attorney's principal to execute
and acknowledge the certificate. (Bus. & Com. Code, Sec.
36.10(b).)
       Sec.71.054.PLACE OF FILING. A person shall file the
certificate in the office of the county clerk in each county in
which the person:
             (1)  has or will maintain business or professional
premises; or
             (2)  conducts business or renders a professional
service, if the person does not or will not maintain business or
professional premises in any county.  (Bus. & Com. Code, Sec.
36.10(a) (part).)
[Sections 71.055-71.100 reserved for expansion]
SUBCHAPTER C. REQUIREMENTS APPLICABLE TO INCORPORATED BUSINESS OR
PROFESSION AND CERTAIN OTHER ENTITIES
       Sec. 71.101.  CERTIFICATE FOR INCORPORATED BUSINESS OR
PROFESSION, LIMITED PARTNERSHIP, REGISTERED LIMITED LIABILITY
PARTNERSHIP, OR LIMITED LIABILITY COMPANY. A corporation, limited
partnership, registered limited liability partnership, or limited
liability company must file a certificate under this subchapter if
the entity:
             (1)  regularly conducts business or renders
professional services in this state under an assumed name; or
             (2)  is required by law to use an assumed name in this
state to conduct business or render professional services.  (Bus. &
Com. Code, Sec. 36.11(a) (part).)
       Sec.71.102.CONTENTS OF CERTIFICATE. The certificate must
state:
             (1)  the assumed name under which the business is or is
to be conducted or the professional service is or is to be rendered;
             (2)  the registrant's name as stated in the
registrant's certificate of formation or application filed with the
office of the secretary of state or other comparable document;
             (3)  the state, country, or other jurisdiction under
the laws of which the registrant was incorporated or organized and
the registrant's registered or similar office address in that
state, country, or jurisdiction;
             (4)  the period, not to exceed 10 years, during which
the registrant will use the assumed name;
             (5)  a statement specifying that the registrant is:
                   (A)  a business corporation, nonprofit
corporation, professional corporation, professional association,
or other type of corporation;
                   (B)  a limited partnership, registered limited
liability partnership, or limited liability company; or
                   (C)  another type of incorporated business,
professional or other association, or legal entity;
             (6)  the address of:
                   (A)  the registrant's:
                         (i)  registered office in this state and the
name of its registered agent at that address; and
                         (ii)  principal office, if the principal
office address is not the same as the registrant's registered
office address in this state; or
                   (B)  if the registrant is not required to or does
not maintain a registered office in this state:
                         (i)  the registrant's office in this state;
and
                         (ii)  the registrant's place of business in
this state and any office of the registrant outside this state, if
the registrant is not incorporated or organized under the laws of
this state; and
             (7)  the county or counties in this state where the
registrant is or will be conducting business or rendering
professional services under the assumed name.  (Bus. & Com. Code,
Sec. 36.11(a) (part).)
       Sec.71.103.PLACE OF FILING. (a) The corporation, limited
partnership, registered limited liability partnership, or limited
liability company shall file the certificate in the office of the
secretary of state and in the office or offices of each county clerk
as specified by Subsection (b) or (c).
       (b)  Except as provided by Subsection (c), the entity shall
file the certificate in the offices of the county clerk of the
county in which the entity's:
             (1)  registered office is located; and
             (2)  principal office is located if the principal
office is in this state and not in the same county where the
registered office is located.
       (c)  If the entity is not required to or does not maintain a
registered office in this state, the entity shall file the
certificate:
             (1)  in the office of the county clerk of the county in
which the entity's office in this state is located; or
             (2)  in the office of the county clerk of the county in
which the entity's principal place of business in this state is
located, if:
                   (A)  the entity is not incorporated or organized
under the laws of this state; and
                   (B)  the county in which the entity's principal
place of business in this state is located is not the same county
where the entity's office is located.  (Bus. & Com. Code, Sec.
36.11(a) (part).)
       Sec.71.104.EXECUTION OF CERTIFICATE. (a) A certificate
filed in the secretary of state's office must be executed by an
officer, general partner, member, manager, or representative of or
attorney-in-fact for the registrant.
       (b)  A certificate filed in a county clerk's office must be
executed and acknowledged in the manner provided by Section 71.053
for a certificate filed under that section.
       (c)  A certificate executed by an attorney-in-fact must
include a statement that the attorney has been authorized in
writing by the attorney's principal to execute the certificate.  
(Bus. & Com. Code, Sec. 36.11(b).)
[Sections 71.105-71.150 reserved for expansion]
SUBCHAPTER D. GENERAL PROVISIONS REGARDING ASSUMED NAME
CERTIFICATE
       Sec.71.151.DURATION AND RENEWAL OF CERTIFICATE.  (a)  A
certificate is effective for a term not to exceed 10 years from the
date the certificate is filed.
       (b)  A certificate is void at the end of the certificate's
stated term, unless within six months preceding the certificate's
expiration date the registrant files in the office of a county clerk
and the secretary of state, if applicable, a renewal certificate
complying with the requirements of this chapter for an original
certificate.
       (c)  A registrant may renew a certificate under this section
for any number of successive terms, but each term may not exceed 10
years. (Bus. & Com. Code, Sec. 36.13.)
       Sec. 71.152.  MATERIAL CHANGE IN INFORMATION; NEW
CERTIFICATE.  (a) Not later than the 60th day after an event occurs
that causes the information in a certificate to become materially
misleading, a registrant must file a new certificate complying with
this chapter in the office in which the original or renewal
certificate was filed.
       (b)  An event that causes the information in a certificate to
become materially misleading includes:
             (1)  a change in the name, identity, entity, form of
business or professional organization, or location of a registrant;
             (2)  for a proprietorship or sole practitioner, a
change in ownership;
             (3)  for a partnership:
                   (A)  the admission of a new partner or joint
venturer; or
                   (B)  the end of a general partner's or joint
venturer's association with the partnership; or
             (4)  for a registrant required by law to maintain a
registered office or similar office and a registered agent or
similar agent at that office, a change in the address of the office
or in the identity of the agent.
       (c)  A new certificate filed under this section is effective
for a term not to exceed 10 years from the date the certificate is
filed.  (Bus. & Com. Code, Sec. 36.12.)
       Sec. 71.153.  ABANDONMENT OF USE OF BUSINESS OR PROFESSIONAL
NAME.  (a)  A registrant who has filed a certificate under this
chapter and who ceases to conduct business or render professional
services in this state under the assumed name stated in the
certificate may file a statement of abandonment of use of the
assumed name in the office in which the registrant's certificate
was filed.
       (b)  The statement of abandonment of use of an assumed name
must state:
             (1)  the assumed name being abandoned;
             (2)  the date on which the certificate was filed in the
office in which the statement of abandonment is being filed and in
any other office in which the certificate was filed; and
             (3)  the registrant's name and residence or office
address as required for a certificate filed under this chapter.
       (c)  A statement of abandonment must be executed and
acknowledged in the same manner as if the registrant were filing a
certificate under this chapter.  (Bus. & Com. Code, Sec. 36.14.)
       Sec.71.154.INDEX OF CERTIFICATES.  (a) The secretary of
state and each county clerk shall keep an alphabetical index of:
             (1)  all assumed names that have been filed in the
office of the respective officer; and
             (2)  the persons filing the certificates.
       (b)  A copy of a certificate or statement is presumptive
evidence in any court in this state of the facts contained in the
copy if the copy is certified to by:
             (1)  the county clerk in whose office the certificate
or statement was filed; or
             (2)  the secretary of state. (Bus. & Com. Code, Sec.
36.15 (part).)
       Sec.71.155.FILING FEES. (a) The county clerk shall
collect a fee of:
             (1)  $2 for filing each certificate or statement
required or permitted to be filed under this chapter; and
             (2)  50 cents for each name to be indexed.
       (b)  The secretary of state shall collect for the use of this
state a fee of:
             (1)  $25 for indexing and filing each certificate or
statement required or permitted to be filed under this chapter; and
             (2)  $10 for filing each statement of abandonment of
use of an assumed name. (Bus. & Com. Code, Sec. 36.15 (part).)
       Sec.71.156.PRESCRIBED FORMS. (a) The secretary of state
may prescribe a form to be used for filing a certificate or
statement that complies with this chapter in the secretary's office
or in the office of any county clerk in this state.
       (b)  Unless otherwise specifically provided by law, the use
of a form prescribed under this section is not mandatory. (Bus. &
Com. Code, Sec. 36.16.)
       Sec.71.157.EFFECT OF FILING. (a) This chapter does not
give a registrant a right to use the assumed name in violation of
the common or statutory law of unfair competition or unfair trade
practices, common law copyright, or similar law.
       (b)  The filing of a certificate under this chapter does not
in itself constitute actual use of the assumed name stated in the
certificate for purposes of determining priority of rights.  (Bus. &
Com. Code, Sec. 36.17.)
       Sec.71.158.FILING OF REPRODUCTION. (a) The secretary of
state may accept for filing a photographic, photostatic, or similar
reproduction of a signed original document required or authorized
to be filed in the secretary's office under this chapter.
       (b)  A signature on a document required or authorized to be
filed in the secretary of state's office under this chapter may be a
facsimile. (Bus. & Com. Code, Sec. 36.18.)
[Sections 71.159-71.200 reserved for expansion]
SUBCHAPTER E. PENALTIES
       Sec.71.201.CIVIL ACTION; SANCTION. (a) A person's
failure to comply with this chapter does not impair the validity of
any contract or act by the person or prevent the person from
defending any action or proceeding in any court of this state, but
the person may not maintain in a court of this state an action or
proceeding arising out of a contract or act in which an assumed name
was used until an original, new, or renewed certificate has been
filed as required by this chapter.
       (b)  In an action or proceeding brought against a person who
has not complied with this chapter, the court may award the
plaintiff or other party bringing the action or proceeding expenses
incurred, including attorney's fees, in locating and effecting
service of process on the defendant.  (Bus. & Com. Code, Sec.
36.25.)
       Sec.71.202.CRIMINAL PENALTY: GENERAL VIOLATION.  (a)  A
person commits an offense if the person:
             (1)  conducts business or renders a professional
service in this state under an assumed name; and
             (2)  intentionally violates this chapter.
       (b)  An offense under this section is a Class A misdemeanor.
(Bus. & Com. Code, Sec. 36.26.)
       Sec.71.203.CRIMINAL PENALTY: FRAUDULENT FILING.  (a)  A
person may not knowingly or intentionally sign and present for
filing or cause to be presented for filing a document authorized or
required to be filed under this chapter that:
             (1)  indicates that the person signing the document has
the authority to act on behalf of the entity for which the document
is presented and the person does not have that authority;
             (2)  contains a material false statement; or
             (3)  is forged.
       (b)  A person commits an offense if the person violates
Subsection (a).  An offense under this subsection is punishable as
if it were an offense under Section 37.10, Penal Code.  (Bus. & Com. Code, Sec. 36.27.)
CHAPTER 72. BUSINESS RECORDS
SUBCHAPTER A. DISPOSAL OF CERTAIN BUSINESS RECORDS
Sec. 72.001.  DEFINITIONS
Sec. 72.002.  DESTRUCTION OF CERTAIN BUSINESS RECORDS
Sec. 72.003.  RETENTION OF REPRODUCTION OF BUSINESS
               RECORDS
Sec. 72.004.  DISPOSAL OF BUSINESS RECORDS CONTAINING
               PERSONAL IDENTIFYING INFORMATION
[Sections 72.005-72.050 reserved for expansion]
SUBCHAPTER B. DELETION OF CERTAIN RECORDS OR INFORMATION RELATING
TO CUSTOMERS' CHECKS
Sec. 72.051.  REQUIRED DELETION OF CERTAIN ELECTRONIC
               RECORDS
CHAPTER 72. BUSINESS RECORDS
SUBCHAPTER A. DISPOSAL OF CERTAIN BUSINESS RECORDS
       Sec.72.001.DEFINITIONS. In this subchapter:
             (1)  "Business record" means letters, words, sounds, or
numbers, or the equivalent of letters, words, sounds, or numbers,
recorded in the operation of a business by:
                   (A)  handwriting;
                   (B)  typewriting;
                   (C)  printing;
                   (D)  photostat;
                   (E)  photograph;
                   (F)  magnetic impulse;
                   (G)  mechanical or electronic recording;
                   (H)  digitized optical image; or
                   (I)  another form of data compilation.
             (2)  "Personal identifying information" means an
individual's first name or initial and last name in combination
with one or more of the following:
                   (A)  date of birth;
                   (B)  social security number or other
government-issued identification number;
                   (C)  mother's maiden name;
                   (D)  unique biometric data, including the
individual's fingerprint, voice data, or retina or iris image;
                   (E)  unique electronic identification number,
address, or routing code;
                   (F)  telecommunication access device as defined
by Section 32.51, Penal Code, including debit or credit card
information; or
                   (G)  financial institution account number or any
other financial information.
             (3)  "Reproduction" means a counterpart of an original
business record produced by:
                   (A)  production from the same impression or the
same matrix as the original;
                   (B)  photography, including an enlargement or
miniature;
                   (C)  mechanical or electronic rerecording;
                   (D)  chemical reproduction;
                   (E)  digitized optical imaging; or
                   (F)  another technique that accurately reproduces
the original. (Bus. & Com. Code, Sec. 35.48(a).)
       Sec.72.002.DESTRUCTION OF CERTAIN BUSINESS RECORDS. (a)
A business record required to be retained by a law of this state may
be destroyed at any time after the third anniversary of the date the
business record was created.
       (b)  Subsection (a) does not apply if a law or rule
applicable to the business record prescribes a different retention
period or procedure for disposal. (Bus. & Com. Code, Sec.
35.48(b).)
       Sec.72.003.RETENTION OF REPRODUCTION OF BUSINESS RECORDS.
A law of this state that requires retention of a business record is
satisfied by retention of a reproduction of the original record.
(Bus. & Com. Code, Sec. 35.48(c).)
       Sec. 72.004.  DISPOSAL OF BUSINESS RECORDS CONTAINING
PERSONAL IDENTIFYING INFORMATION. (a) This section does not apply
to:
             (1)  a financial institution as defined by 15 U.S.C.
Section 6809; or
             (2)  a covered entity as defined by Section 601.001 or
602.001, Insurance Code.
       (b)  When a business disposes of a business record that
contains personal identifying information of a customer of the
business, the business shall modify, by shredding, erasing, or
other means, the personal identifying information so as to make the
information unreadable or undecipherable.
       (c)  A business is considered to comply with Subsection (b)
if the business contracts with a person engaged in the business of
disposing of records for the modification of personal identifying
information on behalf of the business in accordance with that
subsection.
       (d)  A business that disposes of a business record without
complying with Subsection (b) is liable for a civil penalty in an
amount not to exceed $500 for each business record. The attorney
general may bring an action against the business to:
             (1)  recover the civil penalty;
             (2)  obtain any other remedy, including injunctive
relief; and
             (3)  recover costs and reasonable attorney's fees
incurred in bringing the action.
       (e)  A business that in good faith modifies a business record
as required by Subsection (b) is not liable for a civil penalty
under Subsection (d) if the business record is reconstructed,
wholly or partly, through extraordinary means.
       (f)  Subsection (b) does not require a business to modify a
business record if:
             (1)  the business is required to retain the business
record under another law; or
             (2)  the business record is historically significant
and:
                   (A)  there is no potential for identity theft or
fraud while the business retains custody of the business record; or
                   (B)  the business record is transferred to a
professionally managed historical repository. (Bus. & Com. Code,
Secs. 35.48(d), (e), (f), (g), (h), (i).)
[Sections 72.005-72.050 reserved for expansion]
SUBCHAPTER B. DELETION OF CERTAIN RECORDS OR INFORMATION RELATING
TO CUSTOMERS' CHECKS
       Sec. 72.051.  REQUIRED DELETION OF CERTAIN ELECTRONIC
RECORDS. (a) In this section, "law enforcement agency" has the
meaning assigned by Article 59.01, Code of Criminal Procedure.
       (b)  This section applies only to a business that accepts
checks from customers in the ordinary course of business. This
section does not apply to a financial institution as defined by 31
U.S.C. Section 5312(a)(2), as amended.
       (c)  A business shall delete any electronic record
indicating that a customer has issued a dishonored check or any
other information except for a checking account number or bank
routing transit number on which the business bases a refusal to
accept a check from a customer. The record must be deleted not
later than the 30th day after the date:
             (1)  the customer and the business agree that the
information contained in the electronic record is incorrect; or
             (2)  the customer presents to the business:
                   (A)  a copy of a report filed by the customer with
a law enforcement agency stating that the dishonored check was
unauthorized; and
                   (B)  a written statement of the customer
indicating that the dishonored check was unauthorized.
       (d)  A business that violates Subsection (c) is liable to
this state for a civil penalty in an amount not to exceed $1,000.
The attorney general may:
             (1)  bring an action to recover the civil penalty; and
             (2)  recover reasonable expenses incurred in
recovering the penalty, including court costs, reasonable
attorney's fees, investigative costs, witness fees, and deposition
expenses. (Bus. & Com. Code, Sec. 35.62.)
[Chapters 73-90 reserved for expansion]
CHAPTER 91. PRIVATE PASSENGER VEHICLE RENTAL COMPANIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 91.001.  DEFINITIONS
[Sections 91.002-91.050 reserved for expansion]
SUBCHAPTER B. DAMAGE WAIVERS AND MANDATORY CHARGES
Sec. 91.051.  WRITTEN AGREEMENT REQUIRED FOR DAMAGE
               WAIVER
Sec. 91.052.  NOTICE TO RENTER
Sec. 91.053.  POSTED NOTICE
Sec. 91.054.  PROHIBITED REPRESENTATIONS AND COERCION
Sec. 91.055.  MANDATORY CHARGE
Sec. 91.056.  VOIDING OF DAMAGE WAIVER
[Sections 91.057-91.100 reserved for expansion]
SUBCHAPTER C. ENFORCEMENT PROVISIONS
Sec. 91.101.  CIVIL PENALTY
Sec. 91.102.  INJUNCTION
Sec. 91.103.  SUIT FOR CIVIL PENALTY OR INJUNCTIVE
               RELIEF
CHAPTER 91. PRIVATE PASSENGER VEHICLE RENTAL COMPANIES
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.91.001.DEFINITIONS. In this chapter:
             (1)  "Authorized driver" means:
                   (A)  the renter;
                   (B)  a person whom the rental company expressly
designates on the rental agreement as an authorized driver;
                   (C)  the renter's spouse if the spouse:
                         (i)  holds a driver's license; and
                         (ii)  satisfies any minimum age requirement
established by the rental company;
                   (D)  an employer, employee, or coworker of the
renter if the person:
                         (i)  holds a driver's license;
                         (ii)  satisfies any minimum age requirement
established by the rental company; and
                         (iii)  is engaged in a business activity
with the renter at the time of the rental; or
                   (E)  a person who:
                         (i)  holds a driver's license; and
                         (ii)  is driving directly to a medical or
police facility under circumstances reasonably believed to
constitute an emergency.
             (2)  "Damage" means damage to or loss of a rented
vehicle, regardless of fault involved in the damage or loss. The
term includes:
                   (A)  theft and loss of use; and
                   (B)  any cost incident to the damage or loss,
including storage, impound, towing, and administrative charges.
             (3)  "Damage waiver" means a rental company's agreement
not to hold an authorized driver liable for all or part of any
damage to a rented vehicle.
             (4)  "Mandatory charge" means a charge for an item or
service provided in connection with a rental transaction, other
than a charge imposed by law:
                   (A)  that is in addition to the base rental rate;
and
                   (B)  that the renter may not avoid or decline.
             (5)  "Private passenger vehicle" means a motor vehicle
of the private passenger type, including a passenger van, primarily
intended for private use.
             (6)  "Rental agreement" means an agreement for 30 days
or less that states the terms governing the use of a private
passenger vehicle rented by a rental company.
             (7)  "Rental company" means a person in the business of
renting private passenger vehicles to the public for 30 days or
less. The term does not include a person who holds a license under
Chapter 2301, Occupations Code, and whose primary business activity
is not renting private passenger vehicles.
             (8)  "Renter" means a person who obtains use of a
private passenger vehicle from a rental company under a rental
agreement. (V.A.C.S. Art. 9026c, Secs. 1, 4(a).)
[Sections 91.002-91.050 reserved for expansion]
SUBCHAPTER B. DAMAGE WAIVERS AND MANDATORY CHARGES
       Sec.91.051.WRITTEN AGREEMENT REQUIRED FOR DAMAGE WAIVER.
A rental company may not sell a damage waiver unless the renter
agrees to the damage waiver in writing at or before the time the
rental agreement is executed. (V.A.C.S. Art. 9026c, Sec. 2(a).)
       Sec.91.052.NOTICE TO RENTER. (a) A rental company shall
provide each renter who purchases a damage waiver, the charge for
which is not included in the base rental rate, the following notice:
       NOTICE:  Your rental agreement offers, for an
additional charge, an optional waiver to cover all or a
part of your responsibility for damage to or loss of
the vehicle. Before deciding whether to purchase the
waiver, you may wish to determine whether your own
automobile insurance or credit card agreement provides
you coverage for rental vehicle damage or loss and
determine the amount of the deductible under your own
insurance coverage. The purchase of the waiver is not
mandatory. The waiver is not insurance.
       (b)  The notice under Subsection (a) must be in at least
10-point type. (V.A.C.S. Art. 9026c, Sec. 3(a).)
       Sec.91.053.POSTED NOTICE. In addition to providing the
notice required by Section 91.052, a rental company shall post in a
conspicuous location where the damage waiver is offered the
following notice:
Notice to Texas Residents Regarding Damage Waivers
       Your personal automobile insurance policy may or may
not provide coverage for your responsibility for the
loss of or damage to a rented vehicle during the rental
term. Before deciding whether to purchase a damage
waiver, you may wish to determine whether your
automobile insurance policy provides you coverage for
rental vehicle damage or loss. If you file a claim
under your personal automobile insurance policy, your
insurance company may choose to nonrenew your policy
at your renewal date, but may do so only if you are at
fault for the claim.
(V.A.C.S. Art. 9026c, Sec. 3(b).)
       Sec.91.054.PROHIBITED REPRESENTATIONS AND COERCION.  (a)  
An employee or agent of a rental company may not:
             (1)  make an oral or written representation that
contradicts this chapter; or
             (2)  use coercive language or a coercive act in an
attempt to persuade a renter to purchase a damage waiver.
       (b)  For purposes of this section, if the renter has declined
the damage waiver, a further statement or question by the employee
or agent that refers to the damage waiver, other than a statement
made in conjunction with review of the rental agreement that the
waiver has been declined, is considered coercive.  (V.A.C.S. Art.
9026c, Sec. 5.)
       Sec.91.055.MANDATORY CHARGE. (a)  A rental company that
includes a mandatory charge in a rental agreement shall prominently
display and fully disclose the charge:
             (1)  separately on the face of the agreement; and
             (2)  in all of the rental company's price advertising,
price quotes, price offers, and price displays, including displays
in computerized reservation systems.
       (b)  A rental company may not impose or require the purchase
of a damage waiver as a mandatory charge.  (V.A.C.S. Art. 9026c,
Secs. 4(b), (c).)
       Sec.91.056.VOIDING OF DAMAGE WAIVER. A rental company may
not void a damage waiver unless:
             (1)  an authorized driver causes the damage
intentionally or by wilful and wanton misconduct;
             (2)  the damage arises out of use of the vehicle:
                   (A)  by a person:
                         (i)  who is not an authorized driver;
                         (ii)  while under the influence of an
intoxicant that impairs driving ability, including alcohol, an
illegal drug, or a controlled substance; or
                         (iii)  while engaged in commission of a
crime other than a traffic infraction;
                   (B)  to carry persons or property for hire;
                   (C)  to push or tow anything;
                   (D)  for driver's training;
                   (E)  to engage in a speed contest; or
                   (F)  outside the continental United States,
unless the rental agreement specifically authorizes the use; or
             (3)  the rental company entered into the rental
transaction based on fraudulent information supplied by the renter.
(V.A.C.S. Art. 9026c, Sec. 2(b).)
[Sections 91.057-91.100 reserved for expansion]
SUBCHAPTER C. ENFORCEMENT PROVISIONS
       Sec.91.101.CIVIL PENALTY. A rental company that violates
this chapter is liable for a civil penalty in an amount of not less
than $500 or more than $1,000 for each act of violation.  (V.A.C.S.
Art. 9026c, Sec. 6(a).)
       Sec.91.102.INJUNCTION. A person injured or threatened
with injury by a violation of this chapter may seek injunctive
relief against the person committing or threatening to commit the
violation. (V.A.C.S. Art. 9026c, Sec. 6(c).)
       Sec.91.103.SUIT FOR CIVIL PENALTY OR INJUNCTIVE RELIEF.
The attorney general or a county or district attorney may bring an
action in the name of the state for a civil penalty under Section
91.101, injunctive relief under Section 91.102, or both. (V.A.C.S. Art. 9026c, Sec. 6(b).)
CHAPTER 92. RENTAL-PURCHASE AGREEMENTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 92.001.  DEFINITIONS
Sec. 92.002.  ADVERTISEMENT REQUIREMENTS
[Sections 92.003-92.050 reserved for expansion]
SUBCHAPTER B. FORM AND CONTENT OF AGREEMENTS
Sec. 92.051.  FORM OF AGREEMENT
Sec. 92.052.  REQUIRED DISCLOSURES
Sec. 92.053.  OTHER REQUIRED PROVISIONS
Sec. 92.054.  PROHIBITED PROVISIONS
Sec. 92.055.  RESTRICTIONS ON LATE CHARGES AND
               REINSTATEMENT FEES
[Sections 92.056-92.100 reserved for expansion]
SUBCHAPTER C. REPOSSESSION AND REINSTATEMENT
Sec. 92.101.  MERCHANT'S REPOSSESSION RIGHT
Sec. 92.102.  EFFECT OF REPOSSESSION DURING
               REINSTATEMENT PERIOD
Sec. 92.103.  EFFECT ON REINSTATEMENT PERIOD OF
               MERCHANDISE RETURN
Sec. 92.104.  MERCHANT'S DUTIES ON REINSTATEMENT
[Sections 92.105-92.150 reserved for expansion]
SUBCHAPTER D. LOSS DAMAGE WAIVERS
Sec. 92.151.  CONTRACT FOR WAIVER
Sec. 92.152.  CHARGE FOR WAIVER
Sec. 92.153.  RESTRICTIONS ON MERCHANT CONCERNING
               WAIVER
Sec. 92.154.  REQUIRED NOTICE IN WAIVER
Sec. 92.155.  STATEMENT OF TOTAL CHARGE
Sec. 92.156.  AUTHORIZED EXCLUSIONS
Sec. 92.157.  RELATIONSHIP TO INSURANCE
Sec. 92.158.  RULES FOR REVIEW OF CERTAIN CONTRACTS
Sec. 92.159.  FEES
Sec. 92.160.  ADMINISTRATIVE ENFORCEMENT OF SUBCHAPTER
[Sections 92.161-92.200 reserved for expansion]
SUBCHAPTER E. CIVIL ENFORCEMENT
Sec. 92.201.  ACTION FOR VIOLATION OF CHAPTER
Sec. 92.202.  DECEPTIVE TRADE PRACTICE
CHAPTER 92. RENTAL-PURCHASE AGREEMENTS
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.92.001.DEFINITIONS. In this chapter:
             (1)  "Advertisement" means a commercial message in any
medium that directly or indirectly promotes or assists a
rental-purchase agreement.
             (2)  "Commission" means the Texas Commission of
Licensing and Regulation.
             (3)  "Consumer" means an individual who leases personal
property under a rental-purchase agreement.
             (4)  "Department" means the Texas Department of
Licensing and Regulation.
             (5)  "Loss damage waiver" means a merchant's agreement
to not hold a consumer liable for loss from all or part of any damage
to merchandise.
             (6)  "Merchandise" means the personal property that is
the subject of a rental-purchase agreement.
             (7)  "Merchant" means a person who, in the ordinary
course of business, regularly leases, offers to lease, or arranges
for the leasing of merchandise under a rental-purchase agreement.  
The term includes a person who is assigned an interest in a
rental-purchase agreement.
             (8)  "Rental-purchase agreement" means an agreement
under which a consumer may use merchandise for personal, family, or
household purposes for an initial period of four months or less, and
that:
                   (A)  is automatically renewable with each payment
after the initial period; and
                   (B)  permits the consumer to become the owner of
the merchandise. (Bus. & Com. Code, Secs. 35.71(1), (3), (3-a),
(4), (5), (6), 35.722(a).)
       Sec.92.002.ADVERTISEMENT REQUIREMENTS. An advertisement
for a rental-purchase agreement that refers to or states the amount
of a payment or the right to acquire ownership of any one particular
item under the agreement must clearly and conspicuously state:
             (1)  that the transaction advertised is a
rental-purchase agreement;
             (2)  the total amount and number of payments necessary
to acquire ownership; and
             (3)  that the consumer does not acquire ownership
rights unless the merchandise is rented for a specified number of
payment periods. (Bus. & Com. Code, Sec. 35.73.)
[Sections 92.003-92.050 reserved for expansion]
SUBCHAPTER B. FORM AND CONTENT OF AGREEMENTS
       Sec.92.051.FORM OF AGREEMENT. (a)  A rental-purchase
agreement must be written in:
             (1)  plain English; and
             (2)  any other language used by the merchant in an
advertisement related to the agreement.
       (b)  A numerical amount included in a rental-purchase
agreement must be stated in figures.
       (c)  A disclosure required by this chapter must be printed or
typed in each rental-purchase agreement in a size equal to at least
10-point boldfaced type.
       (d)  The attorney general shall provide a form agreement that
may be used to satisfy the requirements of a rental-purchase
agreement under this chapter.  (Bus. & Com. Code, Secs. 35.72(a),
(b).)
       Sec.92.052.REQUIRED DISCLOSURES. (a)  A rental-purchase
agreement must disclose:
             (1)  whether the merchandise is new or used;
             (2)  the price for which the merchant would have sold
the merchandise to the consumer for cash on the date of the
agreement;
             (3)  the amount and timing of payments;
             (4)  the total number of payments necessary and the
total amount to be paid to acquire ownership of the merchandise;
             (5)  that the consumer does not acquire ownership
rights unless the consumer complies with the ownership terms of the
agreement;
             (6)  the amount and purpose of any payment, charge, or
fee in addition to the regular periodic payments; and
             (7)  whether the consumer is liable for loss or damage
to the merchandise and, if so, the maximum amount for which the
consumer may be liable.
       (b)  Notice of the right to reinstate the agreement must be
disclosed in the agreement. (Bus. & Com. Code, Secs. 35.71(2),
35.72(f) (part), (g).)
       Sec.92.053.OTHER REQUIRED PROVISIONS. A rental-purchase
agreement must provide that:
             (1)  any charge in addition to periodic payments must
be reasonably related to the service performed; and
             (2)  a consumer who fails to make a timely payment may
reinstate an agreement, without losing any right or option
previously acquired, by taking the required action before the later
of:
                   (A)  one week after the due date of the payment; or
                   (B)  the number of days after the due date of the
payment that is equal to half the number of days in a regular
payment period. (Bus. & Com. Code, Sec. 35.72(e).)
       Sec.92.054.PROHIBITEDPROVISIONS. (a)  A rental-purchase
agreement may not:
             (1)  require a consumer to:
                   (A)  pay a late charge or reinstatement fee except
as provided by Section 92.055(b);
                   (B)  make a payment at the end of the scheduled
rental-purchase term in excess of or in addition to a regular
periodic payment to acquire ownership of the merchandise; or
                   (C)  purchase insurance or a loss damage waiver
from the merchant to cover the merchandise;
             (2)  require a confession of judgment;
             (3)  authorize a merchant or an agent of the merchant to
commit a breach of the peace in repossessing merchandise; or
             (4)  waive a defense, counterclaim, or right the
consumer may have against the merchant or an agent of the merchant.
       (b)  A consumer may not in any event be required to pay a sum
greater than the total amount to be paid to acquire ownership of the
merchandise as disclosed under Section 92.052(a)(4).  (Bus. & Com.
Code, Sec. 35.72(c) (part).)
       Sec. 92.055.  RESTRICTIONS ON LATE CHARGES AND REINSTATEMENT
FEES. (a)  Only one late charge or reinstatement fee may be
collected on a payment regardless of the period during which the
payment remains in default.
       (b)  A rental-purchase agreement may require the consumer to
pay a late charge or reinstatement fee only if:
             (1)  a periodic payment is delinquent for more than:
                   (A)  seven days, if the payment is due monthly; or
                   (B)  three days, if the payment is due more
frequently than monthly; and
             (2)  the charge or fee is in an amount not less than $5
and not more than the lesser of:
                   (A)  $10; or
                   (B)  10 percent of the delinquent payment. (Bus. &
Com. Code, Secs. 35.72(c) (part), (d).)
[Sections 92.056-92.100 reserved for expansion]
SUBCHAPTER C. REPOSSESSION AND REINSTATEMENT
       Sec.92.101.MERCHANT'S REPOSSESSION RIGHT. This chapter
does not prevent a merchant from attempting repossession of
merchandise during the reinstatement period. (Bus. & Com. Code,
Sec. 35.72(f) (part).)
       Sec. 92.102.  EFFECT OF REPOSSESSION DURING REINSTATEMENT
PERIOD. A consumer's right to reinstate a rental-purchase
agreement is not affected by the merchant's repossession of the
merchandise during the reinstatement period. (Bus. & Com. Code,
Sec. 35.72(f) (part).)
       Sec. 92.103.  EFFECT ON REINSTATEMENT PERIOD OF MERCHANDISE
RETURN. If merchandise is returned during the applicable
reinstatement period, other than through judicial process, the
right to reinstate the rental-purchase agreement is extended for a
period of not less than 30 days after the date of return. (Bus. &
Com. Code, Sec. 35.72(f) (part).)
       Sec.92.104.MERCHANT'S DUTIES ON REINSTATEMENT. (a) On
reinstatement, the merchant shall provide the consumer with:
             (1)  the same merchandise; or
             (2)  substitute merchandise of comparable quality and
condition.
       (b)  A merchant who provides the consumer with substitute
merchandise shall also provide the consumer with the disclosures
required by Section 92.052(a). (Bus. & Com. Code, Sec. 35.72(f)
(part).)
[Sections 92.105-92.150 reserved for expansion]
SUBCHAPTER D. LOSS DAMAGE WAIVERS
       Sec.92.151.CONTRACT FOR WAIVER. In addition to other
charges permitted by this chapter, a consumer may contract for a
loss damage waiver.  (Bus. & Com. Code, Sec. 35.721(a) (part).)
       Sec.92.152.CHARGE FOR WAIVER. A merchant may charge a
periodic fee for a loss damage waiver in an amount not to exceed 10
percent of the periodic rental payment. (Bus. & Com. Code, Sec.
35.721(e).)
       Sec.92.153.RESTRICTIONS ON MERCHANT CONCERNING WAIVER. A
merchant may not:
             (1)  sell a loss damage waiver unless:
                   (A)  the department has approved the form of the
contract containing the waiver; and
                   (B)  the consumer agrees to the waiver in writing;
or
             (2)  impose or require the purchase of a loss damage
waiver as a mandatory charge. (Bus. & Com. Code, Secs. 35.721(b),
(g).)
       Sec.92.154.REQUIRED NOTICE IN WAIVER. A contract that
offers a loss damage waiver must include the following notice:
       "This contract offers an optional loss damage waiver for an
additional charge to cover your responsibility for loss of or
damage to the merchandise. You do not have to purchase this
coverage. Before deciding whether or not to purchase this
loss damage waiver, you may consider whether your homeowners'
or casualty insurance policy affords you coverage for loss of
or damage to rental merchandise and the amount of the
deductible you would pay under your policy."
(Bus. & Com. Code, Sec. 35.721(f).)
       Sec.92.155.STATEMENT OF TOTAL CHARGE.  A loss damage
waiver agreement must include a statement of the total charge for
the loss damage waiver.  (Bus. & Com. Code, Sec. 35.721(d).)
       Sec.92.156.AUTHORIZED EXCLUSIONS. A loss damage waiver
may exclude:
             (1)  loss or damage to the merchandise that is caused by
an unexplained disappearance or abandonment of the merchandise;
             (2)  damage that is intentionally caused by the
consumer; or
             (3)  damage that results from the consumer's wilful or
wanton misconduct. (Bus. & Com. Code, Sec. 35.721(c).)
       Sec.92.157.RELATIONSHIP TO INSURANCE. A loss damage
waiver is not insurance. (Bus. & Com. Code, Sec. 35.721(a) (part).)
       Sec.92.158.RULES FOR REVIEW OF CERTAIN CONTRACTS. The
commission by rule shall provide the method for annually submitting
to the department for review any contract, including any amendment
to a contract, that contains a loss damage waiver.  (Bus. & Com.
Code, Sec. 35.721(h) (part).)
       Sec.92.159.FEES.  The commission by rule shall set a
reasonable fee to be paid by a merchant for:
             (1)  the review of a contract form under Section
92.158; and
             (2)  the administration of this chapter by the
department.  (Bus. & Com. Code, Sec. 35.721(h) (part).)
       Sec.92.160.ADMINISTRATIVE ENFORCEMENT OF SUBCHAPTER. (a)  
The department shall enforce this subchapter and, as necessary, may
investigate a merchant who has one or more contracts that include a
loss damage waiver.
       (b)  A person may file a complaint with the department
alleging a violation of this subchapter. The department shall
investigate the alleged violation on receipt of the complaint and
may inspect any record relevant to the complaint.
       (c)  If, as a result of an investigation, the department
determines that a violation may have occurred, the commission shall
provide an opportunity for a hearing in the manner provided for a
contested case under Chapter 2001, Government Code.
       (d)  If, after opportunity for hearing, the commission
determines that the merchant has violated this subchapter, the
commission may:
             (1)  impose an administrative penalty under Chapter 51,
Occupations Code; or
             (2)  award the complainant damages in an amount not to
exceed the amount of the contract price for the merchandise. (Bus. &
Com. Code, Secs. 35.722(b), (c), (d), (e).)
[Sections 92.161-92.200 reserved for expansion]
SUBCHAPTER E. CIVIL ENFORCEMENT
       Sec.92.201.ACTION FOR VIOLATION OF CHAPTER. (a)  A
consumer damaged by a merchant's violation of this chapter is
entitled to recover from the merchant:
             (1)  actual damages;
             (2)  an amount equal to 25 percent of the total amount
of payments required to obtain ownership of the merchandise, except
that the amount recovered under this subdivision may not be less
than $250 or more than $1,000; and
             (3)  reasonable attorney's fees and court costs.
       (b)  A merchant is not liable under this section for a
violation of this chapter caused by the merchant's error if,
subject to Subsection (c), the merchant:
             (1)  provides the consumer written notice of the error;
and
             (2)  makes adjustments in the consumer's account as
necessary to ensure:
                   (A)  the consumer will not be required to pay an
amount in excess of the amount disclosed; and
                   (B)  the agreement otherwise complies with this
chapter.
       (c)  A merchant must take action under Subsection (b) before:
             (1)  the 31st day after the date the merchant discovers
the error; and
             (2)  the merchant receives written notice of the error
from the consumer or an action under this section is filed. (Bus. &
Com. Code, Secs. 35.74(a), (b).)
       Sec.92.202.DECEPTIVE TRADE PRACTICE. A violation of this
chapter is a deceptive trade practice under Subchapter E, Chapter
17. (Bus. & Com. Code, Sec. 35.74(c).)
[Chapters 93-100 reserved for expansion]
CHAPTER 101.  INTERNATIONAL MATCHMAKING ORGANIZATIONS
Sec. 101.001.  DEFINITIONS
Sec. 101.002.  PROVIDING CRIMINAL HISTORY, MARITAL
                HISTORY, AND BASIC RIGHTS INFORMATION
Sec. 101.003.  PROVIDING ADDITIONAL CRIMINAL HISTORY,
                MARITAL HISTORY, AND BASIC RIGHTS
                INFORMATION
Sec. 101.004.  OBTAINING CRIMINAL HISTORY RECORD
                INFORMATION AND MARITAL HISTORY
                INFORMATION
Sec. 101.005.  CIVIL PENALTY
CHAPTER 101.  INTERNATIONAL MATCHMAKING ORGANIZATIONS
       Sec.101.001.DEFINITIONS. In this chapter:
             (1)  "Basic rights information" means information
applicable to a noncitizen, including information about human
rights, immigration, and emergency assistance and resources.
             (2)  "Client" means a person who is a resident of the
United States and who contracts with an international matchmaking
organization to meet recruits.
             (3)  "Criminal history record information" means
criminal history record information obtained from the Department of
Public Safety under Subchapter F, Chapter 411, Government Code, and
from the Federal Bureau of Investigation under Section 411.087,
Government Code.
             (4)  "International matchmaking organization" means a
corporation, partnership, sole proprietorship, or other legal
entity that does business in the United States and offers to
residents of this state dating, matrimonial, or social referral
services involving recruits by:
                   (A)  exchanging names, telephone numbers,
addresses, or statistics;
                   (B)  selecting photographs; or
                   (C)  providing a social environment for
introducing clients to recruits in a country other than the United
States.
             (5)  "Marital history information" means a declaration
of a person's current marital status, the number of times the person
has been married, and whether any marriage occurred as a result of
receiving services from an international matchmaking organization.
             (6)  "Recruit" means a person who:
                   (A)  is not a citizen or resident of the United
States; and
                   (B)  is recruited by an international matchmaking
organization for the purpose of providing dating, matrimonial, or
social referral services. (Bus. & Com. Code, Sec. 35.121.)
       Sec. 101.002.  PROVIDING CRIMINAL HISTORY, MARITAL HISTORY,
AND BASIC RIGHTS INFORMATION. (a)  An international matchmaking
organization shall provide each recruit with the criminal history
record information and marital history information of the
organization's clients and with basic rights information.
       (b)  The information under Subsection (a) must:
             (1)  be in the recruit's native language; and
             (2)  be displayed in a manner that:
                   (A)  separates the criminal history record
information, the marital history information, and the basic rights
information from any other information; and
                   (B)  is highly noticeable.  (Bus. & Com. Code,
Sec. 35.122.)
       Sec. 101.003.  PROVIDING ADDITIONAL CRIMINAL HISTORY,
MARITAL HISTORY, AND BASIC RIGHTS INFORMATION. (a)  An
international matchmaking organization shall disseminate to a
recruit the criminal history record information and marital history
information of a client and the basic rights information not later
than the 30th day after the date the organization receives the
criminal history record information and the marital history
information from the client.
       (b)  The international matchmaking organization shall
provide the information to the recruit in the recruit's native
language. The organization shall pay the costs incurred to
translate the information.  (Bus. & Com. Code, Sec. 35.123.)
       Sec. 101.004.  OBTAINING CRIMINAL HISTORY RECORD
INFORMATION AND MARITAL HISTORY INFORMATION. (a)  A client shall:
             (1)  obtain a copy of the client's own criminal history
record information;
             (2)  provide the criminal history record information to
the international matchmaking organization; and
             (3)  provide the client's own marital history
information to the international matchmaking organization.
       (b)  The international matchmaking organization shall
require the client to affirm that the marital history information
is complete and accurate and includes information regarding
marriages, annulments, and dissolutions that occurred in another
state or a foreign country.
       (c)  The international matchmaking organization may not
provide any further services to the client or the recruit until the
organization has:
             (1)  obtained the requested criminal history record
information and marital history information; and
             (2)  provided the information to the recruit.  (Bus. &
Com. Code, Sec. 35.124.)
       Sec.101.005.CIVIL PENALTY. (a)  An international
matchmaking organization that violates this chapter is subject to a
civil penalty not to exceed $20,000 for each violation.
       (b)  In determining the amount of the civil penalty, the
court shall consider:
             (1)  any previous violations of this chapter by the
international matchmaking organization;
             (2)  the seriousness of the violation, including the
nature, circumstances, extent, and gravity of the violation;
             (3)  the demonstrated good faith of the international
matchmaking organization; and
             (4)  the amount necessary to deter future violations.
       (c)  The attorney general or the appropriate district or
county attorney may bring an action under this section in the name
of the state in a district court in:
             (1)  Travis County; or
             (2)  a county in which any part of the violation occurs.
       (d)  A penalty collected under this section by the attorney
general or a district or county attorney shall be deposited in the
state treasury to the credit of the compensation to victims of crime
fund under Article 56.54, Code of Criminal Procedure.  (Bus. & Com. Code, Sec. 35.125.)
CHAPTER 102. SEXUALLY ORIENTED BUSINESSES
Sec. 102.001.  DEFINITIONS
Sec. 102.002.  PROHIBITION ON CERTAIN ACTIVITIES BY SEX
                OFFENDER IN RELATION TO BUSINESS
Sec. 102.003.  PROHIBITION ON CERTAIN ACTIVITIES BY
                BUSINESS IN RELATION TO SEX OFFENDER
Sec. 102.004.  INJUNCTION OR OTHER RELIEF
Sec. 102.005.  CRIMINAL PENALTIES
CHAPTER 102. SEXUALLY ORIENTED BUSINESSES
       Sec.102.001.DEFINITIONS. In this chapter:
             (1)  "Sex offender" means a person who has been
convicted of or placed on deferred adjudication for an offense for
which a person is subject to registration under Chapter 62, Code of
Criminal Procedure.
             (2)  "Sexually oriented business" has the meaning
assigned by Section 243.002, Local Government Code.  (Bus. & Com.
Code, Sec. 47.001.)
       Sec. 102.002.  PROHIBITION ON CERTAIN ACTIVITIES BY SEX
OFFENDER IN RELATION TO BUSINESS. A sex offender may not:
             (1)  wholly or partly own a sexually oriented business;
or
             (2)  serve as a director, officer, operator, manager,
or employee of a sexually oriented business.  (Bus. & Com. Code,
Sec. 47.002(a).)
       Sec. 102.003.  PROHIBITION ON CERTAIN ACTIVITIES BY BUSINESS
IN RELATION TO SEX OFFENDER. If a sexually oriented business knows
that a person is a sex offender, the business may not:
             (1)  contract with that person to operate or manage the
business as an independent contractor; or
             (2)  employ that person as an officer, operator,
manager, or other employee. (Bus. & Com. Code, Sec. 47.002(b).)
       Sec.102.004.INJUNCTION OR OTHER RELIEF. (a) The attorney
general or appropriate district or county attorney, in the name of
the state, may bring an action for an injunction or other process
against a person who violates or threatens to violate Section
102.002 or 102.003.
       (b)  The action may be brought in a district court in:
             (1)  Travis County; or
             (2)  a county in which any part of the violation or
threatened violation occurs.
       (c)  The court may grant any prohibitory or mandatory relief
warranted by the facts, including a temporary restraining order,
temporary injunction, or permanent injunction.  (Bus. & Com. Code,
Sec. 47.003.)
       Sec.102.005.CRIMINAL PENALTIES. (a)  A sex offender
commits an offense if the sex offender violates Section 102.002.
       (b)  A sexually oriented business commits an offense if the
business violates Section 102.003.
       (c)  An offense under this section is a Class A misdemeanor.  (Bus. & Com. Code, Sec. 47.004.)
CHAPTER 103.  APPRAISALS IMPROPERLY INDUCED BY MORTGAGE LENDERS
Sec. 103.001.  DEFINITIONS 
Sec. 103.002.  CRIMINAL PENALTY 
CHAPTER 103.  APPRAISALS IMPROPERLY INDUCED BY MORTGAGE LENDERS
       Sec.103.001.DEFINITIONS.  In this chapter:
             (1)  "Lender" means a person who lends money for or
invests money in mortgage loans.
             (2)  "Mortgage loan" means a loan secured by a deed of
trust, security deed, or other lien on real property.  (Bus. & Com.
Code, Sec. 35.56(a).)
       Sec.103.002.CRIMINAL PENALTY.  (a)  A lender commits an
offense if in connection with a mortgage loan transaction the
lender pays or offers to pay a person, including an individual
licensed or certified by the Texas Appraiser Licensing and
Certification Board or the Texas Real Estate Commission, a fee or
other consideration for appraisal services and the payment:
             (1)  is contingent on a minimum, maximum, or pre-agreed
estimate of value of property securing the loan; and
             (2)  interferes with the person's ability or obligation
to provide an independent and impartial opinion of the property's
value.
       (b)  An offense under this section is a Class A misdemeanor.
       (c)  An instruction a lender gives to a real estate appraiser
regarding a legal or other regulatory requirement for the appraisal
of property, or any other communication between a lender or real
estate appraiser necessary or appropriate under a law, regulation,
or underwriting standard applicable to a real estate appraisal,
does not constitute interference by a lender for purposes of Subsection (a)(2).  (Bus. & Com. Code, Secs. 35.56(b), (c), (d).)
CHAPTER 104. RESTRICTIONS ON CHARGES BY MOTOR FUEL FRANCHISORS
Sec. 104.001.  DEFINITIONS
Sec. 104.002.  PROHIBITED FEES, CHARGES, AND DISCOUNTS
Sec. 104.003.  CIVIL ACTION
CHAPTER 104. RESTRICTIONS ON CHARGES BY MOTOR FUEL FRANCHISORS
       Sec.104.001.DEFINITIONS. In this chapter:
             (1)  "Franchise":
                   (A)  includes:
                         (i)  a contract under which a distributor or
retailer is authorized to occupy marketing premises in connection
with the sale, consignment, or distribution of motor fuel under a
trademark owned or controlled by a franchisor-refiner or by a
refiner who supplies motor fuel to a distributor who authorizes the
occupancy;
                         (ii)  a contract relating to the supply of
motor fuel to be sold, consigned, or distributed under a trademark
owned or controlled by a refiner; and
                         (iii)  the unexpired portion of any
franchise transferred or assigned under the franchise provisions or
any applicable provision of state or federal law authorizing the
transfer or assignment regardless of the franchise provisions; and
                   (B)  does not include a contract:
                         (i)  that is made in the distribution of
motor fuels through a card-lock or key-operated pumping system; and
                         (ii)  to which a refiner or producer of the
motor fuel is not a party.
             (2)  "Franchisee" means a distributor or retailer who
is authorized under a franchise to use a trademark in connection
with the sale, consignment, or distribution of motor fuel.
             (3)  "Franchisor" means a refiner or distributor who
authorizes under a franchise the use of a trademark in connection
with the sale, consignment, or distribution of motor fuel.
             (4)  "Motor fuel" includes diesel fuel and gasoline:
                   (A)  delivered to a service station by a
franchisor; and
                   (B)  usable as a propellant of a motor vehicle.
(V.A.C.S. Art. 8612, Secs. 1(1), (2), (3), (5).)
       Sec.104.002.PROHIBITED FEES, CHARGES, AND DISCOUNTS. (a)  
For purposes of this section, wholesale price is computed by adding
to the invoice price or purchase price per gallon charged to a
franchisee who buys motor fuel any excise tax paid by the buyer and
any reasonable freight charges paid by the buyer, and subtracting
that portion of any refund, rebate, or subsidy not designed to
offset the fee, charge, or discount described by this section.
       (b)  Except as provided by Subsection (c), a franchisor may
not require a franchisee to pay to the franchisor a fee, charge, or
discount for:
             (1)  honoring a credit card issued by the franchisor;
or
             (2)  submitting to the franchisor, for payment or
credit to the franchisee's account, documents or other evidence of
indebtedness of the holder of a credit card issued by the
franchisor.
       (c)  A franchisor may require a franchisee to pay the fee,
charge, or discount if the franchisor, in consideration of
competitive prices in the relevant market, has adjusted the
wholesale prices charged or rebates credited to franchisees for
motor fuel by amounts that on average for franchisees in this state
substantially offset the fee, charge, or discount. (V.A.C.S. Art.
8612, Secs. 1(4), 2.)
       Sec.104.003.CIVIL ACTION. (a) A franchisee may bring a
civil action against a franchisor who violates Section 104.002,
without regard to the amount in controversy, in the district court
in any county in which the franchisor or franchisee transacts
business.  An action under this section must be commenced and
prosecuted not later than the second anniversary of the date the
cause of action accrues against the franchisor.
       (b)  The court shall award to a franchisee who prevails in an
action under this section:
             (1)  the amount of actual damages;
             (2)  equitable relief as determined by the court to be
necessary to remedy the effects of the franchisor's violation of
Section 104.002, including a declaratory judgment, permanent
injunctive relief, and temporary injunctive relief; and
             (3)  court costs and attorney's fees that are
reasonable in relation to the amount of work expended.
       (c)  In addition to the remedies provided under Subsection
(b), on finding that the defendant wilfully and knowingly committed
the violation, the trier of fact shall award not more than three
times the amount of actual damages.
       (d)  In an action under this section, the franchisor has the
burden of establishing the offset described by Section 104.002 as an affirmative defense. (V.A.C.S. Art. 8612, Sec. 3.)
CHAPTER 105.  REFUELING SERVICES FOR PERSONS WITH DISABILITIES
Sec. 105.001.  DEFINITIONS 
Sec. 105.002.  APPLICABILITY OF CHAPTER 
Sec. 105.003.  REFUELING SERVICES 
Sec. 105.004.  NOTICE 
Sec. 105.005.  OFFENSE; PENALTY 
Sec. 105.006.  ENFORCEMENT 
CHAPTER 105.  REFUELING SERVICES FOR PERSONS WITH DISABILITIES
       Sec.105.001.DEFINITIONS. (a) In this chapter:
             (1)  "Refueling service" means the service of pumping
motor vehicle fuel into the fuel tank of a motor vehicle.
             (2)  "Service station" means a gasoline service station
or other facility that offers gasoline or other motor vehicle fuel
for sale to the public from the facility.
       (b)  In this chapter, with respect to the operation of a
service station, "person" means an individual, firm, partnership,
association, trustee, or corporation. (V.A.C.S. Art. 8613, Sec. 1;
New.)
       Sec.105.002.APPLICABILITY OF CHAPTER. (a)  This chapter
applies to a service station that ordinarily provides pump island
service, except that such a service station is not required to
provide refueling service under this chapter during any regularly
scheduled hours during which, for security reasons, the service
station does not provide pump island service.
       (b)  This chapter does not apply to:
             (1)  a service station or other facility that:
                   (A)  never provides pump island service; and
                   (B)  has only remotely controlled pumps; or
             (2)  a refueling service used to provide liquefied gas,
as defined by Section 162.001, Tax Code.  (V.A.C.S. Art. 8613, Sec.
3.)
       Sec.105.003.REFUELING SERVICES. (a) A person who
operates a service station shall provide, on request, refueling
service to a person with a disability who is the driver of a vehicle
and displays:
             (1)  a license plate issued under Section 504.201 or
504.203, Transportation Code; or
             (2)  a disabled parking placard issued under Section
681.004, Transportation Code.
       (b)  The price charged for motor vehicle fuel provided under
Subsection (a) may not exceed the price the service station would
otherwise generally charge the public for the purchase of motor
vehicle fuel without refueling service. (V.A.C.S. Art. 8613, Sec.
2.)
       Sec.105.004.NOTICE. (a) The Department of Agriculture
shall provide a notice that states the provisions of this chapter to
each person who operates a service station.
       (b)  The Texas Department of Transportation shall provide a
notice that states the provisions of this chapter to each person
with a disability who is issued:
             (1)  license plates under Section 504.201,
Transportation Code; or
             (2)  a disabled parking placard under Section 681.004,
Transportation Code. (V.A.C.S. Art. 8613, Sec. 4.)
       Sec.105.005.OFFENSE; PENALTY. (a) A person commits an
offense if the person violates Section 105.003 and the person is:
             (1)  a manager responsible for setting the service
policy of a service station subject to this chapter; or
             (2)  an employee acting independently against the
established service policy of the service station.
       (b)  An offense under this section is a Class C misdemeanor.
(V.A.C.S. Art. 8613, Sec. 5.)
       Sec.105.006.ENFORCEMENT. In addition to enforcement by
the prosecuting attorney who represents the state, this chapter may
be enforced by the attorney general. (V.A.C.S. Art. 8613, Sec. 6.)
CHAPTER 201.  SALE OF ITEMS AT FLEA MARKETS
Sec. 201.001.  DEFINITION 
Sec. 201.002.  INAPPLICABILITY OF CHAPTER TO CERTAIN
                ITEMS 
Sec. 201.003.  SALE OF CERTAIN ITEMS PROHIBITED 
Sec. 201.004.  FRAUDULENT AUTHORIZATION FOR SALE OF
                CERTAIN ITEMS AT RETAIL 
Sec. 201.005.  PROVISION OF BOOTH OR SIMILAR SPACE NOT
                AN OFFENSE 
Sec. 201.006.  INVESTIGATION RECORDS REQUIRED 
CHAPTER 201.  SALE OF ITEMS AT FLEA MARKETS
       Sec.201.001.DEFINITION. In this chapter, "flea market"
means a location at which booths or similar spaces are rented or
otherwise made temporarily available to two or more persons and at
which the persons offer tangible personal property for sale. (Bus. &
Com. Code, Sec. 35.55(a).)
       Sec.201.002.INAPPLICABILITY OF CHAPTER TO CERTAIN ITEMS.
This chapter does not apply to the sale or offer for sale of a
nutritional supplement or vitamin. (Bus. & Com. Code, Sec.
35.55(h).)
       Sec.201.003.SALE OF CERTAIN ITEMS PROHIBITED. (a)  A
person commits an offense if the person sells or offers for sale at
a flea market:
             (1)  infant formula or baby food of a type usually
consumed by children younger than two years of age;
             (2)  a drug, as defined by Section 431.002, Health and
Safety Code; or
             (3)  contact lenses, including disposable contact
lenses.
       (b)  It is a defense to prosecution under this section that
the person selling the item:
             (1)  is authorized in writing to sell the item at retail
by the manufacturer of the item or the manufacturer's authorized
distributor and the authorization states the person's name; and
             (2)  provides the authorization for examination by any
person at the flea market who requests to see the authorization.
       (c)  It is a defense to prosecution under this section that
only a sample of the item or a catalog or brochure displaying the
item was available at the flea market and the item sold was not
delivered to the buyer at the flea market.
       (d)  An offense under this section is a misdemeanor
punishable by a fine not to exceed $100.
       (e)  The penalty provided by this section is in addition to
any other sanction provided by law.  (Bus. & Com. Code, Secs.
35.55(b), (d), (f).)
       Sec. 201.004.  FRAUDULENT AUTHORIZATION FOR SALE OF CERTAIN
ITEMS AT RETAIL. (a)  A person commits an offense if the person
provides to another person an authorization under Section
201.003(b) and:
             (1)  the authorization is forged or contains a false
statement; or
             (2)  the person displaying the authorization obtained
the authorization by fraud.
       (b)  An offense under this section is a misdemeanor
punishable by a fine not to exceed $100. (Bus. & Com. Code, Secs.
35.55(e), (f).)
       Sec. 201.005.  PROVISION OF BOOTH OR SIMILAR SPACE NOT AN
OFFENSE. A person does not commit an offense under this chapter
solely because the person provides booths or similar spaces at a
flea market.  (Bus. & Com. Code, Sec. 35.55(c).)
       Sec.201.006.INVESTIGATION RECORDS REQUIRED. A law
enforcement agency investigating a violation of this chapter shall
maintain a record of the investigation. The record is public information. (Bus. & Com. Code, Sec. 35.55(g).)
CHAPTER 202.  SALES OF MOTOR VEHICLES WITH STOPLAMP COVERINGS
Sec. 202.001.  SALE OF MOTOR VEHICLE WITH CERTAIN
                STOPLAMP COVERING PROHIBITED
CHAPTER 202.  SALES OF MOTOR VEHICLES WITH STOPLAMP COVERINGS
       Sec. 202.001.  SALE OF MOTOR VEHICLE WITH CERTAIN STOPLAMP
COVERING PROHIBITED. (a)  In this section, "motor vehicle" has the
meaning assigned by Section 541.201, Transportation Code.
       (b)  A person in the business of selling motor vehicles may
not sell a motor vehicle with a transparent or semitransparent
covering:
             (1)  placed over a stoplamp that is mounted on the rear
center line of the vehicle either in or on the rear window or within
six inches from the rear window of the vehicle for the purpose of
emitting light when the vehicle's brakes are applied; and
             (2)  on which is impressed or imprinted a name, trade
name, logotype, or other message that a person behind the vehicle
can read when the stoplamp is illuminated.
       (c)  A person who violates this section commits an offense.
An offense under this section is a Class C misdemeanor. (Bus. & Com. Code, Sec. 35.46.)
CHAPTER 203. EXPORTING ARTICLES WITHOUT INSPECTION
Sec. 203.001.  CRIMINAL PENALTY FOR EXPORTING ARTICLES
                WITHOUT REQUIRED INSPECTION
CHAPTER 203. EXPORTING ARTICLES WITHOUT INSPECTION
       Sec. 203.001.  CRIMINAL PENALTY FOR EXPORTING ARTICLES
WITHOUT REQUIRED INSPECTION. (a)  A person commits an offense if
the person:
             (1)  exports from this state, or ships for the purpose
of exportation to a state other than this state or to a foreign
port, an article of commerce that by law of this state is required
to be inspected by a public inspector; and
             (2)  does not have the article inspected as required by
law.
       (b)  An offense under this section is a misdemeanor
punishable by a fine not to exceed $100. (Bus. & Com. Code, Sec.
35.57.)
TITLE 7.  RECEIPTS, DOCUMENTS OF TITLE, AND OTHER INSTRUMENTS
CHAPTER 251. WAREHOUSE RECEIPTS
Sec. 251.001.  DEFINITIONS
Sec. 251.002.  WAREHOUSEMAN ISSUING FRAUDULENT WAREHOUSE
               RECEIPT
Sec. 251.003.  WAREHOUSEMAN FAILING TO STATE
               WAREHOUSEMAN'S OWNERSHIP OF GOODS ON
               RECEIPT
Sec. 251.004.  WAREHOUSEMAN ISSUING WAREHOUSE RECEIPT
               WITHOUT CONTROL OF GOODS
Sec. 251.005.  WAREHOUSEMAN ISSUING DUPLICATE OR
               ADDITIONAL WAREHOUSE RECEIPT
Sec. 251.006.  WAREHOUSEMAN WRONGFULLY DELIVERING GOODS
Sec. 251.007.  FAILURE TO DISCLOSE LACK OF OWNERSHIP OF
               GOODS
Sec. 251.008.  FAILURE TO DISCLOSE EXISTENCE OF LIEN ON
               GOODS
CHAPTER 251. WAREHOUSE RECEIPTS
       Sec.251.001.DEFINITIONS. In this chapter:
             (1)  "Goods" means all things treated as movable for
purposes of a contract of storage or transportation.
             (2)  "Issue" includes aiding in the issuance of a
warehouse receipt.
             (3)  "Warehouse receipt" means a receipt issued by a
warehouseman.
             (4)  "Warehouseman" means a person engaged in the
business of storing goods for hire.  The term includes an officer,
agent, or employee of a warehouseman.  (Bus. & Com. Code, Sec.
35.27; New.)
       Sec. 251.002.  WAREHOUSEMAN ISSUING FRAUDULENT WAREHOUSE
RECEIPT.  (a)  A warehouseman may not, with intent to defraud, issue
a warehouse receipt that contains a false statement.
       (b)  A warehouseman who violates this section commits an
offense.  An offense under this section is a misdemeanor punishable
by:
             (1)  confinement in the county jail for a term of not
more than one year;
             (2)  a fine not to exceed $1,000; or
             (3)  both the fine and confinement.  (Bus. & Com. Code,
Sec. 35.28.)
       Sec. 251.003.  WAREHOUSEMAN FAILING TO STATE WAREHOUSEMAN'S
OWNERSHIP OF GOODS ON RECEIPT.  (a)  A warehouseman may not
knowingly issue a negotiable warehouse receipt describing goods the
warehouseman owns, whether solely, jointly, or in common, and is
storing, unless the warehouseman states the warehouseman's
ownership of the goods on the receipt.
       (b)  A warehouseman who violates this section commits an
offense.  An offense under this section is a misdemeanor punishable
by:
             (1)  confinement in the county jail for a term of not
more than one year; or
             (2)  a fine not to exceed $1,000.  (Bus. & Com. Code,
Sec. 35.29.)
       Sec. 251.004.  WAREHOUSEMAN ISSUING WAREHOUSE RECEIPT
WITHOUT CONTROL OF GOODS.  (a)  A warehouseman may not issue a
warehouse receipt for goods if the warehouseman knows at the time of
issuance that the goods described in the receipt are not under the
warehouseman's control.
       (b)  A warehouseman who violates this section commits an
offense.  An offense under this section is a felony punishable by:
             (1)  imprisonment in the Texas Department of Criminal
Justice for a term of not more than five years;
             (2)  a fine not to exceed $5,000; or
             (3)  both the fine and imprisonment.  (Bus. & Com. Code,
Sec. 35.30.)
       Sec. 251.005.  WAREHOUSEMAN ISSUING DUPLICATE OR ADDITIONAL
WAREHOUSE RECEIPT.  (a)  A warehouseman may not issue a duplicate or
additional negotiable warehouse receipt for goods if the
warehouseman knows at the time of issuance that a previously issued
negotiable warehouse receipt describing the goods is outstanding
and uncanceled.
       (b)  This section does not apply if:
             (1)  the word "duplicate" is plainly placed on the
duplicate or additional negotiable warehouse receipt; or
             (2)  goods described in the outstanding and uncanceled
negotiable warehouse receipt were delivered under a court order on
proof that the receipt was lost or destroyed.
       (c)  A warehouseman who violates this section commits an
offense.  An offense under this section is a felony punishable by:
             (1)  imprisonment in the Texas Department of Criminal
Justice for a term of not more than five years;
             (2)  a fine not to exceed $5,000; or
             (3)  both the fine and imprisonment.  (Bus. & Com. Code,
Sec. 35.31.)
       Sec.251.006.WAREHOUSEMAN WRONGFULLY DELIVERING GOODS.  
(a)  A warehouseman may not knowingly deliver goods that are
described in a negotiable warehouse receipt and stored with the
warehouseman, unless the receipt is surrendered to the warehouseman
at or before the time the warehouseman delivers the goods.
       (b)  This section does not apply if the goods are:
             (1)  delivered under a court order on proof that the
negotiable warehouse receipt describing the goods was lost or
destroyed;
             (2)  lawfully sold to satisfy a warehouseman's lien; or
             (3)  disposed of because of the perishable or hazardous
nature of the goods.
       (c)  A warehouseman who violates this section commits an
offense.  An offense under this section is a misdemeanor punishable
by:
             (1)  confinement in the county jail for a term of not
more than one year;
             (2)  a fine not to exceed $1,000; or
             (3)  both the fine and confinement. (Bus. & Com. Code,
Sec. 35.32.)
       Sec. 251.007.  FAILURE TO DISCLOSE LACK OF OWNERSHIP OF
GOODS.  (a)  A person who obtains a negotiable warehouse receipt
describing goods the person does not own may not, with intent to
defraud, negotiate the receipt for value without disclosing the
person's lack of ownership.
       (b)  A person who violates this section commits an offense.  
An offense under this section is a misdemeanor punishable by:
             (1)  confinement in the county jail for a term of not
more than one year;
             (2)  a fine not to exceed $1,000; or
             (3)  both the fine and confinement.  (Bus. & Com. Code,
Sec. 35.33 (part).)
       Sec. 251.008.  FAILURE TO DISCLOSE EXISTENCE OF LIEN ON
GOODS.  (a)  A person who obtains a negotiable warehouse receipt
describing goods subject to a lien may not, with intent to defraud,
negotiate the receipt for value without disclosing the lien's
existence.
       (b)  A person who violates this section commits an offense.  
An offense under this section is a misdemeanor punishable by:
             (1)  confinement in the county jail for a term of not
more than one year;
             (2)  a fine not to exceed $1,000; or
             (3)  both the fine and confinement.  (Bus. & Com. Code,
Sec. 35.33 (part).)
CHAPTER 252.  BILLS OF LADING
Sec. 252.001.  DEFINITIONS
Sec. 252.002.  DUTIES OF RAILROAD COMMISSION
Sec. 252.003.  AGENT WRONGFULLY FAILING OR REFUSING TO
                ISSUE BILL OF LADING
Sec. 252.004.  AGENT ISSUING FRAUDULENT BILL OF LADING
Sec. 252.005.  AGENT ISSUING ORDER BILL OF LADING IN
                DUPLICATE OR SET OF PARTS
Sec. 252.006.  FRAUDULENTLY INDUCING ISSUANCE OF BILL
                OF LADING
Sec. 252.007.  FRAUDULENTLY NEGOTIATING OR TRANSFERRING
                BILL OF LADING
CHAPTER 252.  BILLS OF LADING
       Sec.252.001.DEFINITIONS.  In this chapter:
             (1)  "Agent" includes an officer, employee, or
receiver.
             (2)  "Bill of lading" means a document evidencing the
receipt of goods for shipment issued by a person engaged in the
business of transporting or forwarding goods.  The term includes an
air consignment note, air waybill, or other document for air
transportation comparable to a bill of lading for marine or rail
transportation.
             (3)  "Goods" means all things treated as movable for
purposes of a contract of storage or transportation.  (Bus. & Com.
Code, Sec. 35.14 (part).)
       Sec.252.002.DUTIES OF RAILROAD COMMISSION.  (a)  In this
section, "common carrier" does not include a pipeline company or
express company.
       (b)  The Railroad Commission of Texas shall:
             (1)  prescribe forms, terms, and conditions for
authenticating, certifying, or validating bills of lading issued by
a common carrier;
             (2)  regulate the manner by which a common carrier
issues bills of lading; and
             (3)  take other action necessary to carry out the
purposes of Chapter 7.
       (c)  After giving reasonable notice to interested common
carriers and to the public, the railroad commission may amend a rule
adopted under Subsection (b).  (Bus. & Com. Code, Secs. 35.14
(part), 35.15.)
       Sec. 252.003.  AGENT WRONGFULLY FAILING OR REFUSING TO ISSUE
BILL OF LADING.  (a)  In this section, "common carrier" does not
include a pipeline company or express company.
       (b)  An agent of a common carrier may not after lawful demand
fail or refuse to issue a bill of lading in accordance with Chapter
7 or a rule of the railroad commission.
       (c)  An agent who violates this section commits an offense.  
An offense under this section is a misdemeanor punishable by:
             (1)  confinement in the county jail for a term of not
more than six months;
             (2)  a fine not to exceed $200; or
             (3)  both the fine and confinement.  (Bus. & Com. Code,
Secs. 35.14 (part), 35.16.)
       Sec.252.004.AGENT ISSUING FRAUDULENT BILL OF LADING.  (a)  
In this section, "common carrier" does not include a pipeline
company or express company.
       (b)  An agent of a common carrier may not with intent to
defraud a person:
             (1)  issue a bill of lading;
             (2)  incorrectly describe goods or the quantity of
goods in a bill of lading; or
             (3)  issue a bill of lading without authority.
       (c)  An agent who violates this section commits an offense.  
An offense under this section is a felony punishable by
imprisonment in the Texas Department of Criminal Justice for a term
of not more than 10 years or less than two years.  (Bus. & Com. Code,
Secs. 35.14 (part), 35.17.)
       Sec. 252.005.  AGENT ISSUING ORDER BILL OF LADING IN
DUPLICATE OR SET OF PARTS.  (a)  Except where customary in overseas
transportation, an agent of a common carrier may not knowingly
issue or aid in issuing an order bill of lading in duplicate or in a
set of parts.
       (b)  An agent who violates this section commits an offense.  
An offense under this section is a felony punishable by:
             (1)  imprisonment in the Texas Department of Criminal
Justice for a term of not more than five years; and
             (2)  a fine not to exceed $5,000. (Bus. & Com. Code,
Sec. 35.18.)
       Sec. 252.006.  FRAUDULENTLY INDUCING ISSUANCE OF BILL OF
LADING.  (a)  A person may not, with intent to defraud, induce an
agent of a common carrier to:
             (1)  issue to the person a bill of lading; or
             (2)  materially misrepresent in a bill of lading issued
on behalf of the common carrier the quantity of goods described in
the bill of lading.
       (b)  A person who violates this section commits an offense.  
An offense under this section is a felony punishable by
imprisonment in the Texas Department of Criminal Justice for a term
of not more than five years or less than two years.  (Bus. & Com.
Code, Sec. 35.20.)
       Sec. 252.007.  FRAUDULENTLY NEGOTIATING OR TRANSFERRING
BILL OF LADING.  (a)  A person may not, with intent to defraud,
negotiate or transfer a bill of lading that:
             (1)  is issued in violation of Chapter 7; or
             (2)  contains a false, material statement of fact.
       (b)  A person who violates this section commits an offense.  
An offense under this section is a felony punishable by
imprisonment in the Texas Department of Criminal Justice for a term
of not more than 10 years.  (Bus. & Com. Code, Sec. 35.21.)
CHAPTER 253. PROTESTED OUT-OF-STATE DRAFTS
Sec. 253.001.  DAMAGES ON PROTESTED OUT-OF-STATE DRAFTS
CHAPTER 253. PROTESTED OUT-OF-STATE DRAFTS
       Sec.253.001.DAMAGES ON PROTESTED OUT-OF-STATE DRAFTS.
The holder of a protested draft is entitled to damages in an amount
equal to 10 percent of the amount of the draft, plus interest and
the costs of suit, if:
             (1)  the draft was drawn by a merchant in this state on
the merchant's agent or factor outside this state; and
             (2)  the drawer's or indorser's liability on the draft
has been fixed.  (Bus. & Com. Code, Sec. 35.39.)
CHAPTER 254.  NOTE OR LIEN IDENTIFYING A PATENT RIGHT
Sec. 254.001.  IDENTIFICATION OF PATENT RIGHT
Sec. 254.002.  FAILURE TO IDENTIFY PATENT RIGHT;
               CRIMINAL PENALTY
CHAPTER 254.  NOTE OR LIEN IDENTIFYING A PATENT RIGHT
       Sec.254.001.IDENTIFICATION OF PATENT RIGHT.  (a)  A note
or lien evidencing or securing the purchase price for a patent right
or patent right territory must contain on the face of the note or
lien a statement that the note or lien was given for a patent right
or patent right territory.
       (b)  The statement required by Subsection (a):
             (1)  is notice to a subsequent purchaser of the note or
lien of all equities between the original parties to the note or
lien; and
             (2)  subjects a subsequent holder of the note or lien to
all defenses available against the original parties to the note or
lien. (Bus. & Com. Code, Secs. 35.40(a), (b).)
       Sec. 254.002.  FAILURE TO IDENTIFY PATENT RIGHT; CRIMINAL
PENALTY.  (a)  A person selling a patent right or patent right
territory may not take a note or lien evidencing or securing the
purchase price for the patent right or patent right territory
without placing on the face of the note or lien the statement
required by Section 254.001(a).
       (b)  A person who violates this section commits an offense.  
An offense under this section is a misdemeanor punishable by a fine
of not less than $25 or more than $200. (Bus. & Com. Code, Secs.
35.40(c), (d).)
TITLE 8.  SECURITY INSTRUMENTS
CHAPTER 261.  UTILITY SECURITY INSTRUMENTS
Sec. 261.001.  DEFINITIONS
Sec. 261.002.  ACT CONSTITUTING FILING
Sec. 261.003.  APPLICABILITY OF CHAPTER
Sec. 261.004.  FILING UTILITY SECURITY INSTRUMENT WITH
                SECRETARY OF STATE: PERFECTION AND
                NOTICE
Sec. 261.005.  DURATION OF PERFECTION AND NOTICE
Sec. 261.006.  PRIORITIES AND REMEDIES APPLICABLE TO
                CERTAIN PERFECTED SECURITY INTERESTS
Sec. 261.007.  NOTICE OF NAME CHANGE, MERGER, OR
                CONSOLIDATION
Sec. 261.008.  ENDORSEMENT AND FILING BY SECRETARY OF
                STATE; FEES
Sec. 261.009.  CERTIFICATE OF FILING; FEE
Sec. 261.010.  COPY OF FILED UTILITY SECURITY
                INSTRUMENT; FEE
Sec. 261.011.  NOTICE OF UTILITY SECURITY INSTRUMENT
                AFFECTING REAL PROPERTY
CHAPTER 261.  UTILITY SECURITY INSTRUMENTS
       Sec.261.001.DEFINITIONS.  (a)  In this chapter:
             (1)  "Utility" means a person engaged in this state in:
                   (A)  generating, transmitting, or distributing
and selling electric power;
                   (B)  transporting, distributing, and selling,
through a local distribution system, natural or other gas for
domestic, commercial, industrial, or other use;
                   (C)  owning or operating a pipeline to transmit or
sell natural or other gas, natural gas liquids, crude oil, or
petroleum products to another pipeline company or to a refinery,
local distribution system, municipality, or industrial consumer;
                   (D)  providing telephone or telegraph service to
others;
                   (E)  producing, transmitting, or distributing and
selling steam or water;
                   (F)  operating a railroad; or
                   (G)  providing sewer service to others.
             (2)  "Utility security instrument" means:
                   (A)  a mortgage, deed of trust, security
agreement, or other instrument executed to secure payment of a
bond, note, or other obligation of a utility; or
                   (B)  an instrument that supplements or amends an
instrument described by Paragraph (A), including a signed copy of
the instrument.
       (b)  The definitions in Chapters 1 and 9 apply to this
chapter.  (Bus. & Com. Code, Sec. 35.01.)
       Sec.261.002.ACT CONSTITUTING FILING.  For purposes of
this chapter, a utility security instrument is filed when it is
deposited for filing with the secretary of state.  (New.)
       Sec.261.003.APPLICABILITY OF CHAPTER.  A utility is
subject to the requirements and entitled to the benefits of this
chapter:
             (1)  only if the utility files with the secretary of
state a utility security instrument that states conspicuously on
its title page: "This Instrument Grants A Security Interest By A
Utility"; and
             (2)  only with respect to collateral covered by a
utility security instrument filed by the utility in accordance with
Subdivision (1).  (Bus. & Com. Code, Secs. 35.015(1), (2).)
       Sec. 261.004.  FILING UTILITY SECURITY INSTRUMENT WITH
SECRETARY OF STATE: PERFECTION AND NOTICE.  (a) Subject to
Subsection (b), the filing with the secretary of state of a utility
security instrument executed by a utility and described by Section
261.003(1) and payment of the filing fee prescribed by Section
261.008:
             (1)  constitute perfection of a security interest
created by the instrument in any personal property:
                   (A)  in which a security interest may be perfected
by filing under Chapter 9, including any goods that are or will
become a fixture;
                   (B)  that is located in this state; and
                   (C)  that was owned by the utility when the
instrument was executed or is to be acquired by the utility after
the instrument is executed; and
             (2)  if the instrument is proven, acknowledged, or
certified as otherwise required by law for the recording of real
property mortgages, serve as notice to all persons of the existence
of the instrument and the security interest granted by the
instrument in any real property, or in any fixture on or to be
placed on the property, that:
                   (A)  is located in this state; and
                   (B)  was owned by the utility when the instrument
was executed or is to be acquired by the utility after the
instrument is executed.
       (b)  For perfection or notice under Subsection (a) to be
effective as to a particular item of property, the filed utility
security instrument must:
             (1)  identify the property by type, character, or
description if the property is presently owned personal property,
including a fixture, and for that purpose any description of
personal property or real property is sufficient, regardless of
whether specific, if it reasonably identifies what is described;
             (2)  provide a description of the property if the
property is presently owned real property; or
             (3)  if the property is to be acquired after the
instrument is executed, state conspicuously on its title page:
"This Instrument Contains After-Acquired Property Provisions."
       (c)  A filing under this section satisfies any requirement
of:
             (1)  a filing of the utility security instrument or a
financing statement in the office of a county clerk if that filing
would otherwise be necessary to perfect a security interest; and
             (2)  a recording of the utility security instrument in
the office of a county clerk if that recording would otherwise make
the instrument effective as to all creditors and subsequent
purchasers for valuable consideration without notice.  (Bus. & Com.
Code, Secs. 35.02(a), (b), (c).)
       Sec.261.005.DURATION OF PERFECTION AND NOTICE.  The
perfection and notice provided by the filing of a utility security
instrument under Section 261.004 take effect on the date of filing
and remain in effect without any renewal, refiling, or continuation
statement until the interest granted as security is released by the
filing of a termination statement, or a release of all or a part of
the property, signed by the secured party.  (Bus. & Com. Code, Sec.
35.03.)
       Sec. 261.006.  PRIORITIES AND REMEDIES APPLICABLE TO CERTAIN
PERFECTED SECURITY INTERESTS.  The provisions of Chapter 9 relating
to priorities and remedies apply to security interests in personal
property, including fixtures, perfected under Section 261.004.  
(Bus. & Com. Code, Sec. 35.02(d).)
       Sec. 261.007.  NOTICE OF NAME CHANGE, MERGER, OR
CONSOLIDATION.  (a) A utility that changes its name or merges or
consolidates after filing a utility security instrument under
Section 261.004 shall promptly file with the secretary of state a
written statement of the name change, merger, or consolidation.  
The written statement must:
             (1)  be signed by the secured party and the utility;
             (2)  identify the appropriate utility security
instrument by file number; and
             (3)  state the name of the utility after the name
change, merger, or consolidation.
       (b)  Unless a written statement is filed under Subsection (a)
not later than four months after the effective date of the name
change, merger, or consolidations, the filing of a utility security
instrument before the name change, merger, or consolidation does
not constitute perfection or serve as notice under Section 261.004
of a security interest in property acquired by the utility more than
four months after the name change, merger, or consolidation.  (Bus. &
Com. Code, Sec. 35.04.)
       Sec. 261.008.  ENDORSEMENT AND FILING BY SECRETARY OF STATE;
FEES.  (a)  The secretary of state shall endorse on a utility
security instrument and any statement of name change, merger, or
consolidation filed with the secretary of state:
             (1)  the day and hour of receipt; and
             (2)  the assigned file number.
       (b)  In the absence of other evidence, an endorsement under
Subsection (a) is conclusive proof of the time and fact of filing.
       (c)  The secretary of state shall file in adequate filing
devices and retain in the secretary of state's office all utility
security instruments and statements of name change, merger, or
consolidation filed with the secretary of state.
       (d)  The secretary of state shall charge a $25 fee to:
             (1)  file and index:
                   (A)  a utility security instrument;
                   (B)  an instrument that supplements or amends a
utility security instrument; or
                   (C)  a statement of name change, merger, or
consolidation; and
             (2)  stamp a copy of a document described by
Subdivision (1), provided by the secured party or the utility, to
indicate the date and place of filing. (Bus. & Com. Code, Sec.
35.05.)
       Sec.261.009.CERTIFICATE OF FILING; FEE.  (a)  On request
of any person, the secretary of state shall issue a certificate
that:
             (1)  indicates whether on the date and hour stated in
the request, there is on file any presently effective utility
security instrument naming a particular utility; and
             (2)  if there is, states:
                   (A)  the date and hour the utility security
instrument was filed; and
                   (B)  the names and addresses of each secured
party.
       (b)  The fee for a certificate under this section is:
             (1)  $10, if the request for the certificate is in the
standard form prescribed by the secretary of state; or
             (2)  $25, if the request is not in the standard form.  
(Bus. & Com. Code, Sec. 35.06 (part).)
       Sec. 261.010.  COPY OF FILED UTILITY SECURITY INSTRUMENT;
FEE.  (a)  On request and payment of the fee prescribed by
Subsection (b), the secretary of state shall provide a person with a
copy of any filed utility security instrument.
       (b)  The fee for a copy under this section is $1.50 per page,
but may not be less than $5 or more than $100 for each request
concerning a particular utility.  (Bus. & Com. Code, Sec. 35.06
(part).)
       Sec. 261.011.  NOTICE OF UTILITY SECURITY INSTRUMENT
AFFECTING REAL PROPERTY.  (a)  If a utility security instrument
filed with the secretary of state under Section 261.004 grants a
security interest in real property owned by the utility, a notice of
utility security instrument affecting real property must be
recorded in the office of the county clerk in the county in which
the real property is located. The notice must state:
             (1)  the name of the utility that executed the utility
security instrument;
             (2)  that a utility security instrument affecting real
property in the county has been executed by the utility; and
             (3)  that the utility security instrument was filed,
and other security instruments may be on file, with the secretary of
state.
       (b)  A notice recorded under Subsection (a) is sufficient to
provide notice of any other security instrument filed with the
secretary of state that:
             (1)  was executed by the utility; and
             (2)  grants a security interest in any real property
located in the county in which the notice was recorded or in any
fixture on the property.
       (c)  The county clerk shall record and index a notice
described by Subsection (a) in the same records and indices as the
clerk records and indexes mortgages on real property.
       (d)  The county clerk shall maintain a separate index of
utility security instruments and continuation statements recorded
under prior law.  (Bus. & Com. Code, Secs. 35.07(a), (b) (part),
(c), (d).)
TITLE 9.  APPLICABILITY OF LAW TO COMMERCIAL TRANSACTIONS
CHAPTER 271.  RIGHTS OF PARTIES TO CHOOSE LAW APPLICABLE
TO CERTAIN TRANSACTIONS
Sec. 271.001.  DEFINITION
Sec. 271.002.  SUBSTANTIALLY SIMILAR OR RELATED
                TRANSACTIONS
Sec. 271.003.  CONFLICT-OF-LAWS RULES
Sec. 271.004.  DETERMINATION OF REASONABLE RELATION OF
                TRANSACTION TO PARTICULAR JURISDICTION
Sec. 271.005.  LAW GOVERNING ISSUE RELATING TO
                QUALIFIED TRANSACTION
Sec. 271.006.  LAW GOVERNING INTERPRETATION OR
                CONSTRUCTION OF AGREEMENT RELATING TO
                QUALIFIED TRANSACTION
Sec. 271.007.  LAW GOVERNING VALIDITY OR ENFORCEABILITY
                OF TERM OF AGREEMENT RELATING TO
                QUALIFIED TRANSACTION
Sec. 271.008.  APPLICABILITY TO CERTAIN REAL PROPERTY
                TRANSACTIONS; EXCEPTIONS
Sec. 271.009.  EXCEPTION:  MARRIAGE OR ADOPTION
Sec. 271.010.  EXCEPTION:  DECEDENT'S ESTATE
Sec. 271.011.  EXCEPTION: OTHER STATUTE SPECIFYING
                GOVERNING LAW
CHAPTER 271.  RIGHTS OF PARTIES TO CHOOSE LAW APPLICABLE
TO CERTAIN TRANSACTIONS
       Sec.271.001.DEFINITION. In this chapter, "qualified
transaction" means a transaction under which a party:
             (1)  pays or receives, or is obligated to pay or is
entitled to receive, consideration with an aggregate value of at
least $1 million; or
             (2)  lends, advances, borrows, or receives, or is
obligated to lend or advance or is entitled to borrow or receive,
money or credit with an aggregate value of at least $1 million.
(Bus. & Com. Code, Sec. 35.51(a)(2).)
       Sec. 271.002.  SUBSTANTIALLY SIMILAR OR RELATED
TRANSACTIONS. For purposes of this chapter, two or more
substantially similar or related transactions are considered a
single transaction if the transactions:
             (1)  are entered into contemporaneously; and
             (2)  have at least one common party. (Bus. & Com. Code,
Sec. 35.51(a)(1).)
       Sec.271.003.CONFLICT-OF-LAWS RULES.  For purposes of this
chapter, a reference to the law of a particular jurisdiction does
not include that jurisdiction's conflict-of-laws rules.  (Bus. &
Com. Code, Secs. 35.51(b) (part), (c) (part), (e) (part).)
       Sec. 271.004.  DETERMINATION OF REASONABLE RELATION OF
TRANSACTION TO PARTICULAR JURISDICTION. (a)  For purposes of this
chapter, a transaction bears a reasonable relation to a particular
jurisdiction if the transaction, the subject matter of the
transaction, or a party to the transaction is reasonably related to
that jurisdiction.
       (b)  A transaction bears a reasonable relation to a
particular jurisdiction if:
             (1)  a party to the transaction is a resident of that
jurisdiction;
             (2)  a party to the transaction has the party's place of
business or, if that party has more than one place of business, the
party's chief executive office or an office from which the party
conducts a substantial part of the negotiations relating to the
transaction, in that jurisdiction;
             (3)  all or part of the subject matter of the
transaction is located in that jurisdiction;
             (4)  a party to the transaction is required to perform
in that jurisdiction a substantial part of the party's obligations
relating to the transaction, such as delivering payments; or
             (5)  a substantial part of the negotiations relating to
the transaction occurred in that  jurisdiction and an agreement
relating to the transaction was signed in that jurisdiction by a
party to the transaction. (Bus. & Com. Code, Sec. 35.51(d).)
       Sec. 271.005.  LAW GOVERNING ISSUE RELATING TO QUALIFIED
TRANSACTION.  (a)  Except as provided by Section 271.007,
271.008(b), 271.009, 271.010, or 271.011 or by Chapter 272, the law
of a particular jurisdiction governs an issue relating to a
qualified transaction if:
             (1)  the parties to the transaction agree in writing
that the law of that jurisdiction governs the issue, including the
validity or enforceability of an agreement relating to the
transaction or a provision of the agreement; and
             (2)  the transaction bears a reasonable relation to
that jurisdiction.
       (b)  The law of a particular jurisdiction governs an issue
described by this section regardless of whether the application of
that law is contrary to a fundamental or public policy of this state
or of any other jurisdiction.  (Bus. & Com. Code, Sec. 35.51(b)
(part).)
       Sec. 271.006.  LAW GOVERNING INTERPRETATION OR CONSTRUCTION
OF AGREEMENT RELATING TO QUALIFIED TRANSACTION.  Except as provided
by Section 271.008(b), 271.009, 271.010, or 271.011 and by Chapter
272, if the parties to a qualified transaction agree in writing that
the law of a particular jurisdiction governs the interpretation or
construction of an agreement relating to the transaction or a
provision of the agreement, the law of that jurisdiction governs
that issue regardless of whether the transaction bears a reasonable
relation to that jurisdiction. (Bus. & Com. Code, Sec. 35.51(c)
(part).)
       Sec. 271.007.  LAW GOVERNING VALIDITY OR ENFORCEABILITY OF
TERM OF AGREEMENT RELATING TO QUALIFIED TRANSACTION. (a)  Except as
provided by Section 271.008(b), 271.009, 271.010, or 271.011 or by
Chapter 272, this section applies if:
             (1)  the parties to a qualified transaction agree in
writing that the law of a particular jurisdiction governs the
validity or enforceability of an agreement relating to the
transaction or a provision of the agreement;
             (2)  the transaction bears a reasonable relation to
that jurisdiction; and
             (3)  a term of the agreement or of that provision is
invalid or unenforceable under the law of that jurisdiction but is
valid or enforceable under the law of the jurisdiction that has the
most significant relation to the transaction, the subject matter of
the transaction, and the parties.
       (b)  If this section applies:
             (1)  the law of the jurisdiction that has the most
significant relation to the transaction, the subject matter of the
transaction, and the parties governs the validity or enforceability
of a term described by Subsection (a)(3); and
             (2)  the law of the jurisdiction that the parties agree
would govern the validity or enforceability of the agreement or
provision governs the validity or enforceability of the other terms
of the agreement or provision. (Bus. & Com. Code, Sec. 35.51(e)
(part).)
       Sec. 271.008.  APPLICABILITY TO CERTAIN REAL PROPERTY
TRANSACTIONS; EXCEPTIONS.  (a)  Sections 271.004-271.007 apply to
the determination of the law that governs an issue relating to a
transaction involving real property other than a matter described
by Subsection (b), including the validity or enforceability of an
indebtedness incurred in consideration for the transfer of, or the
payment of which is secured by a lien on, real property.
       (b)  Sections 271.004-271.007 do not apply to the
determination of the law that governs:
             (1)  whether a transaction transfers or creates an
interest in real property for security purposes or otherwise;
             (2)  the nature of an interest in real property that is
transferred or created by a transaction;
             (3)  the method for foreclosure of a lien on real
property;
             (4)  the nature of an interest in real property that
results from foreclosure; or
             (5)  the manner and effect of recording or failing to
record evidence of a transaction that transfers or creates an
interest in real property. (Bus. & Com. Code, Secs. 35.51(f)
(part), (g).)
       Sec.271.009.EXCEPTION: MARRIAGE OR ADOPTION.  Sections
271.004-271.007 do not apply to the determination of the law that
governs:
             (1)  the validity of a marriage or an adoption;
             (2)  whether a marriage has been terminated; or
             (3)  the effect of a marriage on property owned by a
spouse at the time of the marriage or acquired by either spouse
during the marriage. (Bus. & Com. Code, Sec. 35.51(f) (part).)
       Sec.271.010.EXCEPTION: DECEDENT'S ESTATE.  Sections
271.004-271.007 do not apply to the determination of the law that
governs:
             (1)  whether an instrument is a will;
             (2)  the rights of persons under a will; or
             (3)  the rights of persons in the absence of a will.  
(Bus. & Com. Code, Sec. 35.51(f) (part).)
       Sec. 271.011.  EXCEPTION:  OTHER STATUTE SPECIFYING
GOVERNING LAW.  Sections 271.004-271.007 do not apply to the
determination of the law that governs an issue that another statute
of this state or a statute of the United States provides is governed
by the law of a particular jurisdiction. (Bus. & Com. Code, Sec.
35.51(f) (part).)
CHAPTER 272. LAW APPLICABLE TO CERTAIN CONTRACTS FOR CONSTRUCTION
OR REPAIR OF REAL PROPERTY IMPROVEMENTS
Sec. 272.001.  VOIDABLE CONTRACT PROVISION
Sec. 272.002.  CONTRACT PRINCIPALLY FOR CONSTRUCTION OR
                REPAIR OF REAL PROPERTY IMPROVEMENTS
CHAPTER 272. LAW APPLICABLE TO CERTAIN CONTRACTS FOR CONSTRUCTION
OR REPAIR OF REAL PROPERTY IMPROVEMENTS
       Sec.272.001.VOIDABLE CONTRACT PROVISION. (a) This section
applies only to a contract that is principally for the construction
or repair of an improvement to real property located in this state.
       (b)  If a contract contains a provision making the contract
or any conflict arising under the contract subject to another
state's law, litigation in the courts of another state, or
arbitration in another state, that provision is voidable by the
party obligated by the contract to perform the construction or
repair. (Bus. & Com. Code, Sec. 35.52(a).)
       Sec. 272.002.  CONTRACT PRINCIPALLY FOR CONSTRUCTION OR
REPAIR OF REAL PROPERTY IMPROVEMENTS. (a)  For purposes of this
chapter, a contract is principally for the construction or repair
of an improvement to real property located in this state if the
contract obligates a party, as the party's principal obligation
under the contract, to provide labor or labor and materials as a
general contractor or subcontractor for the construction or repair
of an improvement to real property located in this state.
       (b)  For purposes of this chapter, a contract is not
principally for the construction or repair of an improvement to
real property located in this state if the contract:
             (1)  is a partnership agreement or other agreement
governing an entity or trust;
             (2)  provides for a loan or other extension of credit
and the party promising to construct or repair the improvement is
doing so as part of the party's agreements with the lender or other
person who extends credit; or
             (3)  is for the management of real property or
improvements and the obligation to construct or repair the
improvement is part of that management.
       (c)  Subsections (a) and (b) do not provide an exclusive list
of the situations in which a contract is or is not principally for
the construction or repair of an improvement to real property
located in this state. (Bus. & Com. Code, Secs. 35.52(b), (c), (d).)
CHAPTER 273.  LAW OR FORUM APPLICABLE TO CERTAIN CONTRACTS FOR
DISPOSITION OF GOODS
Sec. 273.001.  CONTRACTS SUBJECT TO CHAPTER
Sec. 273.002.  NOTICE OF APPLICABLE LAW OR FORUM
Sec. 273.003.  FAILURE TO PROVIDE NOTICE
CHAPTER 273.  LAW OR FORUM APPLICABLE TO CERTAIN CONTRACTS FOR
DISPOSITION OF GOODS
       Sec.273.001.CONTRACTS SUBJECT TO CHAPTER.  This chapter
applies to a contract only if:
             (1)  the contract is for the sale, lease, exchange, or
other disposition for value of goods for the price, rental, or other
consideration of $50,000 or less;
             (2)  any element of the contract's execution occurred
in this state;
             (3)  a party to the contract is:
                   (A)  an individual resident of this state; or
                   (B)  an association or corporation that is created
under the laws of this state or has its principal place of business
in this state; and
             (4)  Section 1.301 does not apply to the contract.  
(Bus. & Com. Code, Sec. 35.53(a).)
       Sec.273.002.NOTICE OF APPLICABLE LAW OR FORUM.  If a
contract contains a provision making the contract or any conflict
arising under the contract subject to another state's laws,
litigation in the courts of another state, or arbitration in
another state, that provision must be set out conspicuously in
print, type, or other form of writing that is boldfaced,
capitalized, underlined, or otherwise set out in such a manner that
a reasonable person against whom the provision may operate would
notice the provision. (Bus. & Com. Code, Sec. 35.53(b) (part).)
       Sec.273.003.FAILURE TO PROVIDE NOTICE.  A contract
provision that does not comply with Section 273.002 is voidable by a
party against whom the provision is sought to be enforced.  (Bus. &
Com. Code, Sec. 35.53(b) (part).)
CHAPTER 274. LAW APPLICABLE TO CONTRACT MADE OVER INTERNET
Sec. 274.001.  DEFINITION
Sec. 274.002.  APPLICABILITY OF CHAPTER; EXCEPTION
Sec. 274.003.  STATE LAW GOVERNING CONTRACT; BURDEN OF
                PROOF
Sec. 274.004.  APPLICABILITY OF OTHER LAW TO CONTRACT
CHAPTER 274. LAW APPLICABLE TO CONTRACT MADE OVER INTERNET
       Sec.274.001.DEFINITION. In this chapter, "Internet"
means the largest nonproprietary nonprofit cooperative public
computer network, popularly known as the Internet. (Bus. & Com.
Code, Sec. 35.531(a).)
       Sec.274.002.APPLICABILITY OF CHAPTER; EXCEPTION. (a)  
Except as provided by Subsection (b), this chapter applies only to a
contract made solely over the Internet between a person located in
this state and a person located outside this state who does not
maintain an office or agent in this state for transacting business
in this state.
       (b)  This chapter does not apply to a contract to which
Chapter 271 applies. (Bus. & Com. Code, Secs. 35.531(b), (e)
(part).)
       Sec. 274.003.  STATE LAW GOVERNING CONTRACT; BURDEN OF
PROOF. (a) A contract is governed by the law of this state unless
each party to the contract who is located in this state:
             (1)  is given notice that the law of the state in which
another party to the contract is located applies to the contract;
and
             (2)  agrees to the application of that state's law.
       (b)  A person asserting that the law of another state governs
a contract has the burden of proving that notice was given and
agreement was obtained as specified by Subsection (a). (Bus. & Com.
Code, Secs. 35.531(c), (d).)
       Sec.274.004.APPLICABILITY OF OTHER LAW TO CONTRACT.
Section 1.031 and Chapter 273 do not apply to a contract to which
this chapter applies.  (Bus. & Com. Code, Sec. 35.531(e) (part).)
TITLE 10.  USE OF TELECOMMUNICATIONS
SUBTITLE A.  TELEPHONES
CHAPTER 301.  TELEPHONE SOLICITATION PRACTICES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 301.001.  DEFINITIONS 
[Sections 301.002-301.050 reserved for expansion]
SUBCHAPTER B. PERMITTED AND PROHIBITED PRACTICES
Sec. 301.051.  TELEPHONE SOLICITATION REQUIREMENTS 
Sec. 301.052.  CHARGES TO CONSUMER'S CREDIT CARD
                ACCOUNT 
[Sections 301.053-301.100 reserved for expansion]
SUBCHAPTER C. ENFORCEMENT
Sec. 301.101.  INVESTIGATION BY ATTORNEY GENERAL'S
                OFFICE 
Sec. 301.102.  INJUNCTIVE RELIEF 
Sec. 301.103.  CIVIL PENALTY; RESTITUTION 
Sec. 301.104.  CIVIL ACTION 
Sec. 301.105.  VENUE 
CHAPTER 301.  TELEPHONE SOLICITATION PRACTICES
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.301.001.DEFINITIONS.  In this chapter:
             (1)  "Automated dial announcing device" means
automated equipment used for telephone solicitation or collection
that can:
                   (A)  store telephone numbers to be called or
produce numbers to be called through use of a random or sequential
number generator; and
                   (B)  convey, alone or in conjunction with other
equipment, a prerecorded or synthesized voice message to the number
called without the use of a live operator.
             (2)  "Consumer" means a person who is solicited to
purchase, lease, or receive a consumer good or service.
             (3)  "Consumer good or service" means:
                   (A)  real property or tangible or intangible
personal property that is normally used for personal, family, or
household purposes, including:
                         (i)  personal property intended to be
attached to or installed in any real property;
                         (ii)  a cemetery lot; and
                         (iii)  a time-share estate; or
                   (B)  a service related to real or personal
property.
             (4)  "Consumer telephone call" means an unsolicited
call made to a residential telephone number by a telephone
solicitor to:
                   (A)  solicit a sale of a consumer good or service;
                   (B)  solicit an extension of credit for a consumer
good or service; or
                   (C)  obtain information that will or may be used
to directly solicit a sale of a consumer good or service or to
extend credit for the sale.
             (5)  "Telephone solicitor" means a person who makes or
causes to be made a consumer telephone call, including a call made
by an automated dial announcing device.  (Bus. & Com. Code, Sec.
37.01.)
[Sections 301.002-301.050 reserved for expansion]
SUBCHAPTER B. PERMITTED AND PROHIBITED PRACTICES
       Sec.301.051.TELEPHONE SOLICITATION REQUIREMENTS.  (a)  
This section does not apply to a consumer telephone call made:
             (1)  in response to the express request of the
consumer;
             (2)  primarily in connection with an existing debt or
contract for which payment or performance has not been completed at
the time of the call; or
             (3)  to a consumer with whom the telephone solicitor
has a prior or existing business relationship.
       (b)  A telephone solicitor may not make a consumer telephone
call to a consumer unless:
             (1)  the telephone solicitor, immediately after making
contact with the consumer to whom the call is made, identifies:
                   (A)  himself or herself by name;
                   (B)  the business on whose behalf the telephone
solicitor is calling; and
                   (C)  the purpose of the call;
             (2)  the telephone solicitor makes the call after 12
noon and before 9 p.m. on a Sunday or after 9 a.m. and before 9 p.m.
on a weekday or a Saturday; and
             (3)  for those calls in which an automated dial
announcing device is used, the device disconnects the consumer's
telephone line within the period specified by Section 55.126,
Utilities Code, after either the telephone solicitor or the
consumer terminates the call. (Bus. & Com. Code, Sec. 37.02.)
       Sec.301.052.CHARGES TO CONSUMER'S CREDIT CARD ACCOUNT.  A
person who sells consumer goods or services through the use of a
telephone solicitor may not make or submit a charge to a consumer's
credit card account unless the seller:
             (1)  provides that:
                   (A)  the consumer may receive a full refund for
returning undamaged and unused goods or canceling services by
providing notice to the seller not later than the seventh day after
the date the consumer receives the goods or services; and
                   (B)  the seller will process:
                         (i)  a refund not later than the 30th day
after the date the seller receives the returned goods from the
consumer; or
                         (ii)  a full refund not later than the 30th
day after the date the consumer cancels an order for the purchase of
services not performed or a pro rata refund for any services not yet
performed for the consumer;
             (2)  provides to the consumer a written contract fully
describing the goods or services being offered, the total price to
be charged, the name, address, and business telephone number of the
seller, and any terms affecting the sale and receives from the
consumer a signed copy of the contract; or
             (3)  is an organization that qualifies for an exemption
from federal income taxation under Section 501(c)(3), Internal
Revenue Code of 1986, and has obtained that exemption from the
Internal Revenue Service.  (Bus. & Com. Code, Sec. 37.03.)
[Sections 301.053-301.100 reserved for expansion]
SUBCHAPTER C. ENFORCEMENT
       Sec.301.101.INVESTIGATION BY ATTORNEY GENERAL'S OFFICE.  
The attorney general's office shall investigate a complaint
relating to a violation of this chapter.  (Bus. & Com. Code, Sec.
37.04(a) (part).)
       Sec.301.102.INJUNCTIVE RELIEF. (a)  The attorney
general's office may petition a district court for a temporary
restraining order to restrain a continuing violation of this
chapter.
       (b)  A district court, on petition of the attorney general's
office and on finding that a person is violating this chapter, may:
             (1)  issue an injunction prohibiting the person from
continuing the violation; or
             (2)  grant any other injunctive relief warranted by the
facts. (Bus. & Com. Code, Secs. 37.04(a) (part), (b).)
       Sec.301.103.CIVIL PENALTY; RESTITUTION.  (a)  A person who
knowingly violates this chapter is liable for a civil penalty of not
more than $10,000 for each violation.
       (b)  In addition to bringing an action for injunctive relief
under Section 301.102, the attorney general's office may seek
restitution and petition a district court for the assessment of a
civil penalty as provided by this chapter.  (Bus. & Com. Code, Secs.
37.04(a) (part), 37.05(a), (b).)
       Sec.301.104.CIVIL ACTION.  A consumer injured by a
violation of this chapter may bring an action for recovery of
damages.  The damages awarded may not be less than the amount the
consumer paid the person who sold the consumer goods or services
through the use of the telephone solicitor, plus reasonable
attorney's fees and court costs.  (Bus. & Com. Code, Sec. 37.05(c).)
       Sec.301.105.VENUE. Venue for an action brought under this
chapter is in:
             (1)  the county in which the consumer telephone call
originated;
             (2)  the county in which the consumer telephone call
was received; or
             (3)  Travis County.  (Bus. & Com. Code, Sec. 37.04(c).)
CHAPTER 302.  REGULATION OF TELEPHONE SOLICITATION
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 302.001.  DEFINITIONS 
Sec. 302.002.  MAKING TELEPHONE SOLICITATION 
Sec. 302.003.  LIBERAL CONSTRUCTION AND APPLICATION 
Sec. 302.004.  ATTEMPTED WAIVER VOID 
[Sections 302.005-302.050 reserved for expansion]
SUBCHAPTER B.  EXEMPTIONS
Sec. 302.051.  BURDEN OF PROOF 
Sec. 302.052.  EXEMPTIONS APPLY ONLY TO SELLERS;
                EXCEPTION 
Sec. 302.053.  EXEMPTION: PERSONS REGULATED BY OTHER
                LAW 
Sec. 302.054.  EXEMPTION: PERSONS SELLING MEDIA
                SUBSCRIPTIONS, CERTAIN MERCHANDISE, OR
                ITEMS FROM CERTAIN CATALOGS 
Sec. 302.055.  EXEMPTION: EDUCATIONAL AND NONPROFIT
                ORGANIZATIONS 
Sec. 302.056.  EXEMPTION:  CERTAIN COMMERCIAL SALES 
Sec. 302.057.  EXEMPTION: PERSON SOLICITING FOOD SALES 
Sec. 302.058.  EXEMPTION: SOLICITATION OF FORMER OR
                CURRENT CUSTOMERS 
Sec. 302.059.  EXEMPTION: PERSONS WHO MAKE CERTAIN
                SALES PRESENTATIONS OR MAKE SALES AT
                ESTABLISHED RETAIL LOCATIONS 
Sec. 302.060.  EXEMPTION: CERTAIN PERSONS PROVIDING
                TELEPHONE SOLICITATION SERVICES
                PREDOMINANTLY FOR EXEMPT PERSONS 
Sec. 302.061.  EXEMPTION: PERSONS CONDUCTING CERTAIN
                ISOLATED TELEPHONE SOLICITATIONS 
[Sections 302.062-302.100 reserved for expansion]
SUBCHAPTER C.  REGISTRATION
Sec. 302.101.  REGISTRATION CERTIFICATE REQUIRED 
Sec. 302.102.  FILING OF REGISTRATION STATEMENT; PUBLIC
                INFORMATION 
Sec. 302.103.  ISSUANCE OF REGISTRATION CERTIFICATE 
Sec. 302.104.  EFFECTIVE DATE OF REGISTRATION
                STATEMENT; RENEWAL 
Sec. 302.105.  ADDENDA REQUIREMENTS 
Sec. 302.106.  FILING FEE 
Sec. 302.107.  SECURITY REQUIREMENTS 
Sec. 302.108.  APPOINTMENT OF SECRETARY OF STATE AS
                AGENT FOR SERVICE 
[Sections 302.109-302.150 reserved for expansion]
SUBCHAPTER D.  DISCLOSURES REQUIRED IN REGISTRATION STATEMENT
Sec. 302.151.  DISCLOSURE OF CERTAIN NAMES, ADDRESSES,
                TELEPHONE NUMBERS, AND ORGANIZATIONAL
                INFORMATION 
Sec. 302.152.  DISCLOSURE OF CERTAIN CONVICTIONS,
                PLEAS, JUDGMENTS, ORDERS,
                BANKRUPTCIES, AND REORGANIZATIONS 
Sec. 302.153.  DISCLOSURE OF CERTAIN SALES INFORMATION 
[Sections 302.154-302.200 reserved for expansion]
SUBCHAPTER E.  ADDITIONAL INFORMATION FROM SELLER
Sec. 302.201.  INFORMATION REQUIRED TO BE POSTED OR
                AVAILABLE AT SELLER'S BUSINESS
                LOCATION 
Sec. 302.202.  DISCLOSURES REQUIRED BEFORE PURCHASE 
Sec. 302.203.  REFERENCE TO COMPLIANCE WITH STATUTE
                PROHIBITED 
[Sections 302.204-302.250 reserved for expansion]
SUBCHAPTER F.  OFFENSES
Sec. 302.251.  VIOLATION OF CERTAIN PROVISIONS 
Sec. 302.252.  ACTING AS SALESPERSON FOR UNREGISTERED
                SELLER 
Sec. 302.253.  REQUEST FOR CREDIT CARD ACCOUNT NUMBER
                OR CHECKING ACCOUNT NUMBER AFTER OFFER
                OF FREE ITEM 
[Sections 302.254-302.300 reserved for expansion]
SUBCHAPTER G.  ENFORCEMENT
Sec. 302.301.  INJUNCTION 
Sec. 302.302.  CIVIL PENALTIES 
Sec. 302.303.  DECEPTIVE TRADE PRACTICES 
Sec. 302.304.  ACTION TO RECOVER AGAINST SECURITY 
CHAPTER 302.  REGULATION OF TELEPHONE SOLICITATION
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec.302.001.DEFINITIONS.  In this chapter:
             (1)  "Item" means property or a service.  The term
includes a coupon book to be used with a business.
             (2)  "Owner" means a person who has control of or is
entitled to, by ownership or other claim, at least 10 percent of a
seller's net income.
             (3)  "Purchaser" means a person who:
                   (A)  is solicited to become or becomes obligated
for the purchase or rental of an item; or
                   (B)  is offered an opportunity to claim or receive
an item.
             (4)  "Salesperson" means a person who is employed or
authorized by a seller to make a telephone solicitation.
             (5)  "Seller" means a person who makes a telephone
solicitation on the person's own behalf.
             (6)  "Supervised financial institution" means a bank,
trust company, savings and loan association, credit union,
industrial loan company, personal property broker, consumer
finance lender, commercial finance lender, insurer, or other
financial institution that is subject to supervision by an official
or agency of this state or the United States.
             (7)  "Telephone solicitation" means a telephone call a
seller or salesperson initiates to induce a person to purchase,
rent, claim, or receive an item. The term includes a telephone call
a purchaser makes in response to a solicitation sent by mail or made
by any other means.  (Bus. & Com. Code, Sec. 38.001.)
       Sec.302.002.MAKING TELEPHONE SOLICITATION.  For purposes
of this chapter, a person makes a telephone solicitation if the
person effects or attempts to effect a telephone solicitation,
including a solicitation initiated by an automatic dialing machine
or a recorded message device. (Bus. & Com. Code, Sec. 38.002.)
       Sec.302.003.LIBERAL CONSTRUCTION AND APPLICATION.  This
chapter shall be liberally construed and applied to promote its
underlying purpose to protect persons against false, misleading, or
deceptive practices in the telephone solicitation business. (Bus. &
Com. Code, Sec. 38.003.)
       Sec.302.004.ATTEMPTED WAIVER VOID.  An attempted waiver
of a provision of this chapter is void. (Bus. & Com. Code, Sec.
38.305.)
[Sections 302.005-302.050 reserved for expansion]
SUBCHAPTER B.  EXEMPTIONS
       Sec.302.051.BURDEN OF PROOF.  (a)  In a civil proceeding
in which a violation of this chapter is alleged, a person who claims
an exemption from the application of this chapter has the burden of
proving the exemption.
       (b)  In a criminal proceeding in which a violation of this
chapter is alleged, a person who claims an exemption from the
application of this chapter as a defense to prosecution has the
burden of producing evidence to support the defense. (Bus. & Com.
Code, Sec. 38.051.)
       Sec.302.052.EXEMPTIONS APPLY ONLY TO SELLERS; EXCEPTION.  
Except as provided by Section 302.060, an exemption from the
application of this chapter applies only to a seller. (Bus. & Com.
Code, Sec. 38.052.)
       Sec.302.053.EXEMPTION: PERSONS REGULATED BY OTHER LAW.  
This chapter does not apply to:
             (1)  a person offering or selling a security that has
been qualified for sale under Section 7, The Securities Act
(Article 581-7, Vernon's Texas Civil Statutes), or that is subject
to an exemption under Section 5 or 6 of that Act;
             (2)  a publicly traded corporation registered with the
Securities and Exchange Commission or the State Securities Board,
or a subsidiary or agent of the corporation;
             (3)  a person who holds a license issued under the
Insurance Code if the solicited transaction is governed by that
code;
             (4)  a supervised financial institution or a parent, a
subsidiary, or an affiliate of a supervised financial institution;
             (5)  a person whose business is regulated by the Public
Utility Commission of Texas or an affiliate of that person, except
that this chapter applies to such a person or affiliate only with
respect to one or more automated dial announcing devices;
             (6)  a person subject to the control or licensing
regulations of the Federal Communications Commission;
             (7)  a person selling a contractual plan regulated by
the Federal Trade Commission trade regulation on use of negative
option plans by sellers in commerce under 16 C.F.R. Part 425;
             (8)  a person subject to filing requirements under
Chapter 1803, Occupations Code; or
             (9)  a person who:
                   (A)  is soliciting a transaction regulated by the
Commodity Futures Trading Commission; and
                   (B)  is registered or holds a temporary license
for the activity described by Paragraph (A) with the Commodity
Futures Trading Commission under the Commodity Exchange Act (7
U.S.C. Section 1 et seq.), if the registration or license has not
expired or been suspended or revoked. (Bus. & Com. Code, Sec.
38.053.)
       Sec. 302.054.  EXEMPTION:  PERSONS SELLING MEDIA
SUBSCRIPTIONS, CERTAIN MERCHANDISE, OR ITEMS FROM CERTAIN
CATALOGS.  This chapter does not apply to:
             (1)  a person soliciting the sale of a subscription to:
                   (A)  a daily or weekly newspaper of general
circulation;
                   (B)  a magazine or other periodical of general
circulation; or
                   (C)  a cable television service;
             (2)  a person selling merchandise under an arrangement
in which the seller periodically ships the merchandise to a
consumer who has consented in advance to receive the merchandise
periodically; or
             (3)  a person periodically issuing and delivering to
purchasers catalogs that each:
                   (A)  include a written description or
illustration and the sales price of each item offered for sale;
                   (B)  include at least 24 full pages of written
material or illustrations;
                   (C)  are distributed in more than one state; and
                   (D)  have an annual circulation of at least
250,000 customers. (Bus. & Com. Code, Sec. 38.054.)
       Sec. 302.055.  EXEMPTION:  EDUCATIONAL AND NONPROFIT
ORGANIZATIONS.  This chapter does not apply to an educational
institution or organization or a nonprofit organization exempt from
taxation under Section 501(c)(3), Internal Revenue Code of 1986.
(Bus. & Com. Code, Sec. 38.055.)
       Sec.302.056.EXEMPTION: CERTAIN COMMERCIAL SALES.  This
chapter does not apply to a sale in which the purchaser is a
business that intends to:
             (1)  resell the item purchased; or
             (2)  use the item purchased in a recycling, reuse,
remanufacturing, or manufacturing process.  (Bus. & Com. Code, Sec.
38.056.)
       Sec.302.057.EXEMPTION: PERSON SOLICITING FOOD SALES.  
This chapter does not apply to a person soliciting the sale of food.
(Bus. & Com. Code, Sec. 38.057.)
       Sec. 302.058.  EXEMPTION: SOLICITATION OF FORMER OR CURRENT
CUSTOMERS. This chapter does not apply to:
             (1)  the solicitation of a contract for the maintenance
or repair of an item previously purchased from the person making the
solicitation or on whose behalf the solicitation is made; or
             (2)  a person who:
                   (A)  is soliciting business from a former or
current customer; and
                   (B)  has operated under the same business name for
at least two years. (Bus. & Com. Code, Sec. 38.058.)
       Sec. 302.059.  EXEMPTION: PERSONS WHO MAKE CERTAIN SALES
PRESENTATIONS OR MAKE SALES AT ESTABLISHED RETAIL LOCATIONS. This
chapter does not apply to:
             (1)  a person conducting a telephone solicitation who:
                   (A)  does not intend to complete or obtain
provisional acceptance of a sale during the telephone solicitation;
                   (B)  does not make a major sales presentation
during the telephone solicitation but arranges for a major sales
presentation to be made face-to-face at a later meeting between the
salesperson and the purchaser; and
                   (C)  does not cause an individual to go to the
purchaser to collect payment for the purchase or to deliver an item
purchased directly following the telephone solicitation; or
             (2)  a person who for at least two years, under the same
name as that used in connection with the person's telemarketing
operations, has operated a retail establishment where consumer
goods are displayed and offered for sale continuously, if a
majority of the person's business involves buyers obtaining
services or products at the retail establishment. (Bus. & Com.
Code, Sec. 38.059.)
       Sec. 302.060.  EXEMPTION: CERTAIN PERSONS PROVIDING
TELEPHONE SOLICITATION SERVICES PREDOMINANTLY FOR EXEMPT PERSONS.
This chapter does not apply to a person:
             (1)  who provides telephone solicitation services
under contract to a seller;
             (2)  who has been operating continuously for at least
three years under the same business name; and
             (3)  for whom at least 75 percent of the person's
contracts are performed on behalf of other persons exempt from the
application of this chapter under this section. (Bus. & Com. Code,
Sec. 38.060(a).)
       Sec. 302.061.  EXEMPTION: PERSONS CONDUCTING CERTAIN
ISOLATED TELEPHONE SOLICITATIONS. This chapter does not apply to a
person engaging in a telephone solicitation that:
             (1)  is an isolated transaction; and
             (2)  is not done in the course of a pattern of repeated
transactions of a similar nature. (Bus. & Com. Code, Sec. 38.061.)
[Sections 302.062-302.100 reserved for expansion]
SUBCHAPTER C.  REGISTRATION
       Sec.302.101.REGISTRATION CERTIFICATE REQUIRED.  (a)  A
seller may not make a telephone solicitation from a location in this
state or to a purchaser located in this state unless the seller
holds a registration certificate for the business location from
which the telephone solicitation is made.
       (b)  A separate registration certificate is required for
each business location from which a telephone solicitation is made.
(Bus. & Com. Code, Sec. 38.101.)
       Sec. 302.102.  FILING OF REGISTRATION STATEMENT; PUBLIC
INFORMATION. (a)  To obtain a registration certificate, a seller
must file with the secretary of state a registration statement
that:
             (1)  is in the form prescribed by the secretary of
state;
             (2)  contains the information required by Subchapter D;
             (3)  is verified by each principal of the seller; and
             (4)  specifies the date and location of verification.
       (b)  Information included in or attached to a registration
statement is public information.
       (c)  In this section, "principal" means an owner, an
executive officer of a corporation, a general partner of a
partnership, a sole proprietor, a trustee of a trust, or another
individual with similar supervisory functions with respect to any
person.  (Bus. & Com. Code, Sec. 38.302.)
       Sec.302.103.ISSUANCE OF REGISTRATION CERTIFICATE.  (a)  
The secretary of state shall issue a registration certificate and
mail the certificate to the seller when the secretary of state
receives:
             (1)  a completed registration statement required by
Section 302.102;
             (2)  the filing fee prescribed by Section 302.106;
             (3)  the security required by Section 302.107; and
             (4)  the consent regarding service of process required
by Section 302.108.
       (b)  If the seller uses a single registration statement to
register more than one business location, the secretary of state
shall:
             (1)  issue a registration certificate for each business
location; and
             (2)  mail all the certificates to the principal
business location shown on the registration statement. (Bus. &
Com. Code, Sec. 38.104.)
       Sec. 302.104.  EFFECTIVE DATE OF REGISTRATION STATEMENT;
RENEWAL.  (a)  A registration statement takes effect on the date the
secretary of state issues the registration certificate and is
effective for one year.
       (b)  A registration statement may be renewed annually by:
             (1)  filing a renewal registration statement
containing the information required by Subchapter D; and
             (2)  paying the filing fee prescribed by Section
302.106.  (Bus. & Com. Code, Sec. 38.105.)
       Sec.302.105.ADDENDA REQUIREMENTS.  (a)  For each quarter
after the effective date of a registration statement, the seller
shall file with the secretary of state an addendum providing the
required registration information for each salesperson who is
soliciting or has solicited on behalf of the seller during the
preceding quarter.
       (b)  A seller may comply with Subsection (a) by filing with
the secretary of state a copy of the "Employer's Quarterly Report"
for employee wages that the seller files with the Texas Workforce
Commission.
       (c)  In addition to filing the quarterly addendum, if a
material change in information submitted in a registration
statement, other than the information described by Subsection (a),
occurs before the date for renewal, a seller shall submit that
information to the secretary of state by filing an addendum.  (Bus. &
Com. Code, Sec. 38.106.)
       Sec.302.106.FILING FEE.  The filing fee for a registration
statement is $200.  (Bus. & Com. Code, Sec. 38.103.)
       Sec.302.107.SECURITY REQUIREMENTS. A registration
statement must be accompanied by security that:
             (1)  is in the amount of $10,000;
             (2)  is in the form of:
                   (A)  a bond executed by a corporate security that:
                         (i)  is approved by the secretary of state;
and
                         (ii)  holds a license to transact business
in this state;
                   (B)  an irrevocable letter of credit issued for
the benefit of the registrant by a supervised financial institution
whose deposits are insured by an agency of the federal government;
or
                   (C)  a certificate of deposit in a supervised
financial institution whose deposits are insured by an agency of
the federal government, the principal of which may be withdrawn
only on the order of the secretary of state; and
             (3)  is conditioned on the seller's compliance with
this chapter. (Bus. & Com. Code, Sec. 38.107.)
       Sec. 302.108.  APPOINTMENT OF SECRETARY OF STATE AS AGENT
FOR SERVICE.  (a)  A seller shall file with the secretary of state,
in the form prescribed by the secretary of state, an irrevocable
consent appointing the secretary of state to act as the seller's
agent to receive service of process in a noncriminal action or
proceeding that may arise under this chapter against the seller or
the seller's successor, executor, or administrator if:
             (1)  an agent has not been named under Section
302.151(15);
             (2)  the agent named under Section 302.151(15) has
resigned or died and the name of a successor agent has not been
submitted under Section 302.105; or
             (3)  the agent named under Section 302.151(15) cannot
with reasonable diligence be found at the disclosed address.
       (b)  Service on the secretary of state under this section has
the same effect as service on the seller. Service on the secretary
of state may be made by:
             (1)  leaving a copy of the process in the office of the
secretary of state;
             (2)  promptly sending by first class mail a notice of
the service and a copy of the process to the seller's principal
business location at the last address on file with the secretary of
state; and
             (3)  filing the plaintiff's affidavit of compliance
with this section in the action or proceeding on or before the
return date of any process or within an additional period that the
court allows.  (Bus. & Com. Code, Sec. 38.108.)
[Sections 302.109-302.150 reserved for expansion]
SUBCHAPTER D.  DISCLOSURES REQUIRED IN REGISTRATION STATEMENT
       Sec. 302.151.  DISCLOSURE OF CERTAIN NAMES, ADDRESSES,
TELEPHONE NUMBERS, AND ORGANIZATIONAL INFORMATION.  A registration
statement must contain:
             (1)  the seller's name and, if different from the
seller's name, the name under which the seller is transacting or
intends to transact business;
             (2)  the name of each parent and affiliated
organization of the seller that:
                   (A)  will transact business with a purchaser
relating to sales solicited by the seller; or
                   (B)  accepts responsibility for statements made
by, or acts of, the seller relating to sales solicited by the
seller;
             (3)  the seller's:
                   (A)  form of business; and
                   (B)  place of organization;
             (4)  for a seller who is a corporation, a copy of the
seller's certificate of formation and bylaws;
             (5)  for a seller who is a partnership, a copy of the
partnership agreement;
             (6)  for a seller who is operating under an assumed
business name, the location where the assumed name has been
registered;
             (7)  for any parent or affiliated organization
disclosed under Subdivision (2), the applicable information that is
required of a seller under Subdivisions (3) through (6);
             (8)  the complete street address of each location of
the seller, designating the principal location from which the
seller will be transacting business;
             (9)  if the principal business location of the seller
is not in this state, a designation of the seller's main location in
this state;
             (10)  a listing of each telephone number to be used by
the seller and the address where each telephone using the number is
located;
             (11)  the name and title of each of the seller's
officers, directors, trustees, general and limited partners, and
owners, as applicable, and the name of each of those persons who has
management responsibilities in connection with the seller's
business activities;
             (12)  for each person whose name is disclosed under
Subdivision (11) and for each seller who is a sole proprietor:
                   (A)  the complete address of the person's
principal residence;
                   (B)  the person's date of birth; and
                   (C)  the number of and state that issued the
person's driver's license;
             (13)  the name and principal residence address of each
person the seller leaves in charge at each location from which the
seller transacts business in this state and the business location
at which each of those persons is or will be in charge;
             (14)  the name and principal residence address of each
salesperson who solicits on the seller's behalf or a copy of the
"Employer's Quarterly Report" for employee wages the seller files
with the Texas Workforce Commission and the name the salesperson
uses while soliciting;
             (15)  the name and address of the seller's agent in this
state, other than the secretary of state, who is authorized to
receive service of process; and
             (16)  the name and address of each financial
institution with which the seller makes banking or similar monetary
transactions and the identification number of each of the seller's
accounts in each institution.  (Bus. & Com. Code, Sec. 38.151.)
       Sec. 302.152.  DISCLOSURE OF CERTAIN CONVICTIONS, PLEAS,
JUDGMENTS, ORDERS, BANKRUPTCIES, AND REORGANIZATIONS.  (a)  With
respect to the seller and each person identified under Section
302.151(11) or (13), a registration statement must identify each
person:
             (1)  who has been convicted of or pleaded nolo
contendere to:
                   (A)  an offense involving an alleged violation of
this chapter; or
                   (B)  fraud, theft, embezzlement, fraudulent
conversion, or misappropriation of property;
             (2)  against whom a final judgment or order has been
entered in a civil or administrative action, including a stipulated
judgment or order, in which the complaint or petition alleged:
                   (A)  acts constituting:
                         (i)  a violation of this chapter; or
                         (ii)  fraud, theft, embezzlement,
fraudulent conversion, or misappropriation of property;
                   (B)  the use of false or misleading
representations in an attempt to sell or otherwise dispose of
property; or
                   (C)  the use of unfair, unlawful, or deceptive
business practices;
             (3)  who is subject to an injunction or restrictive
court order relating to business activity as the result of an action
brought by a federal, state, or local public agency, including an
action affecting a vocational license; or
             (4)  who, during the previous seven tax years:
                   (A)  has filed in bankruptcy;
                   (B)  has been adjudged a bankrupt;
                   (C)  has been reorganized because of insolvency;
or
                   (D)  has been a principal, director, officer,
trustee, or general or limited partner of, or had management
responsibilities for, a corporation, partnership, joint venture,
or other business entity that has filed in bankruptcy, been
adjudged a bankrupt, or been reorganized because of insolvency
while the person held that position or on or before the first
anniversary of the date on which the person last held that position.
       (b)  For each person identified under Subsection (a)(1),
(2), or (3), the statement must disclose:
             (1)  the court that received the plea of nolo
contendere or the court or administrative agency that rendered the
conviction, judgment, or order;
             (2)  the docket number of the matter;
             (3)  the date the plea of nolo contendere was received
or the date of the conviction, judgment, or order; and
             (4)  the name of any government agency that brought the
action resulting in the plea or the conviction, judgment, or order.
       (c)  For each person identified under Subsection (a)(4), the
statement must disclose:
             (1)  the name and location of the person filing in
bankruptcy, adjudged a bankrupt, or reorganized because of
insolvency;
             (2)  the date of the filing, judgment, or
reorganization order;
             (3)  the court having jurisdiction; and
             (4)  the docket number of the matter.  (Bus. & Com.
Code, Sec. 38.152.)
       Sec.302.153.DISCLOSURE OF CERTAIN SALES INFORMATION.  (a)  
A registration statement must be accompanied by:
             (1)  a description of the items the seller is offering
for sale;
             (2)  a copy of all sales information and literature,
including scripts, outlines, instructions, and information
regarding the conduct of telephone solicitations, sample
introductions, sample closings, product information, and contest
or premium-award information, that the seller provides to
salespersons or about which the seller informs salespersons;
             (3)  a copy of all written material the seller sends to
any purchaser; and
             (4)  as applicable, the information and documents
specified by Subsections (b) through (h).
       (b)  If the seller represents or implies, or directs a
salesperson to represent or imply, to a purchaser that the
purchaser will receive a specific item, including a certificate
that the purchaser must redeem to obtain the item described in the
certificate, or one or more items from among designated items,
regardless of whether the items are designated as gifts, premiums,
bonuses, or prizes or otherwise, the registration statement must be
accompanied by:
             (1)  a list of the items described;
             (2)  the value of each item and the basis for the
valuation;
             (3)  the price the seller paid for each item to the
seller's supplier and the name, address, and telephone number of
each item's supplier;
             (4)  all rules and terms a purchaser must meet to
receive the item; and
             (5)  if the purchaser will not receive all of the items
described by the seller:
                   (A)  the manner in which the seller decides which
item a particular purchaser is to receive;
                   (B)  for each item, the odds of a single purchaser
receiving the item; and
                   (C)  the name and address of each purchaser who
has received, during the preceding 12 months, the item with the
greatest value and the item with the lowest odds of being received.
       (c)  If the seller is offering an item that the seller does
not manufacture or supply, the registration statement must be
accompanied by:
             (1)  the name, address, and telephone number of each of
the seller's suppliers;
             (2)  a description of each item provided by each
supplier named in Subdivision (1); and
             (3)  as applicable, the information and documents
specified by Subsections (d) through (g).
       (d)  If the seller is offering an item that the seller does
not manufacture or supply and the possession of the item is to be
retained by the seller or will not be transferred to the purchaser
until the purchaser has paid in full, the registration statement
must be accompanied by:
             (1)  the address of each location where the item will be
kept;
             (2)  if the item is not kept on premises owned by the
seller or at an address registered under Section 302.151(8) or (9),
the name of the owner of the business at which the item will be kept;
and
             (3)  a copy of any contract or other document that
evidences the seller's right to store the item at the address
designated under Subdivision (2).
       (e)  If the seller is offering an item that the seller does
not manufacture or supply and the seller is not selling the item
from the seller's own inventory but purchases the item to fill an
order previously taken from a purchaser, the registration statement
must be accompanied by a copy of each contract or other document
that evidences the seller's ability to call on suppliers to fill the
seller's orders.
       (f)  If the seller is offering an item that the seller does
not manufacture or supply and the seller represents to purchasers
that the seller has insurance or a surety bond relating to a
purchaser's purchase of an item, the registration statement must be
accompanied by a copy of each insurance policy or bond.
       (g)  If the seller is offering an item that the seller does
not manufacture or supply and the seller makes a representation
regarding the post-purchase earning or profit potential of an item,
the registration statement must be accompanied by:
             (1)  data to substantiate the claims made; and
             (2)  if the representation relates to previous sales
made by the seller or a related entity, substantiating data based on
the experiences of at least 50 percent of purchasers of that
particular type of item from the seller or related entity during the
preceding six months, including:
                   (A)  the period the seller or related entity has
been selling the particular type of item being offered;
                   (B)  the number of purchasers of the item known to
the seller or related entity to have made at least the same earnings
or profit as those represented; and
                   (C)  the percentage that the number disclosed
under Paragraph (B) represents of the total number of purchasers
from the seller or related entity of the particular type of item
offered.
       (h)  If the seller is offering to sell an interest in an oil,
gas, or mineral field, well, or exploration site, the registration
statement must be accompanied by:
             (1)  any ownership interest of the seller in each
field, well, or site being offered for sale;
             (2)  the total number of interests to be sold in each
field, well, or site being offered for sale; and
             (3)  if, in selling an interest in any particular
field, well, or site, reference is made to an investigation of the
field, well, or site by the seller or anyone else:
                   (A)  the name, business address, telephone
number, and professional credentials of the person who conducted
the investigation; and
                   (B)  a copy of the report and other documents
relating to the investigation prepared by the person who conducted
the investigation.  (Bus. & Com. Code, Sec. 38.153.)
[Sections 302.154-302.200 reserved for expansion]
SUBCHAPTER E.  ADDITIONAL INFORMATION FROM SELLER
       Sec. 302.201.  INFORMATION REQUIRED TO BE POSTED OR
AVAILABLE AT SELLER'S BUSINESS LOCATION.  (a)  A seller shall post
the registration certificate in a conspicuous place at the location
for which the certificate is issued.
       (b)  A seller shall post in close proximity to the
registration certificate the name of each individual in charge of
the location.
       (c)  A seller shall make available at each of the seller's
business locations a copy of the entire registration statement and
any addenda for inspection by a purchaser or by a representative of
a government agency.  (Bus. & Com. Code, Sec. 38.201.)
       Sec.302.202.DISCLOSURES REQUIRED BEFORE PURCHASE.  When a
telephone solicitation is made and before consummation of any sales
transaction, a seller shall provide to each purchaser:
             (1)  the complete street address of the location from
which the salesperson is calling the purchaser and, if different,
the complete street address of the seller's principal location;
             (2)  if the seller represents or implies that a
purchaser will receive without charge a specified item or one item
from among designated items, regardless of whether the items are
designated as gifts, premiums, bonuses, prizes, or otherwise:
                   (A)  the information required to be filed by
Sections 302.153(b)(4) and (5)(A) and (B), as appropriate; and
                   (B)  the total number of individuals who have
actually received from the seller during the preceding 12 months
the item having the greatest value and the item with the smallest
odds of being received;
             (3)  if the seller is offering to sell an interest in an
oil, gas, or mineral field, well, or exploration site, the
information required by Section 302.153(h); and
             (4)  if the seller represents that an item is being
offered at a price below that usually charged for the item, the name
of the item's manufacturer.  (Bus. & Com. Code, Sec. 38.202.)
       Sec. 302.203.  REFERENCE TO COMPLIANCE WITH STATUTE
PROHIBITED.  A seller may not make or authorize the making of a
reference to the seller's compliance with this chapter to a
purchaser.  (Bus. & Com. Code, Sec. 38.203.)
[Sections 302.204-302.250 reserved for expansion]
SUBCHAPTER F.  OFFENSES
       Sec.302.251.VIOLATION OF CERTAIN PROVISIONS.  (a)  A
person commits an offense if the person knowingly violates Section
302.101, 302.105, 302.201, 302.202, or 302.203. Each violation
constitutes a separate offense.
       (b)  An offense under this section is a Class A misdemeanor.  
(Bus. & Com. Code, Sec. 38.251.)
       Sec. 302.252.  ACTING AS SALESPERSON FOR UNREGISTERED
SELLER.  (a)  A person commits an offense if the person knowingly
acts as a salesperson on behalf of a seller who violates the
registration requirements of this chapter. Each violation
constitutes a separate offense.
       (b)  An offense under this section is a Class A misdemeanor.  
(Bus. & Com. Code, Sec. 38.252.)
       Sec. 302.253.  REQUEST FOR CREDIT CARD ACCOUNT NUMBER OR
CHECKING ACCOUNT NUMBER AFTER OFFER OF FREE ITEM.  (a)  A seller
commits an offense if the seller knowingly:
             (1)  represents or implies that a purchaser will
receive an item without charge, regardless of whether the item is
designated as a gift, premium, bonus, or prize or otherwise; and
             (2)  requests a credit card account number or checking
account number from the purchaser to charge to the credit card
account or debit from the checking account an amount as a condition
precedent to the purchaser's receipt of the item.
       (b)  An offense under this section is a Class A misdemeanor.  
(Bus. & Com. Code, Sec. 38.253.)
[Sections 302.254-302.300 reserved for expansion]
SUBCHAPTER G.  ENFORCEMENT
       Sec.302.301.INJUNCTION.  (a)  The attorney general may
bring an action to enjoin a person from violating this chapter.
       (b)  The attorney general shall notify the defendant of the
alleged prohibited conduct not later than the seventh day before
the date the action is filed, except that notice is not required if
the attorney general intends to request that the court issue a
temporary restraining order.
       (c)  The attorney general is entitled to recover all
reasonable costs of prosecuting the action, including court costs
and investigation costs, deposition expenses, witness fees, and
attorney's fees.  (Bus. & Com. Code, Sec. 38.301.)
       Sec.302.302.CIVIL PENALTIES.  (a)  A person who violates
this chapter is subject to a civil penalty of not more than $5,000
for each violation.
       (b)  A person who violates an injunction issued under Section
302.301 is liable to this state for a civil penalty of not more
than:
             (1)  $25,000 for each violation of the injunction; and
             (2)  $50,000 for all violations of the injunction.
       (c)  The attorney general may bring an action to recover a
civil penalty under Subsection (b) in the court that issued the
original injunction.
       (d)  The party bringing the action also is entitled to
recover all reasonable costs of prosecuting the action, including
court costs and investigation costs, deposition expenses, witness
fees, and attorney's fees.  (Bus. & Com. Code, Sec. 38.302.)
       Sec.302.303.DECEPTIVE TRADE PRACTICES.  (a)  A violation
of this chapter is a false, misleading, or deceptive act or practice
under Subchapter E, Chapter 17.
       (b)  A public or private right or remedy prescribed by
Subchapter E, Chapter 17, may be used to enforce this chapter.  
(Bus. & Com. Code, Sec. 38.303.)
       Sec.302.304.ACTION TO RECOVER AGAINST SECURITY.  (a)  A
person injured by a seller's bankruptcy or by a seller's breach of
an agreement entered into during a telephone solicitation may bring
an action to recover against the security required under Section
302.107.
       (b)  The liability of the surety on a bond provided under
Section 302.107 may not exceed the amount of the bond, regardless of
the number of claims filed or the aggregate amount claimed. If the
amount claimed exceeds the amount of the bond, the surety shall
deposit the amount of the bond with the secretary of state for
distribution to claimants entitled to recovery, and the surety is
then relieved of all liability under the bond.  (Bus. & Com. Code,
Sec. 38.304.)
CHAPTER 303. TELEPHONE SOLICITATION FOR CERTAIN LAW
ENFORCEMENT-RELATED CHARITABLE ORGANIZATIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 303.001.  DEFINITIONS
Sec. 303.002.  SOLICITATION GOVERNED BY CHAPTER
Sec. 303.003.  PUBLIC ACCESS TO CERTAIN DOCUMENTS AND
                INFORMATION
Sec. 303.004.  RULES; PROCEDURES; FORMS
[Sections 303.005-303.050 reserved for expansion]
SUBCHAPTER B. REGISTRATION AND BOND REQUIREMENTS
Sec. 303.051.  RECORD OF ORGANIZATIONS
Sec. 303.052.  FORM AND CONTENT OF REGISTRATION
                STATEMENT
Sec. 303.053.  INITIAL REGISTRATION STATEMENT
Sec. 303.054.  EXPIRATION OF REGISTRATION; RENEWAL
Sec. 303.055.  FILING FEE
Sec. 303.056.  EXEMPTION:  VOLUNTEER
Sec. 303.057.  REGISTRATION DOES NOT IMPLY ENDORSEMENT
Sec. 303.058.  BOOKS AND RECORDS
Sec. 303.059.  BOND
[Sections 303.060-303.100 reserved for expansion]
SUBCHAPTER C. SOLICITATION PRACTICES
Sec. 303.101.  DECEPTIVE ACT OR PRACTICE
Sec. 303.102.  REPRESENTATION OF BENEFIT TO SURVIVORS
Sec. 303.103.  NOTICE OF DISPOSITION OF MONEY
Sec. 303.104.  HOURS OF SOLICITATION
[Sections 303.105-303.150 reserved for expansion]
SUBCHAPTER D. VIOLATION; REMEDIES
Sec. 303.151.  NOTIFICATION OF NONCOMPLIANCE
Sec. 303.152.  VIOLATIONS RELATING TO FILING OF
                DOCUMENTS
Sec. 303.153.  REMEDIES
Sec. 303.154.  VENUE
CHAPTER 303. TELEPHONE SOLICITATION FOR CERTAIN LAW
ENFORCEMENT-RELATED CHARITABLE ORGANIZATIONS
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.303.001.DEFINITIONS. In this chapter:
             (1)  "Commercial telephone solicitor" means a person
whom a law enforcement-related charitable organization retains to
make a telephone solicitation, directly or through another person
under the direction of the person retained. The term does not
include a bona fide officer, director, or employee of, or volunteer
for, a law enforcement-related charitable organization.
             (2)  "Contribution" means a promise to give or a gift of
money or other property, credit, financial assistance, or another
thing of any kind or value. The term does not include:
                   (A)  volunteer services; or
                   (B)  bona fide fees, dues, or assessments a member
pays if membership is not conferred solely as consideration for
making a contribution in response to a telephone solicitation.
             (3)  "Law enforcement-related charitable organization"
means a person who solicits a contribution and is or purports to be
established or operating for a charitable purpose relating to law
enforcement. The term includes a nongovernmental law enforcement
organization or publication and survivors of law enforcement
officers killed in the line of duty.  The term does not include a
governmental law enforcement agency or organization.
             (4)  "Telephone solicitation" means the use of a
telephone to solicit another person to make a charitable
contribution to a law enforcement-related charitable organization.
(V.A.C.S. Art. 9023e, Secs. 2(1), (2), (3), (6).)
       Sec.303.002.SOLICITATION GOVERNED BY CHAPTER. The
telephone solicitation of a contribution from a person in this
state is considered to be engaging in telephone solicitation in
this state regardless of where the solicitation originates.
(V.A.C.S. Art. 9023e, Sec. 1.)
       Sec. 303.003.  PUBLIC ACCESS TO CERTAIN DOCUMENTS AND
INFORMATION. (a)  Except as provided by Subsection (b), a document
required to be filed with the attorney general under this chapter is
public information available to members of the public under Chapter
552, Government Code.
       (b)  A document that identifies the donors to a law
enforcement-related charitable organization is confidential and
not subject to disclosure.  (V.A.C.S. Art. 9023e, Sec. 3(b).)
       Sec.303.004.RULES; PROCEDURES; FORMS. The attorney
general may adopt rules, procedures, and forms necessary to
administer and enforce this chapter. (V.A.C.S. Art. 9023e, Sec.
14.)
[Sections 303.005-303.050 reserved for expansion]
SUBCHAPTER B. REGISTRATION AND BOND REQUIREMENTS
       Sec.303.051.RECORD OF ORGANIZATIONS. The attorney
general shall maintain:
             (1)  a register of law enforcement-related charitable
organizations subject to this chapter; and
             (2)  a registry of law enforcement-related charitable
organizations that submit to the attorney general a completed
registration statement containing the information required by
Section 303.052. (V.A.C.S. Art. 9023e, Secs. 3(a), 4(a) (part).)
       Sec.303.052.FORM AND CONTENT OF REGISTRATION STATEMENT.
A registration statement under Section 303.051(2) must be submitted
on a form the attorney general prescribes or approves and must
contain:
             (1)  for each of the organization's offices, chapters,
local units, branches, and affiliates:
                   (A)  the legal name and each assumed name;
                   (B)  the mailing address and street address; and
                   (C)  each telephone number and facsimile number;
             (2)  the organization's employer identification
number;
             (3)  the name, title, address, and telephone number of:
                   (A)  the organization's executive director or
other chief operating officer; and
                   (B)  each of the organization's officers and
directors;
             (4)  the name of each officer, director, or employee:
                   (A)  whom the organization compensates or who has
custody and control of the organization's money; and
                   (B)  who has been convicted of or pleaded nolo
contendere to:
                         (i)  a felony; or
                         (ii)  a misdemeanor involving fraud or the
theft, misappropriation, misapplication, or misuse of another's
property;
             (5)  for each person listed under Subdivision (4), a
statement of:
                   (A)  the offense; and
                   (B)  the state, court, and date of each conviction
or plea of nolo contendere;
             (6)  if the organization is a corporation, the date and
state of incorporation;
             (7)  if the organization is not a corporation, the type
of organization and date established;
             (8)  the date the organization began transacting
business in this state;
             (9)  the name and address of the organization's
registered agent in this state;
             (10)  a statement of the organization's charitable
purposes;
             (11)  a list of the programs for which funds are
solicited;
             (12)  the day and month on which the organization's
fiscal year ends;
             (13)  a statement of whether the organization:
                   (A)  is eligible to receive tax-deductible
contributions under Section 170, Internal Revenue Code of 1986; and
                   (B)  has applied for or been granted tax-exempt
status by the Internal Revenue Service and, if so:
                         (i)  the Internal Revenue Code of 1986
section on which the application was based;
                         (ii)  the application date;
                         (iii)  the date the exemption was granted or
denied; and
                         (iv)  a statement of whether or when the tax
exemption has ever been denied, revoked, or modified;
             (14)  a statement that includes:
                   (A)  the method of accounting used and the name,
address, and telephone number of each of the organization's
accountants and auditors;
                   (B)  for the preceding 12 months:
                         (i)  the total contributions received;
                         (ii)  the total fund-raising costs, computed
according to generally accepted accounting principles;
                         (iii)  if the organization retained a
commercial telephone solicitor:
                               (a)  the name and address of each
commercial telephone solicitor; and
                               (b)  a written confirmation from each
commercial telephone solicitor that it has complied with all state
and local registration laws; and
                         (iv)  the amount paid to commercial
telephone solicitors; and
                   (C)  a statement that:
                         (i)  the organization has attempted in good
faith to comply with each ordinance of a municipality or each order
of a county in this state regarding telephone solicitation that has
been filed with the attorney general; or
                         (ii)  no ordinance or order described by
Subparagraph (i) applies;
             (15)  if the organization files a federal tax return, a
copy of:
                   (A)  the organization's most recently filed
Internal Revenue Service Form 990 and other federal tax returns;
                   (B)  each supplement, amendment, and attachment
to those returns; and
                   (C)  each request for an extension to file any of
those returns;
             (16)  if the organization does not file a federal tax
return:
                   (A)  a statement of the reason a return is not
filed; and
                   (B)  the organization's most recent financial
statements, including audited financial statements, if any have
been prepared; and
             (17)  a sworn statement verifying that the information
contained in the registration statement and each attachment to the
registration statement is true, correct, and complete to the best
of the affiant's knowledge.  (V.A.C.S. Art. 9023e, Secs. 4(a)
(part), (e).)
       Sec.303.053.INITIAL REGISTRATION STATEMENT. A law
enforcement-related charitable organization shall file the
organization's initial registration statement before the 10th
working day before the date the organization begins telephone
solicitation in this state. (V.A.C.S. Art. 9023e, Sec. 4(b).)
       Sec.303.054.EXPIRATION OF REGISTRATION; RENEWAL. (a)  A
law enforcement-related charitable organization's registration
expires on the 15th day of the fifth month after the last day of the
organization's fiscal year.
       (b)  The organization shall file a renewal registration
statement on the form required under Section 303.052. The renewal
registration statement must include the organization's name and
employer identification number and any changes to information
previously submitted to the attorney general. For an item on which
there is no change from the previous year's registration statement,
"no change" may be indicated. (V.A.C.S. Art. 9023e, Sec. 4(c).)
       Sec.303.055.FILING FEE. (a)  An initial registration
statement must be accompanied by a filing fee not to exceed $50.
       (b)  A renewal registration statement must be accompanied by
a filing fee of $50. (V.A.C.S. Art. 9023e, Sec. 4(d).)
       Sec.303.056.EXEMPTION: VOLUNTEER. A volunteer
authorized to solicit on behalf of a law enforcement-related
charitable organization is not required to register under this
chapter. (V.A.C.S. Art. 9023e, Sec. 4(f).)
       Sec.303.057.REGISTRATION DOES NOT IMPLY ENDORSEMENT. (a)
Registration under this chapter does not imply endorsement by this
state or the attorney general.
       (b)  A law enforcement-related charitable organization may
not state or imply that registration under this chapter is
endorsement by this state or the attorney general. (V.A.C.S. Art.
9023e, Sec. 8.)
       Sec.303.058.BOOKS AND RECORDS. (a)  A law
enforcement-related charitable organization required to file a
registration statement shall maintain books and records of the
organization's activities in this state. The books and records must
be maintained:
             (1)  in a form that enables the organization to
accurately provide the information required by this chapter; and
             (2)  until at least the third anniversary of the end of
the period to which the registration statement relates.
       (b)  On written request of authorized personnel of the
attorney general, the organization shall make the books and records
available for inspection and copying by authorized personnel:
             (1)  at the organization's principal place of business
not later than the 10th working day after the date of the request;
or
             (2)  at another agreed place and time.
       (c)  The authority provided by this section is in addition to
the attorney general's other statutory or common law audit or
investigative authority.  (V.A.C.S. Art. 9023e, Sec. 7.)
       Sec.303.059.BOND. A commercial telephone solicitor shall
post with the secretary of state a surety bond that:
             (1)  is in the amount of $50,000; and
             (2)  is issued by a surety company authorized to
transact business in this state. (V.A.C.S. Art. 9023e, Sec. 5.)
[Sections 303.060-303.100 reserved for expansion]
SUBCHAPTER C. SOLICITATION PRACTICES
       Sec.303.101.DECEPTIVE ACT OR PRACTICE. A person may not
commit an unfair or deceptive act or practice in making a telephone
solicitation for a law enforcement-related charitable
organization. (V.A.C.S. Art. 9023e, Sec. 13(a).)
       Sec.303.102.REPRESENTATION OF BENEFIT TO SURVIVORS. A
person may not represent to a person solicited that a contribution
is to be used to benefit the survivors of a law enforcement officer
killed in the line of duty unless:
             (1)  all of the contributions collected are used to
benefit those survivors; or
             (2)  the person solicited is informed in writing of the
percentage of the contribution that will directly benefit those
survivors. (V.A.C.S. Art. 9023e, Sec. 13(b).)
       Sec.303.103.NOTICE OF DISPOSITION OF MONEY. (a)  If less
than 90 percent of the contributions collected by a law
enforcement-related charitable organization or commercial
telephone solicitor are paid to a law enforcement-related
charitable organization, the commercial telephone solicitor shall
notify each person solicited by telephone, before accepting a
contribution from the person, of:
             (1)  the percentage of the contributions that will be
paid to the organization for which the contributions are being
solicited; and
             (2)  the percentage of the contributions that the
solicitor will retain.
       (b)  Information required to be disclosed under Subsection
(a) shall also be included on any written statement mailed to the
contributor. (V.A.C.S. Art. 9023e, Sec. 12(a).)
       Sec.303.104.HOURS OF SOLICITATION. A law
enforcement-related charitable organization or commercial
telephone solicitor may not make a telephone solicitation call
unless the call is made after 9 a.m. and before 7 p.m., Monday
through Friday.  (V.A.C.S. Art. 9023e, Sec. 12(b).)
[Sections 303.105-303.150 reserved for expansion]
SUBCHAPTER D. VIOLATION; REMEDIES
       Sec.303.151.NOTIFICATION OF NONCOMPLIANCE.  If a law
enforcement-related charitable organization does not file a
document required by this chapter, files an incomplete or
inaccurate document, or otherwise does not comply with this
chapter, the attorney general shall notify the organization of the
organization's noncompliance by first class mail sent to the
organization's last reported address. (V.A.C.S. Art. 9023e, Sec.
6(a).)
       Sec.303.152.VIOLATIONS RELATING TO FILING OF DOCUMENTS.
(a)  A law enforcement-related charitable organization violates
this chapter if the organization:
             (1)  does not file complete documents before the 31st
day after the date a notice under Section 303.151 is mailed; or
             (2)  with actual awareness files materially inaccurate
documents.
       (b)  For purposes of Subsection (a)(2), actual awareness may
be inferred from an objective manifestation that indicates that a
person acted with actual awareness. (V.A.C.S. Art. 9023e, Secs.
2(4), 6(b).)
       Sec.303.153.REMEDIES.  (a)  The attorney general may bring
an action against a person who violates this chapter to:
             (1)  cancel or suspend the person's registration;
             (2)  obtain an injunction to restrain the person from
continuing the violation;
             (3)  restrain the person from transacting business in
this state while violating this chapter;
             (4)  impose a civil penalty of not more than $25,000 for
each violation; or
             (5)  both obtain an injunction and impose a civil
penalty.
       (b)  A person who violates an injunction issued under this
section is liable to this state for a civil penalty of not less than
$100,000.
       (c)  In an action that the attorney general successfully
prosecutes under this chapter, the court may allow the attorney
general to recover civil penalties and the reasonable costs,
attorney's fees, and expenses, including investigative costs,
witness fees, and deposition expenses, incurred in bringing the
action.
       (d)  A remedy authorized by this chapter is in addition to
any other procedure or remedy provided by another statutory law or
common law.  (V.A.C.S. Art. 9023e, Secs. 9, 10 (part).)
       Sec.303.154.VENUE. An action under this chapter must be
brought in:
             (1)  Travis County;
             (2)  the county in which the law enforcement-related
charitable organization has its principal place of business or a
fixed and established place of business at the time the action is
brought; or
             (3)  the county in which solicitation occurred.
(V.A.C.S. Art. 9023e, Sec. 11.)
CHAPTER 304. TELEMARKETING
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 304.001.  SHORT TITLE 
Sec. 304.002.  DEFINITIONS 
Sec. 304.003.  MAKING TELEMARKETING CALL 
Sec. 304.004.  INAPPLICABILITY OF CHAPTER TO CERTAIN
                CALLS 
Sec. 304.005.  LIBERAL CONSTRUCTION AND APPLICATION 
Sec. 304.006.  ATTEMPTED WAIVER VOID 
[Sections 304.007-304.050 reserved for expansion]
SUBCHAPTER B. TEXAS NO-CALL LIST
Sec. 304.051.  MAINTENANCE OF TEXAS NO-CALL LIST 
Sec. 304.052.  TELEMARKETING CALL TO TELEPHONE NUMBER
                ON LIST PROHIBITED 
Sec. 304.053.  EXPIRATION, RENEWAL, AND DELETION OF
                ENTRY 
Sec. 304.054.  FEE 
Sec. 304.055.  PUBLICATION IN TELEPHONE DIRECTORY 
Sec. 304.056.  PLACEMENT OF ENTRIES ON NATIONAL
                DO-NOT-CALL REGISTRY 
Sec. 304.057.  GENERAL RULEMAKING AUTHORITY 
Sec. 304.058.  RULES REGARDING ISOLATED CALLS 
Sec. 304.059.  RULES REGARDING PUBLIC NOTICE 
Sec. 304.060.  RULES REGARDING DISSEMINATION OF LIST 
Sec. 304.061.  EDUCATIONAL PROGRAMS 
Sec. 304.062.  ASSISTANCE OF DEPARTMENT OF INFORMATION
                RESOURCES 
[Sections 304.063-304.100 reserved for expansion]
SUBCHAPTER C. FACSIMILE TRANSMISSIONS
Sec. 304.101.  NOTICE IN FACSIMILE SOLICITATION 
Sec. 304.102.  ACKNOWLEDGMENT REQUIRED; TRANSMISSION
                PROHIBITED 
[Sections 304.103-304.150 reserved for expansion]
SUBCHAPTER D. CALLER IDENTIFICATION
Sec. 304.151.  INTERFERENCE WITH CALLER IDENTIFICATION
                SERVICE OR DEVICE PROHIBITED 
Sec. 304.152.  EXCEPTION: USE OF CERTAIN SERVICE OR
                EQUIPMENT 
[Sections 304.153-304.200 reserved for expansion]
SUBCHAPTER E. REGULATORY REPORTS
Sec. 304.201.  REPORT BY COMMISSION 
Sec. 304.202.  REPORT BY ATTORNEY GENERAL 
[Sections 304.203-304.250 reserved for expansion]
SUBCHAPTER F. ENFORCEMENT
Sec. 304.251.  ENFORCEMENT BY COMMISSION 
Sec. 304.252.  ENFORCEMENT BY ATTORNEY GENERAL 
Sec. 304.253.  ENFORCEMENT BY LICENSING AGENCY 
Sec. 304.254.  DETERMINATION OF AMOUNT OF
                ADMINISTRATIVE PENALTY 
Sec. 304.255.  STAY OF ADMINISTRATIVE PENALTY 
Sec. 304.256.  CONTESTED CASE 
Sec. 304.257.  PRIVATE ACTION: TELEMARKETING CALLS 
Sec. 304.258.  PRIVATE ACTION: FACSIMILE TRANSMISSION 
Sec. 304.259.  VENUE 
CHAPTER 304. TELEMARKETING
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.304.001.SHORT TITLE. This chapter may be cited as the
Texas Telemarketing Disclosure and Privacy Act. (Bus. & Com. Code,
Sec. 44.001.)
       Sec.304.002.DEFINITIONS. In this chapter:
             (1)  "Caller identification service or device" means a
service or device designed to provide the user of the service or
device with the telephone number of an incoming telephone call.
             (2)  "Commission" means the Public Utility Commission
of Texas.
             (3)  "Consumer good or service" means property of any
kind that is normally used for personal, family, or household
purposes. The term does not include a security, as defined by
Section 4, The Securities Act (Article 581-4, Vernon's Texas Civil
Statutes).
             (4)  "Established business relationship" means a
relationship that:
                   (A)  is formed by a voluntary two-way
communication between a person and a consumer, regardless of
whether consideration is exchanged;
                   (B)  pertains to a consumer good or service
offered by the person; and
                   (C)  has not been terminated by either party.
             (5)  "Facsimile recording device" means a device
capable of receiving a facsimile transmission.
             (6)  "Facsimile solicitation" means a telemarketing
call made by a transmission to a facsimile recording device.
             (7)  "State licensee" means a person licensed by a
state agency under a law of this state that requires the person to
obtain a license as a condition of engaging in a profession or
business.
             (8)  "Telemarketer" means a person who makes or causes
to be made a telemarketing call.
             (9)  "Telemarketing call" means an unsolicited
telephone call made to:
                   (A)  solicit a sale of a consumer good or service;
                   (B)  solicit an extension of credit for a consumer
good or service; or
                   (C)  obtain information that may be used to
solicit a sale of a consumer good or service or to extend credit for
the sale.
             (10)  "Telephone call" means a call or other
transmission made to or received at a telephone number, including:
                   (A)  a call made by an automated telephone dialing
system;
                   (B)  a transmission to a facsimile recording
device; and
                   (C)  a call to a mobile telephone number serviced
by a provider of commercial mobile service, as defined by Section
332(d), Communications Act of 1934 (47 U.S.C. Section 151 et seq.),
as amended, Federal Communications Commission rules, or the Omnibus
Budget Reconciliation Act of 1993 (Pub. L. No. 103-66), as amended.  
(Bus. & Com. Code, Secs. 44.002, 44.003(a).)
       Sec.304.003.MAKING TELEMARKETING CALL.  For purposes of
this chapter, a person makes a telemarketing call if the person
effects a telemarketing call on the person's own behalf or on behalf
of another entity. A person makes a telemarketing call on behalf of
another entity if, as a result of the telemarketing call, the other
entity can:
             (1)  become entitled to receive money or other property
of any kind from a sale solicited during the call; or
             (2)  receive information obtained during the call to:
                   (A)  extend or offer to extend to the person
solicited credit for a consumer good or service; or
                   (B)  directly solicit a sale of a consumer good or
service or extend credit for the sale.  (Bus. & Com. Code, Sec.
44.004.)
       Sec. 304.004.  INAPPLICABILITY OF CHAPTER TO CERTAIN
CALLS.  This chapter does not apply to a call made:
             (1)  by a consumer:
                   (A)  as the result of a solicitation by a seller or
telemarketer; or
                   (B)  in response to general media advertising by a
direct mail solicitation that clearly, conspicuously, and
truthfully makes all disclosures required by federal or state law;
             (2)  in connection with:
                   (A)  an established business relationship; or
                   (B)  a business relationship that has been
terminated, if the call is made before the later of:
                         (i)  the publication date of the first Texas
no-call list in which the consumer's telephone number appears; or
                         (ii)  the first anniversary of the date of
termination;
             (3)  between a telemarketer and a business, other than
by a facsimile solicitation, unless the business has informed the
telemarketer that the business does not wish to receive a
telemarketing call from the telemarketer;
             (4)  to collect a debt; or
             (5)  by a state licensee if:
                   (A)  the call is not made by an automated
telephone dialing system;
                   (B)  the solicited transaction is not completed
until a face-to-face sales presentation by the seller occurs and
the consumer is not required to pay or authorize payment until after
the presentation; and
                   (C)  the consumer has not informed the
telemarketer that the consumer does not wish to receive a
telemarketing call from the telemarketer. (Bus. & Com. Code, Sec.
44.003(b).)
       Sec.304.005.LIBERAL CONSTRUCTION AND APPLICATION.  This
chapter shall be liberally construed and applied to promote its
underlying purpose to protect the public against false, misleading,
abusive, or deceptive practices in the telemarketing business.  
(Bus. & Com. Code, Sec. 44.005.)
       Sec.304.006.ATTEMPTED WAIVER VOID.  An attempted waiver
of a provision of this chapter is void.  (Bus. & Com. Code, Sec.
44.006.)
[Sections 304.007-304.050 reserved for expansion]
SUBCHAPTER B. TEXAS NO-CALL LIST
       Sec.304.051.MAINTENANCE OF TEXAS NO-CALL LIST.  (a)  The
commission shall provide for the operation of a database to compile
a list of names, zip codes, and telephone numbers of consumers in
this state who object to receiving telemarketing calls or other
unsolicited telephone calls.
       (b)  The Texas no-call list is a combined list consisting of
the name and telephone numbers of:
             (1)  each consumer in this state who has requested to be
on that list; and
             (2)  each person in the portion of the national
do-not-call registry maintained by the United States government
that relates to this state.
       (c)  The commission shall:
             (1)  make available an Internet website at which a
person may request that a telephone number be placed on the Texas
no-call list; and
             (2)  provide a toll-free telephone number and mailing
address that a person may call or write to obtain a copy of a form to
request placement of a telephone number on the Texas no-call list.
       (d)  The Texas no-call list shall be updated and published on
January 1, April 1, July 1, and October 1 of each year.
       (e)  The commission may contract with a private vendor to
maintain the Texas no-call list if the vendor has maintained a
no-call list database containing the names and telephone numbers of
consumers who have previously requested to be added to a no-call
list.  A contract under this subsection must require the vendor to
publish the Texas portion of the national no-call list in an
electronic format for any telemarketer who agrees to use the Texas
no-call list only to update the telemarketer's no-call list to
include those persons with whom the telemarketer does not have an
established business relationship. (Bus. & Com. Code, Secs.
44.101(a), (b), (c) (part).)
       Sec. 304.052.  TELEMARKETING CALL TO TELEPHONE NUMBER ON
LIST PROHIBITED.  A telemarketer may not make a telemarketing call
to a telephone number published on the Texas no-call list more than
60 days after the date the telephone number appears on the current
list. (Bus. & Com. Code, Sec. 44.102(a).)
       Sec.304.053.EXPIRATION, RENEWAL, AND DELETION OF ENTRY.
(a)  An entry on the Texas no-call list expires on the third
anniversary of the date the entry is first published on the list.
An entry may be renewed for successive three-year periods.
       (b)  The telephone number of a consumer on the Texas no-call
list may be deleted from the list if:
             (1)  the consumer makes a written request; or
             (2)  the telephone number of the consumer is changed.  
(Bus. & Com. Code, Sec. 44.101(c) (part).)
       Sec.304.054.FEE. (a)  Except as provided by Subsection
(b), the commission may charge a person a reasonable amount not to
exceed $3 for a request to place a telephone number on the Texas
no-call list or to renew an entry on the list.
       (b)  The commission shall provide a method for placement or
renewal of an entry by use of the Internet at no charge. (Bus. &
Com. Code, Sec. 44.101(c) (part).)
       Sec.304.055.PUBLICATION IN TELEPHONE DIRECTORY. A
private for-profit publisher of a residential telephone directory
that is distributed to the public at minimal or no cost shall
include in the directory a prominently displayed Internet website
address, toll-free number, and mailing address established by the
commission through which a person may request placement of a
telephone number on the Texas no-call list or order a copy of the
form to make that request.  (Bus. & Com. Code, Sec. 44.101(c)
(part).)
       Sec. 304.056.  PLACEMENT OF ENTRIES ON NATIONAL DO-NOT-CALL
REGISTRY.  The commission or a person the commission designates
may:
             (1)  provide information on the Texas no-call list to
the administrator of the national do-not-call registry; and
             (2)  allow the names and telephone numbers on the Texas
no-call list to be placed on the national do-not-call registry.  
(Bus.& Com. Code, Sec. 44.101(d).)
       Sec.304.057.GENERAL RULEMAKING AUTHORITY. The commission
may adopt rules to administer this subchapter and Subchapter F,
other than Sections 304.254, 304.255, 304.256, and 304.258, as that
subchapter relates to the Texas no-call list.  (Bus. & Com. Code,
Sec. 44.103(a) (part).)
       Sec.304.058.RULES REGARDING ISOLATED CALLS. The
commission shall adopt rules providing that a telemarketing call
made to a telephone number on the Texas no-call list is not a
violation of Section 304.052 if the telemarketing call:
             (1)  is an isolated occurrence; and
             (2)  is made by a person who has in place adequate
procedures to comply with this subchapter. (Bus. & Com. Code, Sec.
44.103(a) (part).)
       Sec.304.059.RULES REGARDING PUBLIC NOTICE. The
commission shall adopt rules requiring each local exchange
telephone company and each provider of commercial mobile service,
as described by Section 304.002(10)(C), that provides commercial
mobile service in this state to inform its customers of the
requirements of this subchapter and Sections 304.251, 304.252,
304.253, 304.257, and 304.259, as those sections relate to the
Texas no-call list, through:
             (1)  annual inserts in billing statements mailed to
customers;
             (2)  notification:
                   (A)  included in a customer's electronic bill;
                   (B)  printed on a customer's paper bill;
                   (C)  sent free of charge by messaging service to a
customer's mobile telephone number; or
                   (D)  conspicuously published in the consumer
information pages of local telephone directories; or
             (3)  other appropriate means of notice. (Bus. & Com.
Code, Sec. 44.103(a) (part).)
       Sec.304.060.RULES REGARDING DISSEMINATION OF LIST. The
commission shall adopt rules providing for:
             (1)  the distribution of the Texas no-call list in
formats, including electronic formats, commonly used by persons
making telemarketing calls; and
             (2)  a fee for each distribution, not to exceed $75.
(Bus. & Com. Code, Sec. 44.103(a) (part).)
       Sec.304.061.EDUCATIONAL PROGRAMS.  In addition to
requiring the notice under Section 304.059, the commission may
conduct educational programs designed to inform members of the
public of their rights and telemarketers of their obligations under
this subchapter and Sections 304.251, 304.252, 304.253, 304.257,
and 304.259, as those sections relate to the Texas no-call list.  
(Bus. & Com. Code, Sec. 44.103(b).)
       Sec. 304.062.  ASSISTANCE OF DEPARTMENT OF INFORMATION
RESOURCES.  On request of the commission, the Department of
Information Resources shall assist the commission in administering
this subchapter. (Bus. & Com. Code, Sec. 44.104.)
[Sections 304.063-304.100 reserved for expansion]
SUBCHAPTER C. FACSIMILE TRANSMISSIONS
       Sec.304.101.NOTICE IN FACSIMILE SOLICITATION.  In
addition to complying with the technical and procedural standards
established by federal statutes or regulations regarding telephone
facsimile machines and transmissions, a person in this state who
makes or causes to be made a facsimile solicitation shall include in
the transmitted document or on a cover page to the document a
statement, in at least 12-point type, containing:
             (1)  the complete name of the person making the
facsimile solicitation and street address of the person's place of
business; and
             (2)  a toll-free or local exchange accessible telephone
number of the person that:
                   (A)  is answered in the order in which calls are
received by an individual capable of responding to inquiries from
recipients of facsimile solicitations at all times after 9 a.m. and
before 5 p.m. on each day except Saturday and Sunday; or
                   (B)  automatically and immediately deletes the
specified telephone number of the recipient.  (Bus. & Com. Code,
Sec. 44.151.)
       Sec. 304.102.  ACKNOWLEDGMENT REQUIRED; TRANSMISSION
PROHIBITED.  On receiving oral or written notice from the recipient
of a facsimile solicitation not to send any further facsimile
transmissions to one or more specified telephone numbers, the
person making the solicitation:
             (1)  shall within 24 hours after receiving the notice
send the recipient of the solicitation written acknowledgment of
the receipt; and
             (2)  other than a single transmission to comply with
Subdivision (1), may not make or cause to be made a transmission to
a telephone number specified by the recipient.  (Bus. & Com. Code,
Sec. 44.152.)
[Sections 304.103-304.150 reserved for expansion]
SUBCHAPTER D. CALLER IDENTIFICATION
       Sec. 304.151.  INTERFERENCE WITH CALLER IDENTIFICATION
SERVICE OR DEVICE PROHIBITED.  (a)  In making a telemarketing
call, a telemarketer may not block the identity of the telephone
number from which the call is made to evade a device designed to
identify a telephone caller.
       (b)  A telemarketer may not:
             (1)  interfere with or circumvent the capability of a
caller identification service or device to access or provide to the
recipient of the telemarketing call any information regarding the
call that the service or device is capable of providing; or
             (2)  fail to provide caller identification information
in a manner that is accessible by a caller identification service or
device, if the telemarketer is capable of providing the information
in that manner. (Bus. & Com. Code, Secs. 44.051(a), (b).)
       Sec. 304.152.  EXCEPTION: USE OF CERTAIN SERVICE OR
EQUIPMENT.  For purposes of Section 304.151, use of a
telecommunications service or telecommunications equipment that is
incapable of transmitting caller identification information does
not of itself constitute interference with or circumvention of the
capability of a caller identification service or device to access
or provide the information.  (Bus. & Com. Code, Sec. 44.051(c).)
[Sections 304.153-304.200 reserved for expansion]
SUBCHAPTER E. REGULATORY REPORTS
       Sec.304.201.REPORT BY COMMISSION.  (a)  Before December
31 of each even-numbered year, the commission shall submit a report
to the lieutenant governor and the speaker of the house of
representatives.
       (b)  The report must contain for the two-year period ending
August 31 of the year of the report:
             (1)  a statement of:
                   (A)  the number of telephone numbers included on
the Texas no-call list;
                   (B)  the number of no-call lists distributed; and
                   (C)  the amount collected for requests to place
telephone numbers and renew entries on the list and for
distribution of the list;
             (2)  a list of complaints the commission received
concerning activities regulated by this chapter, itemized by type;
             (3)  a summary of any enforcement efforts made by the
commission; and
             (4)  the commission's recommendations for any changes
to this chapter.  (Bus. & Com. Code, Sec. 44.201.)
       Sec.304.202.REPORT BY ATTORNEY GENERAL.  (a)  Before
December 31 of each even-numbered year, the attorney general shall
submit a report to the lieutenant governor and the speaker of the
house of representatives.
       (b)  The report must contain for the two-year period ending
August 31 of the year of the report:
             (1)  a list of complaints the attorney general received
concerning activities regulated by this chapter, itemized by type;
             (2)  a summary of any enforcement efforts made by the
attorney general; and
             (3)  the attorney general's recommendations for any
changes to this chapter. (Bus. & Com. Code, Sec. 44.202.)
[Sections 304.203-304.250 reserved for expansion]
SUBCHAPTER F. ENFORCEMENT
       Sec.304.251.ENFORCEMENT BY COMMISSION. (a)  Except as
provided by Section 304.253, the commission shall receive and
investigate complaints concerning violations of Subchapters B, C,
and D and may impose an administrative penalty not to exceed $1,000
for each violation.
       (b)  Notwithstanding Section 304.252, if a complaint alleges
that the person violating Subchapter B, C, or D is a
telecommunications provider, as defined by Section 51.002,
Utilities Code, the commission has exclusive jurisdiction over the
violation alleged in the complaint.  (Bus. & Com. Code, Secs.
44.052(a), 44.102(b) (part), 44.153(a) (part).)
       Sec.304.252.ENFORCEMENT BY ATTORNEY GENERAL. (a)  Except
as provided by Section 304.253, the attorney general may
investigate violations of Subchapters B, C, and D and file civil
enforcement actions seeking:
             (1)  a civil penalty in an amount not to exceed $1,000
for each violation, except as provided by Subsection (b);
             (2)  injunctive relief; and
             (3)  attorney's fees.
       (b)  If the court finds the defendant wilfully or knowingly
violated Subchapter B, C, or D, the court may increase the amount of
the civil penalty to an amount not to exceed $3,000 for each
violation.
       (c)  A violation of Subchapter B, C, or D is subject to
enforcement action by the attorney general's consumer protection
division under Sections 17.47, 17.58, 17.60, and 17.61.  (Bus. &
Com. Code, Secs. 44.052(b), 44.102(c), 44.153(b).)
       Sec.304.253.ENFORCEMENT BY LICENSING AGENCY.  (a)  A state
agency that issues a license to a state licensee shall:
             (1)  receive and investigate complaints concerning
violations of Subchapters B and C by the state licensee; and
             (2)  may receive and investigate complaints concerning
violations of Subchapter D by the state licensee.
       (b)  The state agency may:
             (1)  impose an administrative penalty not to exceed
$1,000 for each violation;
             (2)  order restitution for any monetary damages of the
complainant in the case of a violation of Subchapter B or D; and
             (3)  suspend or revoke the state licensee's license, if
the agency finds that the licensee wilfully or knowingly violated
Subchapter B, C, or D.  (Bus. & Com. Code, Secs. 44.052(c),
44.102(d), 44.153(c).)
       Sec. 304.254.  DETERMINATION OF AMOUNT OF ADMINISTRATIVE
PENALTY.  The amount of an administrative penalty imposed under
this subchapter must be based on:
             (1)  the seriousness of the violation, including the
nature, circumstances, extent, and gravity of the violation;
             (2)  any history of previous violations;
             (3)  the amount necessary to deter a future violation;
             (4)  any effort to correct the violation; and
             (5)  any other matter that justice may require.  (Bus. &
Com. Code, Sec. 44.251.)
       Sec.304.255.STAY OF ADMINISTRATIVE PENALTY.  (a)  The
enforcement of an administrative penalty imposed under this
subchapter may be stayed during the time the order is under judicial
review if the person on whom the penalty is imposed pays the penalty
to the clerk of the court or files a supersedeas bond with the court
in the amount of the penalty.
       (b)  A person who cannot afford to pay the penalty or file the
bond may stay the enforcement by filing an affidavit in the manner
required by the Texas Rules of Civil Procedure for a party who
cannot afford to file security for costs, subject to the right to
contest the affidavit as provided by those rules.  (Bus. & Com.
Code, Sec. 44.252.)
       Sec.304.256.CONTESTED CASE.  A proceeding to impose an
administrative penalty under this subchapter is a contested case
under Chapter 2001, Government Code.  (Bus. & Com. Code, Sec.
44.253.)
       Sec.304.257.PRIVATE ACTION: TELEMARKETING CALLS. (a)  A
consumer on the Texas no-call list is presumed to be adversely
affected by a telemarketer who calls the consumer more than once.  
The consumer may bring a civil action based on the second or a
subsequent violation of Subchapter B if:
             (1)  the consumer has notified the telemarketer of the
alleged violation;
             (2)  not later than the 30th day after the date of the
call, the consumer files with the commission, the attorney general,
or a state agency that licenses the person making the call a
verified complaint stating the relevant facts surrounding the
violation; and
             (3)  the commission, attorney general, or state agency
receiving the complaint does not initiate an administrative action
or a civil enforcement action, as appropriate, against the
telemarketer named in the complaint before the 121st day after the
date the complaint is filed.
       (b)  If the consumer brings an action based on a violation of
Section 304.052 and the court finds that the defendant wilfully or
knowingly violated that section, the court may award damages in an
amount not to exceed $500 for each violation.
       (c)  Section 304.251(b) does not affect the right of a
consumer to bring an action under Subsection (a). (Bus. & Com.
Code, Secs. 44.102(b) (part), (f), (g).)
       Sec.304.258.PRIVATE ACTION: FACSIMILE TRANSMISSION. (a)  
A person may bring a civil action based on a violation of Subchapter
C:
             (1)  for damages in an amount equal to the greater of:
                   (A)  the person's actual monetary loss from the
violation; or
                   (B)  $500 for each violation;
             (2)  to enjoin the violation; or
             (3)  for both damages and an injunction.
       (b)  If the court finds that the defendant wilfully or
knowingly violated Subchapter C, the court may increase the amount
of the damages awarded to an amount equal to not more than three
times the amount available under Subsection (a)(1).
       (c)  Section 304.251(b) does not affect the right of a
consumer to bring an action under Subsection (a).  (Bus. & Com.
Code, Secs. 44.153(a) (part), (e), (f).)
       Sec.304.259.VENUE.  (a)  Venue for an action based on a
violation of Subchapter B or C is in:
             (1)  the county in which the telemarketing call was
made or received; or
             (2)  Travis County, if the action is brought by the
commission, the attorney general, or a state agency.
       (b)  Venue for an action under Subchapter D is in Travis
County.  (Bus. & Com. Code, Secs. 44.052(d), 44.102(e), 44.153(d).)
CHAPTER 305.  TELEPHONIC COMMUNICATIONS MADE FOR
PURPOSE OF SOLICITATION
SUBCHAPTER A.  PROHIBITED COMMUNICATIONS MADE FOR
PURPOSE OF SOLICITATION
Sec. 305.001.  PROHIBITED TELEPHONE CALLS
Sec. 305.002.  PROHIBITED FACSIMILE TRANSMISSIONS:
                CHARGE TO RECIPIENT
Sec. 305.003.  PROHIBITED FACSIMILE TRANSMISSIONS:
                HOURS OF TRANSMISSION
[Sections 305.004-305.050 reserved for expansion]
SUBCHAPTER B.  ENFORCEMENT
Sec. 305.051.  INVESTIGATION
Sec. 305.052.  CRIMINAL PENALTY
Sec. 305.053.  CIVIL ACTION
CHAPTER 305.  TELEPHONIC COMMUNICATIONS MADE FOR
PURPOSE OF SOLICITATION
SUBCHAPTER A.  PROHIBITED COMMUNICATIONS MADE FOR
PURPOSE OF SOLICITATION
       Sec.305.001.PROHIBITED TELEPHONE CALLS.  A person may not
make a telephone call or use an automatic dial announcing device to
make a telephone call for the purpose of making a sale if:
             (1)  the person making the call or using the device
knows or should have known that the called number is a mobile
telephone for which the called person will be charged for that
specific call; and
             (2)  the called person has not consented to the making
of such a call to the person calling or using the device or to the
business enterprise for which the person is calling or using the
device.  (Bus. & Com. Code, Sec. 35.47(a).)
       Sec. 305.002.  PROHIBITED FACSIMILE TRANSMISSIONS:  CHARGE
TO RECIPIENT.  A person may not make or cause to be made a
transmission for the purpose of a solicitation or sale to a
facsimile recording device or other telecopier for which the person
receiving the transmission will be charged for the transmission,
unless the person receiving the transmission has, before the
transmission, consented to the making of the transmission.  (Bus. &
Com. Code, Sec. 35.47(b).)
       Sec. 305.003.  PROHIBITED FACSIMILE TRANSMISSIONS:  HOURS OF
TRANSMISSION.  A person may not make or cause to be made a
transmission for the purpose of a solicitation or sale to a
facsimile recording device after 11 p.m. and before 7 a.m.  (Bus. &
Com. Code, Sec. 35.47(c).)
[Sections 305.004-305.050 reserved for expansion]
SUBCHAPTER B.  ENFORCEMENT
       Sec.305.051.INVESTIGATION. (a) On complaint of a called
person that a person has violated Section 305.001, 305.002, or
305.003, the county or district attorney of the county in which the
called person resides shall investigate the complaint and file
charges if appropriate.
       (b)  A telephone company serving the caller or called person
is not responsible for investigating a complaint or keeping records
relating to this chapter. (Bus. & Com. Code, Sec. 35.47(d).)
       Sec.305.052.CRIMINAL PENALTY. (a) A person who violates
Section 305.001, 305.002, or 305.003 commits an offense.
       (b)  An offense under this section is a Class C misdemeanor.
(Bus. & Com. Code, Sec. 35.47(e).)
       Sec.305.053.CIVIL ACTION. (a) A person who receives a
communication that violates 47 U.S.C. Section 227, a regulation
adopted under that provision, or Subchapter A may bring an action in
this state against the person who originates the communication for:
             (1)  an injunction;
             (2)  damages in the amount provided by this section; or
             (3)  both an injunction and damages.
       (b)  A plaintiff who prevails in an action for damages under
this section is entitled to the greater of:
             (1)  $500 for each violation; or
             (2)  the plaintiff's actual damages.
       (c)  If the court finds that the defendant committed the
violation knowingly or intentionally, the court may increase the
amount of the award of damages under Subsection (b) to not more than
the greater of:
             (1)  $1,500 for each violation; or
             (2)  three times the plaintiff's actual damages.  (Bus. &
Com. Code, Sec. 35.47(f).)
[Chapters 306-320 reserved for expansion]
SUBTITLE B.  ELECTRONIC COMMUNICATIONS
CHAPTER 321. REGULATION OF CERTAIN ELECTRONIC MAIL
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 321.001.  DEFINITIONS 
[Sections 321.002-321.050 reserved for expansion]
SUBCHAPTER B.  PROHIBITED AND REQUIRED CONDUCT
Sec. 321.051.  TRANSMISSION OF CERTAIN COMMERCIAL
                ELECTRONIC MAIL MESSAGES PROHIBITED 
Sec. 321.052.  REQUIREMENT FOR TRANSMISSION OF
                UNSOLICITED COMMERCIAL ELECTRONIC MAIL
                MESSAGES 
Sec. 321.053.  SELLING OR PROVIDING CERTAIN ELECTRONIC
                MAIL ADDRESSES PROHIBITED 
[Sections 321.054-321.100 reserved for expansion]
SUBCHAPTER C. ENFORCEMENT
Sec. 321.101.  TRANSMISSION OF MESSAGE CONTAINING
                OBSCENE MATERIAL OR MATERIAL DEPICTING
                SEXUAL CONDUCT; CRIMINAL PENALTY 
Sec. 321.102.  VIOLATION OF CHAPTER: GENERAL CIVIL
                PENALTY AND INJUNCTIVE RELIEF 
Sec. 321.103.  VIOLATION OF CHAPTER: DECEPTIVE TRADE
                PRACTICE 
Sec. 321.104.  VIOLATION OF CHAPTER: CIVIL ACTION FOR
                DAMAGES 
Sec. 321.105.  ALTERNATIVE RECOVERY FOR PERSONS OTHER
                THAN ELECTRONIC MAIL SERVICE PROVIDERS 
Sec. 321.106.  ALTERNATIVE RECOVERY FOR ELECTRONIC MAIL
                SERVICE PROVIDERS 
Sec. 321.107.  REQUIRED NOTICE OF CIVIL ACTION TO
                ATTORNEY GENERAL; CIVIL PENALTY 
Sec. 321.108.  INTERVENTION IN CIVIL ACTION BY ATTORNEY
                GENERAL 
Sec. 321.109.  CERTIFICATION AS CLASS ACTION PROHIBITED 
Sec. 321.110.  PROTECTION OF SECRECY OR SECURITY 
Sec. 321.111.  IMMUNITY FROM LIABILITY: COMMERCIAL
                ELECTRONIC MAIL MESSAGE TRANSMITTED BY
                ERROR OR ACCIDENT 
Sec. 321.112.  IMMUNITY FROM LIABILITY:
                TELECOMMUNICATIONS UTILITIES AND
                ELECTRONIC MAIL SERVICE PROVIDERS 
Sec. 321.113.  QUALIFIED IMMUNITY FROM LIABILITY OF
                SENDERS 
Sec. 321.114.  AUTHORITY TO BLOCK CERTAIN COMMERCIAL
                ELECTRONIC MAIL MESSAGES; QUALIFIED
                IMMUNITY 
CHAPTER 321. REGULATION OF CERTAIN ELECTRONIC MAIL
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.321.001.DEFINITIONS. In this chapter:
             (1)  "Commercial electronic mail message" means an
electronic mail message that advertises, offers for sale or lease,
or promotes any goods, services, business opportunity, property, or
other article, commodity, or thing of value.
             (2)  "Electronic mail" means a message, file, or other
information that is transmitted through a local, regional, or
global computer network, regardless of whether the message, file,
or information is viewed, stored for retrieval at a later time,
printed, or filtered by a computer program that is designed or
intended to filter or screen the message, file, or information.
             (3)  "Electronic mail service provider" means a person
who:
                   (A)  is authorized to transact business in this
state;
                   (B)  is an intermediary in transmitting or
receiving electronic mail; and
                   (C)  provides to an end user of an electronic mail
service the ability to transmit or receive electronic mail.
             (4)  "Established business relationship" means a
relationship that:
                   (A)  is formed by a voluntary two-way
communication between a person and another person, regardless of
whether consideration is exchanged;
                   (B)  pertains to a product or service offered by
one of the persons; and
                   (C)  has not been terminated by either person.
             (5)  "Obscene" has the meaning assigned by Section
43.21, Penal Code.
             (6)  "Sender" means a person who initiates an
electronic mail message.
             (7)  "Sexual conduct" has the meaning assigned by
Section 43.25, Penal Code.
             (8)  "Unsolicited commercial electronic mail message"
means a commercial electronic mail message transmitted without the
consent of the recipient by a person with whom the recipient does
not have an established business relationship. The term does not
include electronic mail transmitted by an organization using
electronic mail to communicate exclusively with members,
employees, or contractors of the organization. (Bus. & Com. Code,
Secs. 46.001(1), (2), (3), (4), (6), (7), (8), (9).)
[Sections 321.002-321.050 reserved for expansion]
SUBCHAPTER B.  PROHIBITED AND REQUIRED CONDUCT
       Sec. 321.051.  TRANSMISSION OF CERTAIN COMMERCIAL
ELECTRONIC MAIL MESSAGES PROHIBITED. (a) In this section,
"Internet domain name" means a globally unique, hierarchical
reference to an Internet host or service that is:
             (1)  assigned through a centralized Internet naming
authority; and
             (2)  composed of a series of character strings
separated by periods, with the right-most string specifying the top
of the hierarchy.
       (b)  A person may not intentionally transmit a commercial
electronic mail message that:
             (1)  is an unsolicited commercial electronic mail
message and falsifies the electronic mail transmission or routing
information;
             (2)  contains false, deceptive, or misleading
information in the subject line; or
             (3)  uses another person's Internet domain name without
the other person's consent.  (Bus. & Com. Code, Secs. 46.001(5),
46.002.)
       Sec. 321.052.  REQUIREMENT FOR TRANSMISSION OF UNSOLICITED
COMMERCIAL ELECTRONIC MAIL MESSAGES. (a)  A person may not
intentionally take an action to transmit an unsolicited commercial
electronic mail message unless:
             (1)  "ADV:" appears first in the subject line of the
message or, if the message contains obscene material or material
depicting sexual conduct, "ADV: ADULT ADVERTISEMENT" appears first
in the subject line; and
             (2)  the sender or a person acting on behalf of the
sender provides a functioning return electronic mail address to
which a recipient of the message may, at no cost to the recipient,
send a reply requesting the removal of the recipient's electronic
mail address from the sender's electronic mail list.
       (b)  A sender shall remove a person's electronic mail address
from the sender's electronic mail list not later than the third day
after the date the sender receives a request for removal of that
address under Subsection (a)(2).  (Bus. & Com. Code, Sec. 46.003.)
       Sec. 321.053.  SELLING OR PROVIDING CERTAIN ELECTRONIC MAIL
ADDRESSES PROHIBITED. A sender or a person acting on behalf of a
sender may not sell or otherwise provide to another the electronic
mail address of a person who requests the removal of that address
from the sender's electronic mail list as provided by Sec