BILL ANALYSIS

 

 

Senate Research Center                                                                                                      S.B. 1701

81R8435 JE-F                                                                                                                    By: Fraser

                                                                                                                        Business & Commerce

                                                                                                                                              4/4/2009

                                                                                                                                              As Filed

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Currently, Section 51.003 (Definition of Business Opportunity), Business & Commerce Code, defines "business opportunity."  Section 51.003(b) (relating to what the definition of "business opportunity" does not include) creates an exception for that definition. One such exception is a franchise. Subsection (b)(8) (relating to the definition of "business opportunity" not including an arrangement defined as a franchise under certain sections) refers to C.F.R. Section 436.2(a) for the definition of "franchise."

 

As proposed,  S.B. 1701 provides that the definition of "business opportunity" does not include an arrangement defined as a franchise by 16 C.F.R. Part 436, rather than 16 C.F.R. Section 436.2(a), and its subsequent amendments under certain circumstances.

 

RULEMAKING AUTHORITY

 

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

 

SECTION BY SECTION ANALYSIS

 

SECTION 1.  Amends Section 51.003(b), Business & Commerce Code, as effective April 1, 2009, to redefine "business opportunity," to exclude an arrangement defined as a franchise by 16 C.F.R. Part 436, rather than 16 C.F.R. Section 436.2(a), and its subsequent amendments under certain circumstances.

 

 

SECTION 2.  Effective date: September 1, 2009.