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A BILL TO BE ENTITLED
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AN ACT
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relating to the franchise arrangements excluded from the Business |
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Opportunity Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (b), Section 51.003, Business & |
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Commerce Code, as effective April 1, 2009, is amended to read as |
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follows: |
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(b) In this chapter, "business opportunity" does not |
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include: |
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(1) the sale or lease of an established and ongoing |
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business or enterprise that has actively conducted business before |
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the sale or lease, whether composed of one or more than one |
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component business or enterprise, if the sale or lease represents |
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an isolated transaction or series of transactions involving a bona |
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fide change of ownership or control of the business or enterprise or |
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liquidation of the business or enterprise; |
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(2) a sale by a retailer of goods or services under a |
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contract or other agreement to sell the inventory of one or more |
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ongoing leased departments to a purchaser who is granted the right |
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to sell the goods or services within or adjoining a retail business |
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establishment as a department or division of the retail business |
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establishment; |
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(3) a transaction that is: |
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(A) regulated by the Texas Department of |
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Licensing and Regulation, the Texas Department of Insurance, the |
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Texas Real Estate Commission, or the director of the Motor Vehicle |
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Division of the Texas Department of Transportation; and |
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(B) engaged in by a person licensed by one of |
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those agencies; |
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(4) a real estate syndication; |
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(5) a sale or lease to a business enterprise that also |
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sells or leases products, equipment, or supplies or performs |
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services: |
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(A) that are not supplied by the seller; and |
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(B) that the purchaser does not use with the |
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seller's products, equipment, supplies, or services; |
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(6) the offer or sale of a franchise as described by |
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the Petroleum Marketing Practices Act (15 U.S.C. Section 2801 et |
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seq.) and its subsequent amendments; |
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(7) the offer or sale of a business opportunity if the |
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seller: |
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(A) has a net worth of $25 million or more |
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according to the seller's audited balance sheet as of a date not |
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earlier than the 13th month before the date of the transaction; or |
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(B) is at least 80 percent owned by another |
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person who: |
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(i) in writing unconditionally guarantees |
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performance by the person offering the business opportunity plan; |
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and |
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(ii) has a net worth of more than $25 |
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million according to the person's most recent audited balance sheet |
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as of a date not earlier than the 13th month before the date of the |
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transaction; or |
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(8) an arrangement defined as a franchise by 16 C.F.R. |
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Part 436 [Section 436.2(a)] and its subsequent amendments if: |
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(A) the franchisor complies in all material |
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respects in this state with 16 C.F.R. Part 436 and each order or |
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other action of the Federal Trade Commission; and |
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(B) before offering for sale or selling a |
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franchise in this state, a person files with the secretary of state |
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a notice containing: |
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(i) the name of the franchisor; |
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(ii) the name under which the franchisor |
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intends to transact business; and |
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(iii) the franchisor's principal business |
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address. |
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SECTION 2. This Act takes effect September 1, 2009. |
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* * * * * |