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A BILL TO BE ENTITLED
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AN ACT
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relating to a deceptive trade practice related to the use of certain |
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words to imply that a person who is not an attorney is authorized to |
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practice law and the prosecution of a cause of action arising from |
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that practice. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 17.46(b), Business & Commerce Code, is |
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amended to read as follows: |
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(b) Except as provided in Subsection (d) of this section, |
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the term "false, misleading, or deceptive acts or practices" |
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includes, but is not limited to, the following acts: |
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(1) passing off goods or services as those of another; |
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(2) causing confusion or misunderstanding as to the |
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source, sponsorship, approval, or certification of goods or |
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services; |
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(3) causing confusion or misunderstanding as to |
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affiliation, connection, or association with, or certification by, |
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another; |
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(4) using deceptive representations or designations |
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of geographic origin in connection with goods or services; |
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(5) representing that goods or services have |
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sponsorship, approval, characteristics, ingredients, uses, |
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benefits, or quantities which they do not have or that a person has |
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a sponsorship, approval, status, affiliation, or connection which |
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the person [he] does not; |
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(6) representing that goods are original or new if |
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they are deteriorated, reconditioned, reclaimed, used, or |
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secondhand; |
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(7) representing that goods or services are of a |
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particular standard, quality, or grade, or that goods are of a |
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particular style or model, if they are of another; |
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(8) disparaging the goods, services, or business of |
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another by false or misleading representation of facts; |
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(9) advertising goods or services with intent not to |
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sell them as advertised; |
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(10) advertising goods or services with intent not to |
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supply a reasonable expectable public demand, unless the |
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advertisements disclosed a limitation of quantity; |
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(11) making false or misleading statements of fact |
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concerning the reasons for, existence of, or amount of price |
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reductions; |
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(12) representing that an agreement confers or |
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involves rights, remedies, or obligations which it does not have or |
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involve, or which are prohibited by law; |
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(13) knowingly making false or misleading statements |
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of fact concerning the need for parts, replacement, or repair |
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service; |
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(14) misrepresenting the authority of a salesman, |
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representative or agent to negotiate the final terms of a consumer |
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transaction; |
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(15) basing a charge for the repair of any item in |
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whole or in part on a guaranty or warranty instead of on the value of |
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the actual repairs made or work to be performed on the item without |
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stating separately the charges for the work and the charge for the |
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warranty or guaranty, if any; |
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(16) disconnecting, turning back, or resetting the |
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odometer of any motor vehicle so as to reduce the number of miles |
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indicated on the odometer gauge; |
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(17) advertising of any sale by fraudulently |
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representing that a person is going out of business; |
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(18) advertising, selling, or distributing a card |
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which purports to be a prescription drug identification card issued |
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under Section 4151.152, Insurance Code, in accordance with rules |
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adopted by the commissioner of insurance, which offers a discount |
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on the purchase of health care goods or services from a third party |
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provider, and which is not evidence of insurance coverage, unless: |
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(A) the discount is authorized under an agreement |
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between the seller of the card and the provider of those goods and |
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services or the discount or card is offered to members of the |
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seller; |
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(B) the seller does not represent that the card |
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provides insurance coverage of any kind; and |
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(C) the discount is not false, misleading, or |
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deceptive; |
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(19) using or employing a chain referral sales plan in |
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connection with the sale or offer to sell of goods, merchandise, or |
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anything of value, which uses the sales technique, plan, |
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arrangement, or agreement in which the buyer or prospective buyer |
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is offered the opportunity to purchase merchandise or goods and in |
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connection with the purchase receives the seller's promise or |
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representation that the buyer shall have the right to receive |
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compensation or consideration in any form for furnishing to the |
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seller the names of other prospective buyers if receipt of the |
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compensation or consideration is contingent upon the occurrence of |
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an event subsequent to the time the buyer purchases the merchandise |
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or goods; |
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(20) representing that a guaranty [guarantee] or |
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warranty confers or involves rights or remedies which it does not |
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have or involve, provided, however, that nothing in this subchapter |
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shall be construed to expand the implied warranty of |
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merchantability as defined in Sections 2.314 through 2.318 and |
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Sections 2A.212 through 2A.216 to involve obligations in excess of |
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those which are appropriate to the goods; |
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(21) promoting a pyramid promotional scheme, as |
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defined by Section 17.461; |
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(22) representing that work or services have been |
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performed on, or parts replaced in, goods when the work or services |
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were not performed or the parts replaced; |
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(23) filing suit founded upon a written contractual |
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obligation of and signed by the defendant to pay money arising out |
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of or based on a consumer transaction for goods, services, loans, or |
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extensions of credit intended primarily for personal, family, |
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household, or agricultural use in any county other than in the |
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county in which the defendant resides at the time of the |
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commencement of the action or in the county in which the defendant |
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in fact signed the contract; provided, however, that a violation of |
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this subsection shall not occur where it is shown by the person |
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filing such suit that the person [he] neither knew or had reason to |
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know that the county in which such suit was filed was neither the |
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county in which the defendant resides at the commencement of the |
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suit nor the county in which the defendant in fact signed the |
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contract; |
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(24) failing to disclose information concerning goods |
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or services which was known at the time of the transaction if such |
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failure to disclose such information was intended to induce the |
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consumer into a transaction into which the consumer would not have |
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entered had the information been disclosed; |
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(25) using the term "corporation," "incorporated," or |
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an abbreviation of either of those terms in the name of a business |
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entity that is not incorporated under the laws of this state or |
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another jurisdiction; |
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(26) selling, offering to sell, or illegally promoting |
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an annuity contract under Chapter 22, Acts of the 57th Legislature, |
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3rd Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil |
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Statutes), with the intent that the annuity contract will be the |
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subject of a salary reduction agreement, as defined by that Act, if |
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the annuity contract is not an eligible qualified investment under |
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that Act or is not registered with the Teacher Retirement System of |
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Texas as required by Section 8A of that Act; [or] |
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(27) taking advantage of a disaster declared by the |
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governor under Chapter 418, Government Code, by: |
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(A) selling or leasing fuel, food, medicine, or |
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another necessity at an exorbitant or excessive price; or |
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(B) demanding an exorbitant or excessive price in |
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connection with the sale or lease of fuel, food, medicine, or |
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another necessity; or |
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(28) using the translation into a foreign language of |
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a title or other word, including "attorney," "lawyer," "licensed," |
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"notary," and "notary public," in any written material, including |
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an advertisement, a business card, a letterhead, or stationery, in |
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reference to a person who is not an attorney in order to imply that |
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the person is authorized to practice law. |
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SECTION 2. Section 17.48, Business & Commerce Code, is |
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amended by adding Subsections (c) and (d) to read as follows: |
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(c) In an action prosecuted by a district or county attorney |
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under this subchapter for a violation of Section 17.46(b)(28), |
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three-fourths of any civil penalty awarded by a court must be paid |
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to the county where the court is located. |
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(d) A district or county attorney is not required to obtain |
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the permission of the consumer protection division to prosecute an |
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action under this subchapter for a violation of Section |
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17.46(b)(28), if the district or county attorney provides prior |
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written notice to the division as required by Subsection (b). |
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SECTION 3. The change in law made by this Act applies only |
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to a cause of action that accrues on or after the effective date of |
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this Act. A cause of action that accrued before the effective date |
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of this Act is governed by the law in effect immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 4. This Act takes effect September 1, 2015. |