BILL ANALYSIS

H.B. 4899

By: Wilson

Trade, Workforce & Economic Development

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Currently, a seller may not make a telephone solicitation from a location in Texas or to a purchaser located in Texas unless the seller holds a registration certificate for the business location from which the telephone solicitation is made. However, text messages are not included in the definition of telephone solicitations. Thus, sellers are able to make solicitations via text without having to obtain registration certificates. The bill author has informed the committee that this has caused many text message solicitations, often from foreign countries and for nefarious purposes. H.B. 4899 seeks to address this issue by applying telephone solicitation consumer protection laws to solicitations made using text messages.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

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

ANALYSIS

H.B. 4899 amends the Business & Commerce Code to establish that a violation of the Texas Telemarketing Disclosure and Privacy Act or provisions relating to telephonic communications made for the purpose of solicitation is a false, misleading, or deceptive act or practice under the Deceptive Trade Practices-Consumer Protection Act. The bill authorizes a public or private right or remedy prescribed by the Deceptive Trade Practices-Consumer Protection Act to be used to enforce the Texas Telemarketing Disclosure and Privacy Act or provisions relating to telephonic communications made for the purpose of solicitation. The bill prohibits the fact that a claimant has recovered under a private action arising from a violation of provisions relating to telephonic communications made for the purpose of solicitation more than once from limiting recovery in a future legal proceeding in any manner.

H.B. 4899 includes in the definition of "telephone solicitation" a transmission, including a transmission of a text or graphic message or of an image, initiated by a seller or salesperson to induce a person to purchase, rent, claim, or receive an item. With respect to provisions under the Texas Telemarketing Disclosure and Privacy Act and provisions relating to the regulation of telephone solicitation, the bill does the following:

· specifies that those provisions are required to be liberally construed and applied to promote their underlying purpose to protect both persons and the public against false, misleading, abusive, or deceptive practices in the telephone solicitation business or telemarketing business, as applicable; and

· prohibits the fact that a claimant has recovered under a private action arising from a violation of those provisions more than once from limiting recovery in a future legal proceeding in any manner.

The bill's provisions apply only to conduct that occurs on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2025.