H.B. No. 2278
 
 
 
 
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               (3)  eliminating repealed, duplicative,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:
  TITLE 4.  BUSINESS OPPORTUNITIES AND AGREEMENTS
  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
  SUBTITLE A.  GENERAL PRACTICES
  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]
  SUBTITLE B.  RENTAL PRACTICES
  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.  PROHIBITED PROVISIONS. (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]
  SUBTITLE C.  BUSINESS OPERATIONS
  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.)
  TITLE 6.  SALE OR TRANSFER OF GOODS
  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 th