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	(3)  eliminating repealed, duplicative,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.