| 1 | 1 | | By: Quintanilla H.B. No. 972 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to inclusion on certain advertising documents of the |
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| 7 | 7 | | license or certificate of registration number of certain |
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| 8 | 8 | | individuals regulated by this state who solicit business in |
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| 9 | 9 | | consumers' homes; providing a civil penalty. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Title 2, Occupations Code, is amended by adding |
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| 12 | 12 | | Chapter 60 to read as follows: |
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| 13 | 13 | | CHAPTER 60. GENERAL LICENSING AND REGISTRATION REQUIREMENTS |
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| 14 | 14 | | Sec. 60.001. SOLICITATION AT CONSUMER'S HOME. (a) In this |
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| 15 | 15 | | section, "solicit business" means to advertise an individual's |
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| 16 | 16 | | business practice, for which the individual is required to hold a |
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| 17 | 17 | | license or certificate of registration issued by a state regulatory |
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| 18 | 18 | | agency, to a consumer at the consumer's home, in person, for the |
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| 19 | 19 | | purpose of closing a sale or entering into a service agreement or |
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| 20 | 20 | | service contract with the consumer in the home. |
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| 21 | 21 | | (b) A state regulatory agency that determines that the |
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| 22 | 22 | | individuals licensed or registered by the agency solicit business |
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| 23 | 23 | | in consumers' homes as a regular business practice shall adopt |
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| 24 | 24 | | rules requiring each individual licensed or registered by the |
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| 25 | 25 | | agency to prominently display the individual's license or |
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| 26 | 26 | | certificate of registration number and the individual's signature |
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| 27 | 27 | | on any document evidencing the sale or any service agreement or |
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| 28 | 28 | | service contract that is provided by the individual to the |
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| 29 | 29 | | consumer. |
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| 30 | 30 | | (c) An individual who holds a license or certificate of |
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| 31 | 31 | | registration issued by a state regulatory agency that adopts rules |
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| 32 | 32 | | under Subsection (b) shall prominently display the individual's |
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| 33 | 33 | | license or certificate number and the individual's signature on the |
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| 34 | 34 | | document evidencing the sale or the service agreement or service |
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| 35 | 35 | | contract that is provided by the individual to the consumer. |
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| 36 | 36 | | Sec. 60.002. EXEMPTION. This chapter does not apply to: |
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| 37 | 37 | | (1) an individual employed by or acting on behalf of an |
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| 38 | 38 | | entity that holds a license or certificate of registration issued |
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| 39 | 39 | | by the Public Utility Commission of Texas; |
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| 40 | 40 | | (2) an entity controlling, controlled by, or under the |
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| 41 | 41 | | same common control as an entity that holds a license or certificate |
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| 42 | 42 | | of registration issued by the Public Utility Commission of Texas; |
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| 43 | 43 | | or |
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| 44 | 44 | | (3) an insurance agent licensed under Subtitle B, |
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| 45 | 45 | | Title 13, Insurance Code, other than an agent licensed to solicit |
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| 46 | 46 | | life, accident, and health insurance coverage who offers for sale |
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| 47 | 47 | | in the consumer's home a Medicare Advantage Plan. |
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| 48 | 48 | | Sec. 60.003. CIVIL PENALTY. (a) An individual is liable to |
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| 49 | 49 | | this state for a civil penalty of not more than $1,000 for each |
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| 50 | 50 | | violation if the individual: |
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| 51 | 51 | | (1) violates Section 60.001 or a rule adopted by a |
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| 52 | 52 | | state regulatory agency to enforce that section; |
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| 53 | 53 | | (2) represents that an expired license or certificate |
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| 54 | 54 | | of registration issued by a state regulatory agency is valid; or |
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| 55 | 55 | | (3) displays a counterfeit license or certificate of |
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| 56 | 56 | | registration or uses a counterfeit license or certificate number in |
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| 57 | 57 | | any document provided to the public. |
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| 58 | 58 | | (b) The amount of the penalty shall be based on: |
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| 59 | 59 | | (1) the seriousness of the violation; |
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| 60 | 60 | | (2) the history of previous violations; |
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| 61 | 61 | | (3) the amount necessary to deter a future violation; |
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| 62 | 62 | | and |
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| 63 | 63 | | (4) any other matter that justice may require. |
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| 64 | 64 | | (c) The attorney general may sue to collect a civil penalty |
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| 65 | 65 | | under this section. In the suit the attorney general may recover, |
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| 66 | 66 | | on behalf of the state, the reasonable expenses incurred in |
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| 67 | 67 | | obtaining the penalty, including investigation and court costs, |
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| 68 | 68 | | reasonable attorney's fees, witness fees, and other expenses. |
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| 69 | 69 | | SECTION 2. Not later than December 1, 2009, a state |
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| 70 | 70 | | regulatory agency or the governing body of a state regulatory |
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| 71 | 71 | | agency, as appropriate, to which Chapter 60, Occupations Code, as |
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| 72 | 72 | | added by this Act, applies shall adopt the rules necessary to |
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| 73 | 73 | | implement that chapter. |
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| 74 | 74 | | SECTION 3. Notwithstanding Chapter 60, Occupations Code, as |
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| 75 | 75 | | added by this Act, an individual subject to that chapter is not |
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| 76 | 76 | | required to include the individual's license or certificate number |
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| 77 | 77 | | on documents provided to the public before January 1, 2010. |
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| 78 | 78 | | SECTION 4. This Act takes effect September 1, 2009. |
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