BILL ANALYSIS Senate Research Center S.B. 1701 81R8435 JE-F By: Fraser Business & Commerce 4/4/2009 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Currently, Section 51.003 (Definition of Business Opportunity), Business & Commerce Code, defines "business opportunity." Section 51.003(b) (relating to what the definition of "business opportunity" does not include) creates an exception for that definition. One such exception is a franchise. Subsection (b)(8) (relating to the definition of "business opportunity" not including an arrangement defined as a franchise under certain sections) refers to C.F.R. Section 436.2(a) for the definition of "franchise." As proposed, S.B. 1701 provides that the definition of "business opportunity" does not include an arrangement defined as a franchise by 16 C.F.R. Part 436, rather than 16 C.F.R. Section 436.2(a), and its subsequent amendments under certain circumstances. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 51.003(b), Business & Commerce Code, as effective April 1, 2009, to redefine "business opportunity," to exclude an arrangement defined as a franchise by 16 C.F.R. Part 436, rather than 16 C.F.R. Section 436.2(a), and its subsequent amendments under certain circumstances. SECTION 2. Effective date: September 1, 2009.
BILL ANALYSIS
Senate Research Center S.B. 1701
81R8435 JE-F By: Fraser
Business & Commerce
4/4/2009
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Currently, Section 51.003 (Definition of Business Opportunity), Business & Commerce Code, defines "business opportunity." Section 51.003(b) (relating to what the definition of "business opportunity" does not include) creates an exception for that definition. One such exception is a franchise. Subsection (b)(8) (relating to the definition of "business opportunity" not including an arrangement defined as a franchise under certain sections) refers to C.F.R. Section 436.2(a) for the definition of "franchise."
As proposed, S.B. 1701 provides that the definition of "business opportunity" does not include an arrangement defined as a franchise by 16 C.F.R. Part 436, rather than 16 C.F.R. Section 436.2(a), and its subsequent amendments under certain circumstances.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 51.003(b), Business & Commerce Code, as effective April 1, 2009, to redefine "business opportunity," to exclude an arrangement defined as a franchise by 16 C.F.R. Part 436, rather than 16 C.F.R. Section 436.2(a), and its subsequent amendments under certain circumstances.
SECTION 2. Effective date: September 1, 2009.