Texas 2019 - 86th Regular

Texas House Bill HB2820 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 2820
	1	+	By: Flynn (Senate Sponsor - Hughes) H.B. No. 2820
	2	+	(In the Senate - Received from the House April 11, 2019;
	3	+	April 15, 2019, read first time and referred to Committee on State
	4	+	Affairs; April 29, 2019, reported favorably by the following vote:
	5	+	Yeas 8, Nays 0; April 29, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to the registration and certification of certain
6	12		investment products made available to public school employees.
7	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	14		ARTICLE 1. ELIGIBLE QUALIFIED INVESTMENTS
9	15		SECTION 1.01. Section 4, Chapter 22 (S.B. 17), Acts of the
10	16		57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
11	17		Vernon's Texas Civil Statutes), is amended to read as follows:
12	18		Sec. 4. In this section and in Sections 5, 6, [7, 8, 8A,] 9,
13	19		9A, 9B, 10, 11, and 12[, and 13] of this Act:
14	20		(1) ["Board of trustees" means the board of trustees
15	21		of the Teacher Retirement System of Texas.
16	22		[(2)] "Educational institution" means a school
17	23		district or an open-enrollment charter school.
18	24		(2) [(3)] "Eligible qualified investment" means a
19	25		qualified investment product offered by a company that[:
20	26		[(A)] is eligible to offer the product [certified
21	27		to the board of trustees] under Section 6 [5] of this Act[; or
22	28		[(B) is eligible to certify to the board of
23	29		trustees under Section 8 of this Act].
24	30		(3) [(4)] "Employee" means an employee of an
25	31		educational institution.
26	32		(4) [(5)] "Qualified investment product" means an
27	33		annuity or investment that:
28	34		(A) meets the requirements of Section 403(b),
29	35		Internal Revenue Code of 1986, and its subsequent amendments;
30	36		(B) complies with applicable federal insurance
31	37		and securities laws and regulations; and
32	38		(C) complies with applicable state insurance and
33	39		securities laws and rules.
34	40		(5) [(6) "Retirement system" means the Teacher
35	41		Retirement System of Texas.
36	42		[(7)] "Salary reduction agreement" means an agreement
37	43		between an educational institution and an employee to reduce the
38	44		employee's salary for the purpose of making direct contributions to
39	45		or purchases of a qualified investment product.
40	46		SECTION 1.02. Sections 5(a) and (f), Chapter 22 (S.B. 17),
41	47		Acts of the 57th Legislature, 3rd Called Session, 1962 (Article
42	48		6228a-5, Vernon's Texas Civil Statutes), are amended to read as
43	49		follows:
44	50		(a) An educational institution may enter into a salary
45	51		reduction agreement with an employee of the institution only if the
46	52		qualified investment product [:
47	53		[(1)] is an eligible qualified investment[; and
48	54		[(2) is registered with the retirement system under
49	55		Section 8A of this Act].
50	56		(f) To the greatest degree possible, educational
51	57		institutions that enter into a salary reduction agreement with
52	58		[employers of] employees [who participate in the program offered]
53	59		under this section shall require that contributions to eligible
54	60		qualified investments be made by automatic payroll deduction and
55	61		deposited directly in the investment accounts.
56	62		SECTION 1.03. Sections 6(a) and (b), Chapter 22 (S.B. 17),
57	63		Acts of the 57th Legislature, 3rd Called Session, 1962 (Article
58	64		6228a-5, Vernon's Texas Civil Statutes), are amended to read as
59	65		follows:
60	66		(a) An insurance [A] company is eligible to offer qualified
61	67		investment products to the employees of educational institutions
62	68		under [certify to the retirement system under Section 5 of] this Act
63	69		if the company satisfies the following [financial strength]
64	70		criteria:
65	71		(1) the company is licensed by the Texas Department of
66	72		Insurance and is in compliance with minimum capital and surplus
67	73		requirements, including applicable risk-based capital and surplus
68	74		requirements prescribed by rules adopted by the department
69	75		[company's actuarial opinions required under Articles 1.11 and
70	76		3.28, Insurance Code, have not been adverse or qualified in the five
71	77		years preceding the date the application is filed;
72	78		[(2) the company is subject to the annual audit
73	79		requirements of Article 1.15A, Insurance Code, and its most recent
74	80		audit of financial strength conducted by an independent certified
75	81		public accountant is timely filed and does not indicate the
76	82		existence of any material adverse financial conditions in the
77	83		company for the five years preceding the filing deadline for the
78	84		audit;
79	85		[(3) the company has not been the subject of an
80	86		administrative or regulatory action by the Texas Department of
81	87		Insurance under Article 1.32 or 21.28-A or Section 83.051,
82	88		Insurance Code, in the five years preceding the date the
83	89		application is filed;
84	90		[(4) the company has maintained during the five years
85	91		preceding the date the application is filed an average of at least
86	92		400 percent of the authorized control level, as calculated in
87	93		accordance with the risk-based capital and surplus requirements
88	94		established in rules adopted by the Texas Department of Insurance;
89	95		[(5) the company has not fallen below 300 percent of the
90	96		authorized control level, as calculated in accordance with the
91	97		risk-based capital and surplus established in rules adopted by the
92	98		Texas Department of Insurance, at any time in the five years
93	99		preceding the date the application is filed]; and
94	100		(2) [(6)] the company has [at least five years']
95	101		experience in providing qualified investment products and has a
96	102		specialized department dedicated to the service of qualified
97	103		investment products, as determined by the educational institution.
98	104		(b) A company that offers qualified investment products
99	105		other than annuity contracts, including a company that offers
100	106		custodial accounts under Section 403(b)(7), Internal Revenue Code
101	107		of 1986, is eligible to offer qualified investment products to
102	108		employees of educational institutions under this Act [For purposes
103	109		of Subsection (a)(4) of this section, the company must calculate
104	110		the five-year average on the same date each year].
105	111		SECTION 1.04. Section 9(a), Chapter 22 (S.B. 17), Acts of
106	112		the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
107	113		Vernon's Texas Civil Statutes), is amended to read as follows:
108	114		(a) An educational institution may not:
109	115		(1) except as provided by Subdivision (8) of this
110	116		subsection and Subsection (b) of this section, refuse to enter into
111	117		a salary reduction agreement with an employee if the qualified
112	118		investment product that is the subject of the salary reduction is an
113	119		eligible qualified investment [and is registered with the system
114	120		under Section 8A];
115	121		(2) require or coerce an employee's attendance at any
116	122		meeting at which qualified investment products are marketed;
117	123		(3) limit the ability of an employee to initiate,
118	124		change, or terminate a qualified investment product at any time the
119	125		employee chooses;
120	126		(4) grant exclusive access to an employee by
121	127		discriminating against or imposing barriers to any agent, broker,
122	128		or company that provides qualified investment products under this
123	129		Act;
124	130		(5) grant exclusive access to information about an
125	131		employee's financial information, including information about an
126	132		employee's qualified investment products, to a company or agent or
127	133		affiliate of a company offering qualified investment products
128	134		unless the employee consents in writing to the access;
129	135		(6) accept any benefit from a company or from an agent
130	136		or affiliate of a company that offers qualified investment
131	137		products;
132	138		(7) use public funds to recommend a qualified
133	139		investment product offered by a company or an agent or affiliate of
134	140		a company that offers a qualified investment product; or
135	141		(8) enter into or continue a salary reduction
136	142		agreement with an employee if the qualified investment product that
137	143		is the subject of the salary reduction agreement is not an eligible
138	144		qualified investment[, including the investment product of a
139	145		company whose certification has been denied, suspended, or revoked]
140	146		without first providing the employee with notice in writing that:
141	147		(A) indicates the reason the subject of the
142	148		salary reduction agreement is no longer an eligible qualified
143	149		investment [or why certification has been denied, suspended, or
144	150		revoked]; and
145	151		(B) clearly states that by signing the notice the
146	152		employee is agreeing to enter into or continue the salary reduction
147	153		agreement.
148	154		SECTION 1.05. Section 9A, Chapter 22 (S.B. 17), Acts of the
149	155		57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
150	156		Vernon's Texas Civil Statutes), is amended to read as follows:
151	157		Sec. 9A. A person, other than an employee of an educational
152	158		institution, or an affiliate of the person may not enter into or
153	159		renew a contract under which the person is to provide services for
154	160		or administer a plan offered by the institution under Section
155	161		403(b), Internal Revenue Code of 1986, unless the person:
156	162		(1) holds a license or certificate of authority issued
157	163		by the Texas Department of Insurance;
158	164		(2) is registered as a securities dealer or agent or
159	165		investment advisor with the State Securities Board; or
160	166		(3) is a financial institution that:
161	167		(A) is authorized by state or federal law to
162	168		exercise fiduciary powers; and
163	169		(B) has sufficient presence [its main office, a
164	170		branch office, or a trust office] in this state to serve the
165	171		employees of educational institutions who participate in the plan.
166	172		SECTION 1.06. Section 9B(b), Chapter 22 (S.B. 17), Acts of
167	173		the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
168	174		Vernon's Texas Civil Statutes), is amended to read as follows:
169	175		(b) If a person described by Subsection (a) holds a meeting
170	176		at which qualified investment products will be marketed to
171	177		employees of the educational institution, the person must provide
172	178		representatives of other companies eligible to sell qualified
173	179		investment products under Section 6 [certified to the retirement
174	180		system under Section 5 or 8] of this Act an opportunity to attend
175	181		and market their qualified investment products at the meeting.
176	182		SECTION 1.07. Section 10(a), Chapter 22 (S.B. 17), Acts of
177	183		the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
178	184		Vernon's Texas Civil Statutes), is amended to read as follows:
179	185		(a) A person commits an offense if the person:
180	186		(1) sells or offers for sale an investment product
181	187		that is not an eligible qualified investment [or that is not
182	188		registered under Section 8A of this Act] and that the person knows
183	189		will be the subject of a salary reduction agreement;
184	190		(2) violates the licensing requirements of Title 13,
185	191		Insurance Code, with regard to a qualified investment product that
186	192		the person knows will be the subject of a salary reduction
187	193		agreement; or
188	194		(3) engages in activity described by Subchapter B,
189	195		Chapter 541, Insurance Code, with regard to a qualified investment
190	196		product that the person knows will be the subject of a salary
191	197		reduction agreement.
192	198		SECTION 1.08. Section 11(c), Chapter 22 (S.B. 17), Acts of
193	199		the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
194	200		Vernon's Texas Civil Statutes), is amended to read as follows:
195	201		(c) The notice required under this section must be uniform
196	202		and:
197	203		(1) be in at least 14-point type;
198	204		(2) contain spaces for:
199	205		(A) the name, address, and telephone number of
200	206		the agent and company offering the annuity contract for sale;
201	207		(B) the name, address, and telephone number of
202	208		the company underwriting the annuity;
203	209		(C) the license number of the person offering to
204	210		sell the product;
205	211		(D) the name of the state agency that issued the
206	212		person's license;
207	213		(E) the name of the company account
208	214		representative who has the authority to respond to inquiries or
209	215		complaints; and
210	216		(F) with respect to fixed annuity products:
211	217		(i) the current interest rate or the
212	218		formula used to calculate the current rate of interest;
213	219		(ii) the guaranteed rate of interest and
214	220		the percentage of the premium to which the interest rate applies;
215	221		(iii) how interest is compounded;
216	222		(iv) the amount of any up-front, surrender,
217	223		withdrawal, deferred sales, and market value adjustment charges or
218	224		any other contract restriction that exceeds 10 years;
219	225		(v) the time, if any, the annuity is
220	226		required to be in force before the purchaser is entitled to the full
221	227		bonus accumulation value;
222	228		(vi) the manner in which the amount of the
223	229		guaranteed benefit under the annuity is computed;
224	230		(vii) whether loans are guaranteed to be
225	231		available under the annuity;
226	232		(viii) what restrictions, if any, apply to
227	233		the availability of money attributable to the value of the annuity
228	234		once the purchaser is retired or separated from the employment of
229	235		the employer;
230	236		(ix) the amount of any other fees, costs, or
231	237		penalties;
232	238		(x) whether the annuity guarantees the
233	239		participant the right to surrender a percentage of the surrender
234	240		value each year, and the percentage, if any; and
235	241		(xi) whether the annuity guarantees the
236	242		interest rate associated with any settlement option; and
237	243		(3) state, in plain language:
238	244		(A) that the company offering the annuity must
239	245		comply with Section 6 [5] of this Act and that the annuity must be a
240	246		qualified investment product [registered under Section 8A of this
241	247		Act];
242	248		(B) [that the potential purchaser may contact the
243	249		retirement system or access its Internet website to determine which
244	250		companies are in compliance with Section 5 of this Act and which
245	251		qualified investment products are registered under Section 8A of
246	252		this Act;
247	253		[(C)] the civil remedies available to the
248	254		employee;
249	255		(C) [(D)] that the employee may purchase any
250	256		eligible qualified investment through a salary reduction
251	257		agreement;
252	258		(D) [(E)] the name and telephone number of the
253	259		Texas Department of Insurance division that specializes in consumer
254	260		protection; and
255	261		(E) [(F)] the name and telephone number of the
256	262		attorney general's division that specializes in consumer
257	263		protection.
258	264		SECTION 1.09. Section 12, Chapter 22 (S.B. 17), Acts of the
259	265		57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
260	266		Vernon's Texas Civil Statutes), is amended to read as follows:
261	267		Sec. 12. A company that offers an eligible qualified
262	268		investment that is subject to a salary reduction agreement shall
263	269		require [demonstrate annually to the retirement system] that each
264	270		of its representatives are properly licensed and qualified, by
265	271		training and continuing education, to sell and service the
266	272		company's eligible qualified investments.
267	273		SECTION 1.10. The following laws are repealed:
268	274		(1) Sections 5(b), (c), (d), and (e), Chapter 22 (S.B.
269	275		17), Acts of the 57th Legislature, 3rd Called Session, 1962
270	276		(Article 6228a-5, Vernon's Texas Civil Statutes);
271	277		(2) Sections 6(c), (d), (d-1), (d-2), (e), (f), (f-1),
272	278		(g), (h), and (i), Chapter 22 (S.B. 17), Acts of the 57th
273	279		Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
274	280		Texas Civil Statutes);
275	281		(3) Section 7, Chapter 22 (S.B. 17), Acts of the 57th
276	282		Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
277	283		Texas Civil Statutes);
278	284		(4) Section 8, Chapter 22 (S.B. 17), Acts of the 57th
279	285		Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
280	286		Texas Civil Statutes);
281	287		(5) Section 8A, Chapter 22 (S.B. 17), Acts of the 57th
282	288		Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
283	289		Texas Civil Statutes);
284	290		(6) Section 11(b), Chapter 22 (S.B. 17), Acts of the
285	291		57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
286	292		Vernon's Texas Civil Statutes); and
287	293		(7) Section 13, Chapter 22 (S.B. 17), Acts of the 57th
288	294		Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
289	295		Texas Civil Statutes).
290	296		ARTICLE 2. CONFORMING CHANGE
291	297		SECTION 2.01. Section 17.46(b), Business & Commerce Code,
292	298		as amended by Chapters 324 (S.B. 1488), 858 (H.B. 2552), and 967
293	299		(S.B. 2065), Acts of the 85th Legislature, Regular Session, 2017,
294	300		is reenacted and amended to read as follows:
295	301		(b) Except as provided in Subsection (d) of this section,
296	302		the term "false, misleading, or deceptive acts or practices"
297	303		includes, but is not limited to, the following acts:
298	304		(1) passing off goods or services as those of another;
299	305		(2) causing confusion or misunderstanding as to the
300	306		source, sponsorship, approval, or certification of goods or
301	307		services;
302	308		(3) causing confusion or misunderstanding as to
303	309		affiliation, connection, or association with, or certification by,
304	310		another;
305	311		(4) using deceptive representations or designations
306	312		of geographic origin in connection with goods or services;
307	313		(5) representing that goods or services have
308	314		sponsorship, approval, characteristics, ingredients, uses,
309	315		benefits, or quantities which they do not have or that a person has
310	316		a sponsorship, approval, status, affiliation, or connection which
311	317		the person does not;
312	318		(6) representing that goods are original or new if
313	319		they are deteriorated, reconditioned, reclaimed, used, or
314	320		secondhand;
315	321		(7) representing that goods or services are of a
316	322		particular standard, quality, or grade, or that goods are of a
317	323		particular style or model, if they are of another;
318	324		(8) disparaging the goods, services, or business of
319	325		another by false or misleading representation of facts;
320	326		(9) advertising goods or services with intent not to
321	327		sell them as advertised;
322	328		(10) advertising goods or services with intent not to
323	329		supply a reasonable expectable public demand, unless the
324	330		advertisements disclosed a limitation of quantity;
325	331		(11) making false or misleading statements of fact
326	332		concerning the reasons for, existence of, or amount of price
327	333		reductions;
328	334		(12) representing that an agreement confers or
329	335		involves rights, remedies, or obligations which it does not have or
330	336		involve, or which are prohibited by law;
331	337		(13) knowingly making false or misleading statements
332	338		of fact concerning the need for parts, replacement, or repair
333	339		service;
334	340		(14) misrepresenting the authority of a salesman,
335	341		representative or agent to negotiate the final terms of a consumer
336	342		transaction;
337	343		(15) basing a charge for the repair of any item in
338	344		whole or in part on a guaranty or warranty instead of on the value of
339	345		the actual repairs made or work to be performed on the item without
340	346		stating separately the charges for the work and the charge for the
341	347		warranty or guaranty, if any;
342	348		(16) disconnecting, turning back, or resetting the
343	349		odometer of any motor vehicle so as to reduce the number of miles
344	350		indicated on the odometer gauge;
345	351		(17) advertising of any sale by fraudulently
346	352		representing that a person is going out of business;
347	353		(18) advertising, selling, or distributing a card
348	354		which purports to be a prescription drug identification card issued
349	355		under Section 4151.152, Insurance Code, in accordance with rules
350	356		adopted by the commissioner of insurance, which offers a discount
351	357		on the purchase of health care goods or services from a third party
352	358		provider, and which is not evidence of insurance coverage, unless:
353	359		(A) the discount is authorized under an agreement
354	360		between the seller of the card and the provider of those goods and
355	361		services or the discount or card is offered to members of the
356	362		seller;
357	363		(B) the seller does not represent that the card
358	364		provides insurance coverage of any kind; and
359	365		(C) the discount is not false, misleading, or
360	366		deceptive;
361	367		(19) using or employing a chain referral sales plan in
362	368		connection with the sale or offer to sell of goods, merchandise, or
363	369		anything of value, which uses the sales technique, plan,
364	370		arrangement, or agreement in which the buyer or prospective buyer
365	371		is offered the opportunity to purchase merchandise or goods and in
366	372		connection with the purchase receives the seller's promise or
367	373		representation that the buyer shall have the right to receive
368	374		compensation or consideration in any form for furnishing to the
369	375		seller the names of other prospective buyers if receipt of the
370	376		compensation or consideration is contingent upon the occurrence of
371	377		an event subsequent to the time the buyer purchases the merchandise
372	378		or goods;
373	379		(20) representing that a guaranty or warranty confers
374	380		or involves rights or remedies which it does not have or involve,
375	381		provided, however, that nothing in this subchapter shall be
376	382		construed to expand the implied warranty of merchantability as
377	383		defined in Sections 2.314 through 2.318 and Sections 2A.212 through
378	384		2A.216 to involve obligations in excess of those which are
379	385		appropriate to the goods;
380	386		(21) promoting a pyramid promotional scheme, as
381	387		defined by Section 17.461;
382	388		(22) representing that work or services have been
383	389		performed on, or parts replaced in, goods when the work or services
384	390		were not performed or the parts replaced;
385	391		(23) filing suit founded upon a written contractual
386	392		obligation of and signed by the defendant to pay money arising out
387	393		of or based on a consumer transaction for goods, services, loans, or
388	394		extensions of credit intended primarily for personal, family,
389	395		household, or agricultural use in any county other than in the
390	396		county in which the defendant resides at the time of the
391	397		commencement of the action or in the county in which the defendant
392	398		in fact signed the contract; provided, however, that a violation of
393	399		this subsection shall not occur where it is shown by the person
394	400		filing such suit that the person neither knew or had reason to know
395	401		that the county in which such suit was filed was neither the county
396	402		in which the defendant resides at the commencement of the suit nor
397	403		the county in which the defendant in fact signed the contract;
398	404		(24) failing to disclose information concerning goods
399	405		or services which was known at the time of the transaction if such
400	406		failure to disclose such information was intended to induce the
401	407		consumer into a transaction into which the consumer would not have
402	408		entered had the information been disclosed;
403	409		(25) using the term "corporation," "incorporated," or
404	410		an abbreviation of either of those terms in the name of a business
405	411		entity that is not incorporated under the laws of this state or
406	412		another jurisdiction;
407	413		(26) selling, offering to sell, or illegally promoting
408	414		an annuity contract under Chapter 22, Acts of the 57th Legislature,
409	415		3rd Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
410	416		Statutes), with the intent that the annuity contract will be the
411	417		subject of a salary reduction agreement, as defined by that Act, if
412	418		the annuity contract is not an eligible qualified investment under
413	419		that Act [or is not registered with the Teacher Retirement System of
414	420		Texas as required by Section 8A of that Act];
415	421		(27) taking advantage of a disaster declared by the
416	422		governor under Chapter 418, Government Code, by:
417	423		(A) selling or leasing fuel, food, medicine, or
418	424		another necessity at an exorbitant or excessive price; or
419	425		(B) demanding an exorbitant or excessive price in
420	426		connection with the sale or lease of fuel, food, medicine, or
421	427		another necessity;
422	428		(28) using the translation into a foreign language of
423	429		a title or other word, including "attorney," "immigration
424	430		consultant," "immigration expert," "lawyer," "licensed," "notary,"
425	431		and "notary public," in any written or electronic material,
426	432		including an advertisement, a business card, a letterhead,
427	433		stationery, a website, or an online video, in reference to a person
428	434		who is not an attorney in order to imply that the person is
429	435		authorized to practice law in the United States;
430	436		(29) delivering or distributing a solicitation in
431	437		connection with a good or service that:
432	438		(A) represents that the solicitation is sent on
433	439		behalf of a governmental entity when it is not; or
434	440		(B) resembles a governmental notice or form that
435	441		represents or implies that a criminal penalty may be imposed if the
436	442		recipient does not remit payment for the good or service;
437	443		(30) delivering or distributing a solicitation in
438	444		connection with a good or service that resembles a check or other
439	445		negotiable instrument or invoice, unless the portion of the
440	446		solicitation that resembles a check or other negotiable instrument
441	447		or invoice includes the following notice, clearly and conspicuously
442	448		printed in at least 18-point type:
443	449		"SPECIMEN-NON-NEGOTIABLE";
444	450		(31) in the production, sale, distribution, or
445	451		promotion of a synthetic substance that produces and is intended to
446	452		produce an effect when consumed or ingested similar to, or in excess
447	453		of, the effect of a controlled substance or controlled substance
448	454		analogue, as those terms are defined by Section 481.002, Health and
449	455		Safety Code:
450	456		(A) making a deceptive representation or
451	457		designation about the synthetic substance; or
452	458		(B) causing confusion or misunderstanding as to
453	459		the effects the synthetic substance causes when consumed or
454	460		ingested;
455	461		(32) a licensed public insurance adjuster directly or
456	462		indirectly soliciting employment, as defined by Section 38.01,
457	463		Penal Code, for an attorney, or a licensed public insurance
458	464		adjuster entering into a contract with an insured for the primary
459	465		purpose of referring the insured to an attorney without the intent
460	466		to actually perform the services customarily provided by a licensed
461	467		public insurance adjuster, provided that this subdivision may not
462	468		be construed to prohibit a licensed public insurance adjuster from
463	469		recommending a particular attorney to an insured; [or]
464	470		(33) owning, operating, maintaining, or advertising a
465	471		massage establishment, as defined by Section 455.001, Occupations
466	472		Code, that:
467	473		(A) is not appropriately licensed under Chapter
468	474		455, Occupations Code, or is not in compliance with the applicable
469	475		licensing and other requirements of that chapter; or
470	476		(B) is not in compliance with an applicable local
471	477		ordinance relating to the licensing or regulation of massage
472	478		establishments; or
473	479		(34) [(33)] a warrantor of a vehicle protection
474	480		product warranty using, in connection with the product, a name that
475	481		includes "casualty," "surety," "insurance," "mutual," or any other
476	482		word descriptive of an insurance business, including property or
477	483		casualty insurance, or a surety business.
478	484		ARTICLE 3. TRANSITIONS; CONFLICT WITH OTHER LEGISLATION; EFFECTIVE
479	485		DATE
480	486		SECTION 3.01. The changes in law made by this Act to Chapter
481	487		22 (S.B. 17), Acts of the 57th Legislature, 3rd Called Session,
482	488		1962 (Article 6228a-5, Vernon's Texas Civil Statutes), apply only
483	489		to an offer of a qualified investment product under that Act that is
484	490		made on or after the effective date of this Act. An offer of a
485	491		qualified investment product that is made before the effective date
486	492		of this Act is governed by the law as it existed immediately before
487	493		the effective date of this Act, and that law is continued in effect
488	494		for that purpose.
489	495		SECTION 3.02. The change in law made by this Act to Section
490	496		10(a), Chapter 22 (S.B. 17), Acts of the 57th Legislature, 3rd
491	497		Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
492	498		Statutes), applies only to an offense committed on or after the
493	499		effective date of this Act. For purposes of this section, an
494	500		offense is committed before the effective date of this Act if any
495	501		element of the offense occurs before that date. An offense
496	502		committed before the effective date of this Act is governed by the
497	503		law in effect when the offense was committed, and the former law is
498	504		continued in effect for that purpose.
499	505		SECTION 3.03. Section 17.46(b), Business & Commerce Code,
500	506		as amended by this Act, applies only to a cause of action that
501	507		accrues on or after the effective date of this Act. A cause of
502	508		action that accrues before the effective date of this Act is
503	509		governed by the law as it existed immediately before the effective
504	510		date of this Act, and that law is continued in effect for that
505	511		purpose.
506	512		SECTION 3.04. To the extent of any conflict, this Act
507	513		prevails over another Act of the 86th Legislature, Regular Session,
508	514		2019, relating to nonsubstantive additions to and corrections in
509	515		enacted codes.
510	516		SECTION 3.05. This Act takes effect September 1, 2019.
511		-	______________________________ ______________________________
512		-	President of the Senate Speaker of the House
513		-	I certify that H.B. No. 2820 was passed by the House on April
514		-	10, 2019, by the following vote: Yeas 146, Nays 0, 1 present, not
515		-	voting.
516		-	______________________________
517		-	Chief Clerk of the House
518		-	I certify that H.B. No. 2820 was passed by the Senate on May
519		-	10, 2019, by the following vote: Yeas 31, Nays 0.
520		-	______________________________
521		-	Secretary of the Senate
522		-	APPROVED: _____________________
523		-	Date
524		-	_____________________
525		-	Governor
	517	+	* * * * *