Texas 2019 - 86th Regular

Texas Senate Bill SB1977 Compare Versions

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1	1	86R8229 KFF-F
2	2	By: Hughes S.B. No. 1977
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the registration and certification of certain
8	8	investment products made available to public school employees.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	ARTICLE 1. ELIGIBLE QUALIFIED INVESTMENTS
11	11	SECTION 1.01. Section 4, Chapter 22 (S.B. 17), Acts of the
12	12	57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
13	13	Vernon's Texas Civil Statutes), is amended to read as follows:
14	14	Sec. 4. In this section and in Sections 5, 6, [7, 8, 8A,] 9,
15	15	9A, 9B, 10, 11, and 12[, and 13] of this Act:
16	16	(1) ["Board of trustees" means the board of trustees
17	17	of the Teacher Retirement System of Texas.
18	18	[(2)] "Educational institution" means a school
19	19	district or an open-enrollment charter school.
20	20	(2) [(3)] "Eligible qualified investment" means a
21	21	qualified investment product offered by a company that[:
22	22	[(A)] is eligible to offer the product [certified
23	23	to the board of trustees] under Section 6 [5] of this Act[; or
24	24	[(B) is eligible to certify to the board of
25	25	trustees under Section 8 of this Act].
26	26	(3) [(4)] "Employee" means an employee of an
27	27	educational institution.
28	28	(4) [(5)] "Qualified investment product" means an
29	29	annuity or investment that:
30	30	(A) meets the requirements of Section 403(b),
31	31	Internal Revenue Code of 1986, and its subsequent amendments;
32	32	(B) complies with applicable federal insurance
33	33	and securities laws and regulations; and
34	34	(C) complies with applicable state insurance and
35	35	securities laws and rules.
36	36	(5) [(6) "Retirement system" means the Teacher
37	37	Retirement System of Texas.
38	38	[(7)] "Salary reduction agreement" means an agreement
39	39	between an educational institution and an employee to reduce the
40	40	employee's salary for the purpose of making direct contributions to
41	41	or purchases of a qualified investment product.
42	42	SECTION 1.02. Sections 5(a) and (f), Chapter 22 (S.B. 17),
43	43	Acts of the 57th Legislature, 3rd Called Session, 1962 (Article
44	44	6228a-5, Vernon's Texas Civil Statutes), are amended to read as
45	45	follows:
46	46	(a) An educational institution may enter into a salary
47	47	reduction agreement with an employee of the institution only if the
48	48	qualified investment product [:
49	49	[(1)] is an eligible qualified investment[; and
50	50	[(2) is registered with the retirement system under
51	51	Section 8A of this Act].
52	52	(f) To the greatest degree possible, educational
53	53	institutions that enter into a salary reduction agreement with
54	54	[employers of] employees [who participate in the program offered]
55	55	under this section shall require that contributions to eligible
56	56	qualified investments be made by automatic payroll deduction and
57	57	deposited directly in the investment accounts.
58	58	SECTION 1.03. Sections 6(a) and (b), Chapter 22 (S.B. 17),
59	59	Acts of the 57th Legislature, 3rd Called Session, 1962 (Article
60	60	6228a-5, Vernon's Texas Civil Statutes), are amended to read as
61	61	follows:
62	62	(a) An insurance [A] company is eligible to offer qualified
63	63	investment products to the employees of educational institutions
64	64	under [certify to the retirement system under Section 5 of] this Act
65	65	if the company satisfies the following [financial strength]
66	66	criteria:
67	67	(1) the company is licensed by the Texas Department of
68	68	Insurance and is in compliance with minimum capital and surplus
69	69	requirements, including applicable risk-based capital and surplus
70	70	requirements prescribed by rules adopted by the department
71	71	[company's actuarial opinions required under Articles 1.11 and
72	72	3.28, Insurance Code, have not been adverse or qualified in the five
73	73	years preceding the date the application is filed;
74	74	[(2) the company is subject to the annual audit
75	75	requirements of Article 1.15A, Insurance Code, and its most recent
76	76	audit of financial strength conducted by an independent certified
77	77	public accountant is timely filed and does not indicate the
78	78	existence of any material adverse financial conditions in the
79	79	company for the five years preceding the filing deadline for the
80	80	audit;
81	81	[(3) the company has not been the subject of an
82	82	administrative or regulatory action by the Texas Department of
83	83	Insurance under Article 1.32 or 21.28-A or Section 83.051,
84	84	Insurance Code, in the five years preceding the date the
85	85	application is filed;
86	86	[(4) the company has maintained during the five years
87	87	preceding the date the application is filed an average of at least
88	88	400 percent of the authorized control level, as calculated in
89	89	accordance with the risk-based capital and surplus requirements
90	90	established in rules adopted by the Texas Department of Insurance;
91	91	[(5) the company has not fallen below 300 percent of the
92	92	authorized control level, as calculated in accordance with the
93	93	risk-based capital and surplus established in rules adopted by the
94	94	Texas Department of Insurance, at any time in the five years
95	95	preceding the date the application is filed]; and
96	96	(2) [(6)] the company has [at least five years']
97	97	experience in providing qualified investment products and has a
98	98	specialized department dedicated to the service of qualified
99	99	investment products, as determined by the educational institution.
100	100	(b) A company that offers qualified investment products
101	101	other than annuity contracts, including a company that offers
102	102	custodial accounts under Section 403(b)(7), Internal Revenue Code
103	103	of 1986, is eligible to offer qualified investment products to
104	104	employees of educational institutions under this Act [For purposes
105	105	of Subsection (a)(4) of this section, the company must calculate
106	106	the five-year average on the same date each year].
107	107	SECTION 1.04. Section 9(a), Chapter 22 (S.B. 17), Acts of
108	108	the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
109	109	Vernon's Texas Civil Statutes), is amended to read as follows:
110	110	(a) An educational institution may not:
111	111	(1) except as provided by Subdivision (8) of this
112	112	subsection and Subsection (b) of this section, refuse to enter into
113	113	a salary reduction agreement with an employee if the qualified
114	114	investment product that is the subject of the salary reduction is an
115	115	eligible qualified investment [and is registered with the system
116	116	under Section 8A];
117	117	(2) require or coerce an employee's attendance at any
118	118	meeting at which qualified investment products are marketed;
119	119	(3) limit the ability of an employee to initiate,
120	120	change, or terminate a qualified investment product at any time the
121	121	employee chooses;
122	122	(4) grant exclusive access to an employee by
123	123	discriminating against or imposing barriers to any agent, broker,
124	124	or company that provides qualified investment products under this
125	125	Act;
126	126	(5) grant exclusive access to information about an
127	127	employee's financial information, including information about an
128	128	employee's qualified investment products, to a company or agent or
129	129	affiliate of a company offering qualified investment products
130	130	unless the employee consents in writing to the access;
131	131	(6) accept any benefit from a company or from an agent
132	132	or affiliate of a company that offers qualified investment
133	133	products;
134	134	(7) use public funds to recommend a qualified
135	135	investment product offered by a company or an agent or affiliate of
136	136	a company that offers a qualified investment product; or
137	137	(8) enter into or continue a salary reduction
138	138	agreement with an employee if the qualified investment product that
139	139	is the subject of the salary reduction agreement is not an eligible
140	140	qualified investment[, including the investment product of a
141	141	company whose certification has been denied, suspended, or revoked]
142	142	without first providing the employee with notice in writing that:
143	143	(A) indicates the reason the subject of the
144	144	salary reduction agreement is no longer an eligible qualified
145	145	investment [or why certification has been denied, suspended, or
146	146	revoked]; and
147	147	(B) clearly states that by signing the notice the
148	148	employee is agreeing to enter into or continue the salary reduction
149	149	agreement.
150	150	SECTION 1.05. Section 9A, Chapter 22 (S.B. 17), Acts of the
151	151	57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
152	152	Vernon's Texas Civil Statutes), is amended to read as follows:
153	153	Sec. 9A. A person, other than an employee of an educational
154	154	institution, or an affiliate of the person may not enter into or
155	155	renew a contract under which the person is to provide services for
156	156	or administer a plan offered by the institution under Section
157	157	403(b), Internal Revenue Code of 1986, unless the person:
158	158	(1) holds a license or certificate of authority issued
159	159	by the Texas Department of Insurance;
160	160	(2) is registered as a securities dealer or agent or
161	161	investment advisor with the State Securities Board; or
162	162	(3) is a financial institution that:
163	163	(A) is authorized by state or federal law to
164	164	exercise fiduciary powers; and
165	165	(B) has sufficient presence [its main office, a
166	166	branch office, or a trust office] in this state to serve the
167	167	employees of educational institutions who participate in the plan.
168	168	SECTION 1.06. Section 9B(b), Chapter 22 (S.B. 17), Acts of
169	169	the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
170	170	Vernon's Texas Civil Statutes), is amended to read as follows:
171	171	(b) If a person described by Subsection (a) holds a meeting
172	172	at which qualified investment products will be marketed to
173	173	employees of the educational institution, the person must provide
174	174	representatives of other companies eligible to sell qualified
175	175	investment products under Section 6 [certified to the retirement
176	176	system under Section 5 or 8] of this Act an opportunity to attend
177	177	and market their qualified investment products at the meeting.
178	178	SECTION 1.07. Section 10(a), Chapter 22 (S.B. 17), Acts of
179	179	the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
180	180	Vernon's Texas Civil Statutes), is amended to read as follows:
181	181	(a) A person commits an offense if the person:
182	182	(1) sells or offers for sale an investment product
183	183	that is not an eligible qualified investment [or that is not
184	184	registered under Section 8A of this Act] and that the person knows
185	185	will be the subject of a salary reduction agreement;
186	186	(2) violates the licensing requirements of Title 13,
187	187	Insurance Code, with regard to a qualified investment product that
188	188	the person knows will be the subject of a salary reduction
189	189	agreement; or
190	190	(3) engages in activity described by Subchapter B,
191	191	Chapter 541, Insurance Code, with regard to a qualified investment
192	192	product that the person knows will be the subject of a salary
193	193	reduction agreement.
194	194	SECTION 1.08. Section 11(c), Chapter 22 (S.B. 17), Acts of
195	195	the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
196	196	Vernon's Texas Civil Statutes), is amended to read as follows:
197	197	(c) The notice required under this section must be uniform
198	198	and:
199	199	(1) be in at least 14-point type;
200	200	(2) contain spaces for:
201	201	(A) the name, address, and telephone number of
202	202	the agent and company offering the annuity contract for sale;
203	203	(B) the name, address, and telephone number of
204	204	the company underwriting the annuity;
205	205	(C) the license number of the person offering to
206	206	sell the product;
207	207	(D) the name of the state agency that issued the
208	208	person's license;
209	209	(E) the name of the company account
210	210	representative who has the authority to respond to inquiries or
211	211	complaints; and
212	212	(F) with respect to fixed annuity products:
213	213	(i) the current interest rate or the
214	214	formula used to calculate the current rate of interest;
215	215	(ii) the guaranteed rate of interest and
216	216	the percentage of the premium to which the interest rate applies;
217	217	(iii) how interest is compounded;
218	218	(iv) the amount of any up-front, surrender,
219	219	withdrawal, deferred sales, and market value adjustment charges or
220	220	any other contract restriction that exceeds 10 years;
221	221	(v) the time, if any, the annuity is
222	222	required to be in force before the purchaser is entitled to the full
223	223	bonus accumulation value;
224	224	(vi) the manner in which the amount of the
225	225	guaranteed benefit under the annuity is computed;
226	226	(vii) whether loans are guaranteed to be
227	227	available under the annuity;
228	228	(viii) what restrictions, if any, apply to
229	229	the availability of money attributable to the value of the annuity
230	230	once the purchaser is retired or separated from the employment of
231	231	the employer;
232	232	(ix) the amount of any other fees, costs, or
233	233	penalties;
234	234	(x) whether the annuity guarantees the
235	235	participant the right to surrender a percentage of the surrender
236	236	value each year, and the percentage, if any; and
237	237	(xi) whether the annuity guarantees the
238	238	interest rate associated with any settlement option; and
239	239	(3) state, in plain language:
240	240	(A) that the company offering the annuity must
241	241	comply with Section 6 [5] of this Act and that the annuity must be a
242	242	qualified investment product [registered under Section 8A of this
243	243	Act];
244	244	(B) [that the potential purchaser may contact the
245	245	retirement system or access its Internet website to determine which
246	246	companies are in compliance with Section 5 of this Act and which
247	247	qualified investment products are registered under Section 8A of
248	248	this Act;
249	249	[(C)] the civil remedies available to the
250	250	employee;
251	251	(C) [(D)] that the employee may purchase any
252	252	eligible qualified investment through a salary reduction
253	253	agreement;
254	254	(D) [(E)] the name and telephone number of the
255	255	Texas Department of Insurance division that specializes in consumer
256	256	protection; and
257	257	(E) [(F)] the name and telephone number of the
258	258	attorney general's division that specializes in consumer
259	259	protection.
260	260	SECTION 1.09. Section 12, Chapter 22 (S.B. 17), Acts of the
261	261	57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
262	262	Vernon's Texas Civil Statutes), is amended to read as follows:
263	263	Sec. 12. A company that offers an eligible qualified
264	264	investment that is subject to a salary reduction agreement shall
265	265	require [demonstrate annually to the retirement system] that each
266	266	of its representatives are properly licensed and qualified, by
267	267	training and continuing education, to sell and service the
268	268	company's eligible qualified investments.
269	269	SECTION 1.10. The following laws are repealed:
270	270	(1) Sections 5(b), (c), (d), and (e), Chapter 22 (S.B.
271	271	17), Acts of the 57th Legislature, 3rd Called Session, 1962
272	272	(Article 6228a-5, Vernon's Texas Civil Statutes);
273	273	(2) Sections 6(c), (d), (d-1), (d-2), (e), (f), (f-1),
274	274	(g), (h), and (i), Chapter 22 (S.B. 17), Acts of the 57th
275	275	Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
276	276	Texas Civil Statutes);
277	277	(3) Section 7, Chapter 22 (S.B. 17), Acts of the 57th
278	278	Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
279	279	Texas Civil Statutes);
280	280	(4) Section 8, Chapter 22 (S.B. 17), Acts of the 57th
281	281	Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
282	282	Texas Civil Statutes);
283	283	(5) Section 8A, Chapter 22 (S.B. 17), Acts of the 57th
284	284	Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
285	285	Texas Civil Statutes);
286	286	(6) Section 11(b), Chapter 22 (S.B. 17), Acts of the
287	287	57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
288	288	Vernon's Texas Civil Statutes); and
289	289	(7) Section 13, Chapter 22 (S.B. 17), Acts of the 57th
290	290	Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
291	291	Texas Civil Statutes).
292	292	ARTICLE 2. CONFORMING CHANGE
293	293	SECTION 2.01. Section 17.46(b), Business & Commerce Code,
294	294	as amended by Chapters 324 (S.B. 1488), 858 (H.B. 2552), and 967
295	295	(S.B. 2065), Acts of the 85th Legislature, Regular Session, 2017,
296	296	is reenacted and amended to read as follows:
297	297	(b) Except as provided in Subsection (d) of this section,
298	298	the term "false, misleading, or deceptive acts or practices"
299	299	includes, but is not limited to, the following acts:
300	300	(1) passing off goods or services as those of another;
301	301	(2) causing confusion or misunderstanding as to the
302	302	source, sponsorship, approval, or certification of goods or
303	303	services;
304	304	(3) causing confusion or misunderstanding as to
305	305	affiliation, connection, or association with, or certification by,
306	306	another;
307	307	(4) using deceptive representations or designations
308	308	of geographic origin in connection with goods or services;
309	309	(5) representing that goods or services have
310	310	sponsorship, approval, characteristics, ingredients, uses,
311	311	benefits, or quantities which they do not have or that a person has
312	312	a sponsorship, approval, status, affiliation, or connection which
313	313	the person does not;
314	314	(6) representing that goods are original or new if
315	315	they are deteriorated, reconditioned, reclaimed, used, or
316	316	secondhand;
317	317	(7) representing that goods or services are of a
318	318	particular standard, quality, or grade, or that goods are of a
319	319	particular style or model, if they are of another;
320	320	(8) disparaging the goods, services, or business of
321	321	another by false or misleading representation of facts;
322	322	(9) advertising goods or services with intent not to
323	323	sell them as advertised;
324	324	(10) advertising goods or services with intent not to
325	325	supply a reasonable expectable public demand, unless the
326	326	advertisements disclosed a limitation of quantity;
327	327	(11) making false or misleading statements of fact
328	328	concerning the reasons for, existence of, or amount of price
329	329	reductions;
330	330	(12) representing that an agreement confers or
331	331	involves rights, remedies, or obligations which it does not have or
332	332	involve, or which are prohibited by law;
333	333	(13) knowingly making false or misleading statements
334	334	of fact concerning the need for parts, replacement, or repair
335	335	service;
336	336	(14) misrepresenting the authority of a salesman,
337	337	representative or agent to negotiate the final terms of a consumer
338	338	transaction;
339	339	(15) basing a charge for the repair of any item in
340	340	whole or in part on a guaranty or warranty instead of on the value of
341	341	the actual repairs made or work to be performed on the item without
342	342	stating separately the charges for the work and the charge for the
343	343	warranty or guaranty, if any;
344	344	(16) disconnecting, turning back, or resetting the
345	345	odometer of any motor vehicle so as to reduce the number of miles
346	346	indicated on the odometer gauge;
347	347	(17) advertising of any sale by fraudulently
348	348	representing that a person is going out of business;
349	349	(18) advertising, selling, or distributing a card
350	350	which purports to be a prescription drug identification card issued
351	351	under Section 4151.152, Insurance Code, in accordance with rules
352	352	adopted by the commissioner of insurance, which offers a discount
353	353	on the purchase of health care goods or services from a third party
354	354	provider, and which is not evidence of insurance coverage, unless:
355	355	(A) the discount is authorized under an agreement
356	356	between the seller of the card and the provider of those goods and
357	357	services or the discount or card is offered to members of the
358	358	seller;
359	359	(B) the seller does not represent that the card
360	360	provides insurance coverage of any kind; and
361	361	(C) the discount is not false, misleading, or
362	362	deceptive;
363	363	(19) using or employing a chain referral sales plan in
364	364	connection with the sale or offer to sell of goods, merchandise, or
365	365	anything of value, which uses the sales technique, plan,
366	366	arrangement, or agreement in which the buyer or prospective buyer
367	367	is offered the opportunity to purchase merchandise or goods and in
368	368	connection with the purchase receives the seller's promise or
369	369	representation that the buyer shall have the right to receive
370	370	compensation or consideration in any form for furnishing to the
371	371	seller the names of other prospective buyers if receipt of the
372	372	compensation or consideration is contingent upon the occurrence of
373	373	an event subsequent to the time the buyer purchases the merchandise
374	374	or goods;
375	375	(20) representing that a guaranty or warranty confers
376	376	or involves rights or remedies which it does not have or involve,
377	377	provided, however, that nothing in this subchapter shall be
378	378	construed to expand the implied warranty of merchantability as
379	379	defined in Sections 2.314 through 2.318 and Sections 2A.212 through
380	380	2A.216 to involve obligations in excess of those which are
381	381	appropriate to the goods;
382	382	(21) promoting a pyramid promotional scheme, as
383	383	defined by Section 17.461;
384	384	(22) representing that work or services have been
385	385	performed on, or parts replaced in, goods when the work or services
386	386	were not performed or the parts replaced;
387	387	(23) filing suit founded upon a written contractual
388	388	obligation of and signed by the defendant to pay money arising out
389	389	of or based on a consumer transaction for goods, services, loans, or
390	390	extensions of credit intended primarily for personal, family,
391	391	household, or agricultural use in any county other than in the
392	392	county in which the defendant resides at the time of the
393	393	commencement of the action or in the county in which the defendant
394	394	in fact signed the contract; provided, however, that a violation of
395	395	this subsection shall not occur where it is shown by the person
396	396	filing such suit that the person neither knew or had reason to know
397	397	that the county in which such suit was filed was neither the county
398	398	in which the defendant resides at the commencement of the suit nor
399	399	the county in which the defendant in fact signed the contract;
400	400	(24) failing to disclose information concerning goods
401	401	or services which was known at the time of the transaction if such
402	402	failure to disclose such information was intended to induce the
403	403	consumer into a transaction into which the consumer would not have
404	404	entered had the information been disclosed;
405	405	(25) using the term "corporation," "incorporated," or
406	406	an abbreviation of either of those terms in the name of a business
407	407	entity that is not incorporated under the laws of this state or
408	408	another jurisdiction;
409	409	(26) selling, offering to sell, or illegally promoting
410	410	an annuity contract under Chapter 22, Acts of the 57th Legislature,
411	411	3rd Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
412	412	Statutes), with the intent that the annuity contract will be the
413	413	subject of a salary reduction agreement, as defined by that Act, if
414	414	the annuity contract is not an eligible qualified investment under
415	415	that Act [or is not registered with the Teacher Retirement System of
416	416	Texas as required by Section 8A of that Act];
417	417	(27) taking advantage of a disaster declared by the
418	418	governor under Chapter 418, Government Code, by:
419	419	(A) selling or leasing fuel, food, medicine, or
420	420	another necessity at an exorbitant or excessive price; or
421	421	(B) demanding an exorbitant or excessive price in
422	422	connection with the sale or lease of fuel, food, medicine, or
423	423	another necessity;
424	424	(28) using the translation into a foreign language of
425	425	a title or other word, including "attorney," "immigration
426	426	consultant," "immigration expert," "lawyer," "licensed," "notary,"
427	427	and "notary public," in any written or electronic material,
428	428	including an advertisement, a business card, a letterhead,
429	429	stationery, a website, or an online video, in reference to a person
430	430	who is not an attorney in order to imply that the person is
431	431	authorized to practice law in the United States;
432	432	(29) delivering or distributing a solicitation in
433	433	connection with a good or service that:
434	434	(A) represents that the solicitation is sent on
435	435	behalf of a governmental entity when it is not; or
436	436	(B) resembles a governmental notice or form that
437	437	represents or implies that a criminal penalty may be imposed if the
438	438	recipient does not remit payment for the good or service;
439	439	(30) delivering or distributing a solicitation in
440	440	connection with a good or service that resembles a check or other
441	441	negotiable instrument or invoice, unless the portion of the
442	442	solicitation that resembles a check or other negotiable instrument
443	443	or invoice includes the following notice, clearly and conspicuously
444	444	printed in at least 18-point type:
445	445	"SPECIMEN-NON-NEGOTIABLE";
446	446	(31) in the production, sale, distribution, or
447	447	promotion of a synthetic substance that produces and is intended to
448	448	produce an effect when consumed or ingested similar to, or in excess
449	449	of, the effect of a controlled substance or controlled substance
450	450	analogue, as those terms are defined by Section 481.002, Health and
451	451	Safety Code:
452	452	(A) making a deceptive representation or
453	453	designation about the synthetic substance; or
454	454	(B) causing confusion or misunderstanding as to
455	455	the effects the synthetic substance causes when consumed or
456	456	ingested;
457	457	(32) a licensed public insurance adjuster directly or
458	458	indirectly soliciting employment, as defined by Section 38.01,
459	459	Penal Code, for an attorney, or a licensed public insurance
460	460	adjuster entering into a contract with an insured for the primary
461	461	purpose of referring the insured to an attorney without the intent
462	462	to actually perform the services customarily provided by a licensed
463	463	public insurance adjuster, provided that this subdivision may not
464	464	be construed to prohibit a licensed public insurance adjuster from
465	465	recommending a particular attorney to an insured; [or]
466	466	(33) owning, operating, maintaining, or advertising a
467	467	massage establishment, as defined by Section 455.001, Occupations
468	468	Code, that:
469	469	(A) is not appropriately licensed under Chapter
470	470	455, Occupations Code, or is not in compliance with the applicable
471	471	licensing and other requirements of that chapter; or
472	472	(B) is not in compliance with an applicable local
473	473	ordinance relating to the licensing or regulation of massage
474	474	establishments; or
475	475	(34) [(33)] a warrantor of a vehicle protection
476	476	product warranty using, in connection with the product, a name that
477	477	includes "casualty," "surety," "insurance," "mutual," or any other
478	478	word descriptive of an insurance business, including property or
479	479	casualty insurance, or a surety business.
480	480	ARTICLE 3. TRANSITIONS; CONFLICT WITH OTHER LEGISLATION; EFFECTIVE
481	481	DATE
482	482	SECTION 3.01. The changes in law made by this Act to Chapter
483	483	22 (S.B. 17), Acts of the 57th Legislature, 3rd Called Session,
484	484	1962 (Article 6228a-5, Vernon's Texas Civil Statutes), apply only
485	485	to an offer of a qualified investment product under that Act that is
486	486	made on or after the effective date of this Act. An offer of a
487	487	qualified investment product that is made before the effective date
488	488	of this Act is governed by the law as it existed immediately before
489	489	the effective date of this Act, and that law is continued in effect
490	490	for that purpose.
491	491	SECTION 3.02. The change in law made by this Act to Section
492	492	10(a), Chapter 22 (S.B. 17), Acts of the 57th Legislature, 3rd
493	493	Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
494	494	Statutes), applies only to an offense committed on or after the
495	495	effective date of this Act. For purposes of this section, an
496	496	offense is committed before the effective date of this Act if any
497	497	element of the offense occurs before that date. An offense
498	498	committed before the effective date of this Act is governed by the
499	499	law in effect when the offense was committed, and the former law is
500	500	continued in effect for that purpose.
501	501	SECTION 3.03. Section 17.46(b), Business & Commerce Code,
502	502	as amended by this Act, applies only to a cause of action that
503	503	accrues on or after the effective date of this Act. A cause of
504	504	action that accrues before the effective date of this Act is
505	505	governed by the law as it existed immediately before the effective
506	506	date of this Act, and that law is continued in effect for that
507	507	purpose.
508	508	SECTION 3.04. To the extent of any conflict, this Act
509	509	prevails over another Act of the 86th Legislature, Regular Session,
510	510	2019, relating to nonsubstantive additions to and corrections in
511	511	enacted codes.
512	512	SECTION 3.05. This Act takes effect September 1, 2019.