BUSINESS & COMMERCE CODE CHAPTER 35. MISCELLANEOUS
BUSINESS & COMMERCE CODE
CHAPTER 35. MISCELLANEOUS
SUBCHAPTER A. FILING OF UTILITY SECURITY INSTRUMENTS
Text of section effective until April 1, 2009
§ 35.01. DEFINITIONS. (a) In Sections 35.02-35.08 of
this code, unless the context requires a different definition,
(1) "Security instrument" means a mortgage, deed of
trust, security agreement or other instrument executed to secure
the payment of a bond, note, or other obligation of a utility, or
instruments supplementary or amendatory thereto (including any
signed copy thereof); and
(2) "Utility" means a person engaged in this state in
the
(A) generation, transmission, or distribution
and sale of electric power;
(B) transportation, distribution and sale
through a local distribution system of natural or other gas for
domestic, commercial, industrial, or other use;
(C) ownership or operation of a pipeline for the
transmission or sale of natural or other gas, natural gas liquids,
crude oil or petroleum products to other pipeline companies,
refineries, local distribution systems, municipalities, or
industrial consumers;
(D) provision of telephone or telegraph service
to others;
(E) production, transmission, or distribution
and sale of steam or water;
(F) operation of a railroad; and
(G) the provision of sewer service to others.
(b) The definitions in Chapters 1 and 9 of this code also
apply to this subchapter.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1. Amended by Acts
1967, 60th Leg., p. 1987, ch. 735, § 10; Acts 1973, 63rd Leg., p.
1032, ch. 400, § 7, eff. Jan. 1, 1974; Acts 1989, 71st Leg., ch.
49, § 1, eff. May 3, 1989.
Text of section effective until April 1, 2009
§ 35.015. ELECTION TO BE TREATED AS A UTILITY. In this
chapter:
(1) Any person who is a utility under the definition
contained in Subdivision (2) of Subsection (a) of Section 35.01
above shall nevertheless not be considered to be a utility and
subject to the requirements and benefits of Subchapter A of this
chapter, unless and until such person files a security instrument
with the secretary of state which states conspicuously on its title
page: "This Instrument Grants A Security Interest By A Utility."
(2) An election by a utility to be covered by this
subchapter shall only be effective for the collateral covered by
the security instrument upon which the election is made and shall
not be effective for other collateral unless a similar election is
made for such collateral.
(3) Any person who executes a security instrument with
respect to which no election is made to be treated as a utility as
provided in Subsection (a) of this section shall be subject to other
applicable requirements of law pertaining to the perfection of a
lien or security interest in the collateral covered by such
security instrument.
Added by Acts 1981, 67th Leg., p. 2935, ch. 778, § 1, eff. Aug.
31, 1981. Renumbered from § 35.01A by Acts 1987, 70th Leg., ch.
167, § 5.02(8), eff. Sept. 1, 1987.
Text of section effective until April 1, 2009
§ 35.02. FILING UTILITY SECURITY INSTRUMENTS WITH
SECRETARY OF STATE; PERFECTION; NOTICE. (a) Payment of the
statutory filing fee and deposit for filing in the office of the
Secretary of State of a security instrument executed by a utility
which states conspicuously on its title page: "This Instrument
Grants A Security Interest By A Utility" shall, subject to the
provisions of Subsection (b) of this section
(1) constitute perfection of a security interest
created by the security instrument in any personal property
(including goods which are, or are to become, fixtures) in which a
security interest may be perfected by filing under Chapter 9 of this
code, located in this state, and owned by the utility when the
security instrument was executed or to be acquired by the utility
after execution of the security instrument; and
(2) be taken and held as notice to all persons of the
existence of such security instrument and the interest granted
therein, as security, in any real property (or fixtures thereon, or
to be placed thereon) located in this state and owned by the utility
when the security instrument was executed or to be acquired by the
utility after the execution of the security instrument; provided
that the security instrument shall first be proven, acknowledged or
certified as otherwise required by law for the recording of real
property mortgages.
(b) For perfection or notice to be effective as to a
particular item of property, the filed security instrument must
(1) identify the property by type, character, or
description if it is presently owned personal property (including
fixtures); provided that for such purposes, any description of
personal property or real estate is sufficient whether or not it is
specific if it reasonably identifies what is described;
(2) provide a description of the property if it is
presently owned real property; and
(3) state conspicuously on its title page: "This
Instrument Contains After-Acquired Property Provisions" if the
property is to be acquired after the execution of the security
instrument.
(c) Filing under this section satisfies any requirement of
(1) filing of the security instrument or a financing
statement in the office of a county clerk where such would otherwise
be necessary to perfect a security interest; and
(2) recording of the security instrument in the office
of a county clerk where such would otherwise cause the security
instrument to be effective and valid as to all creditors and
subsequent purchasers for valuable consideration without notice.
(d) The provisions in Chapter 9 of this code pertaining to
priorities and remedies shall apply to security interests in
personal property (including fixtures) perfected under this
section.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1. Amended by Acts
1973, 63rd Leg., p. 1032, ch. 400, § 7, eff. Jan. 1, 1974.
Text of section effective until April 1, 2009
§ 35.03. DURATION OF NOTICE. The perfection or notice
provided by any security instrument filed under Section 35.02 of
this code is effective from the date of deposit for filing until the
interest granted as security is released by the filing of a
termination statement, or a release of all or a part of the
property, signed by the secured party, and no renewal, refiling or
continuation statement shall be required to continue such
effectiveness.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1. Amended by Acts
1973, 63rd Leg., p. 1032, ch. 400, § 7, eff. Jan. 1, 1974.
Text of section effective until April 1, 2009
§ 35.04. NOTICE OF NAME CHANGE, MERGER OR
CONSOLIDATION. (a) Where a utility changes its name or merges or
consolidates with another person after the deposit for filing of a
security instrument executed by it, a written statement of the name
change, merger or consolidation shall promptly be deposited for
filing in the office of the Secretary of State. Any such statement
must be signed by the secured party and the utility, identify the
appropriate security instrument by file number, and state the name
of the utility after the name change, merger or consolidation.
(b) A security instrument deposited for filing before the
name change, merger or consolidation is not effective to provide
perfection or notice of interests granted as security under Section
35.02 of this Chapter in property acquired by the utility more than
four months after the name change, merger or consolidation, unless
the written statement is deposited for filing as required by
Subsection (a) before the expiration of that time.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1. Amended by Acts
1973, 63rd Leg., p. 1032, ch. 400, § 7, eff. Jan. 1, 1974.
Text of section effective until April 1, 2009
§ 35.05. FILING OF SECURITY INSTRUMENTS AND STATEMENT OF
NAME CHANGE, MERGER OR CONSOLIDATION BY SECRETARY OF STATE; FEES.
(a) The Secretary of State shall endorse upon any security
instrument and any statement of name change, merger, or
consolidation deposited for filing in his office, the day and hour
of receipt and the file number assigned to it. Such endorsement
shall, in the absence of other evidence, be conclusive proof of the
time and fact of deposit for filing.
(b) The Secretary of State shall retain in his office all
security instruments and statements of name change, merger, or
consolidation deposited in his office and shall file such in
adequate filing devices.
(c) The uniform fee for filing and indexing a security
instrument, or an instrument supplementary or amendatory thereto,
and a statement of name change, merger, or consolidation and for
stamping a copy of such documents, furnished by the secured party or
the utility, to show the date and place of filing shall be $25.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1. Amended by Acts
1973, 63rd Leg., p. 1032, ch. 400, § 7, eff. Jan. 1, 1974; Acts
1987, 70th Leg., ch. 1007, § 7, eff. June 19, 1987.
Text of section effective until April 1, 2009
§ 35.06. INFORMATION FROM SECRETARY OF STATE. Upon the
request of any person, the Secretary of State shall issue his
certificate showing whether there is on file on the date and hour
stated therein, any presently effective security instrument naming
a particular utility, and if there is, giving the date and hour of
filing of such instrument and the names and addresses of each
secured party therein. The uniform fee for such a certificate shall
be $10.00 if the request for the certificate is in the standard form
prescribed by the Secretary of State, and otherwise shall be
$25.00. Upon request the Secretary of State shall furnish a copy of
any filed security instrument for a uniform fee of $1.50 per page,
but not less than $5.00 nor more than $100.00 per request concerning
a particular utility.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1. Amended by Acts
1973, 63rd Leg., p. 1032, ch. 400, § 7, eff. Jan. 1, 1974; Acts
1989, 71st Leg., ch. 398, § 3, eff. Sept. 1, 1989.
Text of section effective until April 1, 2009
§ 35.07. RECORDING OF NOTICE IN COUNTY OF REAL PROPERTY;
SEPARATE INDEX BY COUNTY CLERK OF SECURITY INSTRUMENTS AND
CONTINUATION STATEMENTS. (a) If any security instrument filed
with the office of the Secretary of State under Section 35.02 of
this code grants an interest, as security, in any real property
owned by the utility, a notice of utility security instrument
affecting real property shall be recorded in the office of the
county clerk in the county where the real property is located,
stating
(1) the name of the utility which executed the
security instrument;
(2) that a security instrument affecting real property
in the county has been executed by the utility; and
(3) that such security instrument was filed, and other
security instruments may be on file, in the office of the Secretary
of State.
(b) It shall not be necessary to record a notice regarding
other security instruments executed by the utility, and the notice
recorded under Subsection (a) of this section shall be sufficient
to provide notice of any and all other security instruments
(1) executed by the utility;
(2) filed in the office of the Secretary of State; and
(3) granting an interest, as security, in any real
property, and fixtures thereto, located in the county where such
notice was recorded.
(c) Notices recorded under Subsection (a) of this section
shall be recorded and indexed by the county clerk in the same
records and indices as are mortgages on real property.
(d) The county clerk shall maintain a separate index of
utility security instruments and continuation statements recorded
under prior law.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1. Amended by Acts
1973, 63rd Leg., p. 1032, ch. 400, § 7, eff. Jan. 1, 1974.
Text of section effective until April 1, 2009
§ 35.08. PRIOR PERFECTED LIENS; REFILING WITH SECRETARY
OF STATE. The perfection or notice provided by any security
instrument covering any real or personal property located in this
state which was heretofore filed or recorded in the office of the
Secretary of State or the office of the county clerk of any county
in this state continues effective until it would have lapsed under
prior law or January 1, 1978, whichever occurs first; but it may be
filed or refiled prior to such time in the office of the Secretary
of State as provided in Section 35.02 of this code, and such filing
or refiling shall continue the effectiveness as provided in
Sections 35.02 and 35.03 of this code.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1. Amended by Acts
1973, 63rd Leg., p. 1032, ch. 400, § 7, eff. Jan. 1, 1974.
Text of section effective until April 1, 2009
§ 35.09. REPEALER. The following act and all other acts
and parts of acts inconsistent herewith are hereby repealed:
Article 6645, Revised Civil Statutes of Texas, 1925, as
amended.
Added by Acts 1973, 63rd Leg., p. 1032, ch. 400, § 7, eff. Jan. 1,
1974.
SUBCHAPTER B. DUTIES OF RAILROAD COMMISSION AND CRIMINAL OFFENSES
INVOLVING BILLS OF LADING
Text of section effective until April 1, 2009
§ 35.14. DEFINITIONS. In Sections 35.15-35.21 of this
code, unless the context requires a different definition,
(1) "agent" includes officer, employee, and receiver;
(2) "airbill" means a document serving for air
transportation as a bill of lading does for marine or rail
transportation, and includes an air consignment note or air
waybill;
(3) "bill of lading" means a document evidencing the
receipt of goods for shipment issued by a person engaged in the
business of transporting or forwarding goods, and includes an
airbill;
(4) "common carrier" in Sections 35.15-35.17 of this
code does not include a pipeline company or express company; and
(5) "goods" means all things which are treated as
movable for the purposes of a contract of storage or
transportation.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.15. DUTIES OF RAILROAD COMMISSION. (a) The
railroad commission shall
(1) prescribe forms, terms, and conditions for
authenticating, certifying, or validating bills of lading issued by
a common carrier;
(2) regulate the manner of issuing bills of lading by a
common carrier; and
(3) take other action necessary to carry out the
purposes of Chapter 7 of this code.
(b) After giving reasonable notice to interested common
carriers and to the public, the railroad commission may amend a rule
promulgated under Subsection (a) of this section.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.16. AGENT WRONGFULLY FAILING TO ISSUE BILL OF
LADING. (a) An agent of a common carrier may not after lawful
demand fail or refuse to issue a bill of lading in accordance with
Chapter 7 of this code or a rule of the railroad commission.
(b) An agent who violates a provision of Subsection (a) of
this section is guilty of a misdemeanor and upon conviction is
punishable by imprisonment in the county jail for not more than six
months or by a fine of not more than $200 or by both.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.17. AGENT ISSUING FRAUDULENT BILL OF LADING.
(a) An agent of a common carrier may not with intent to defraud a
person
(1) issue a bill of lading;
(2) misdescribe in a bill of lading goods or their
quantity described in the bill of lading; or
(3) issue a bill of lading without authority.
(b) An agent who violates a provision of Subsection (a) of
this section is guilty of a felony and upon conviction is punishable
by imprisonment in the penitentiary for not less than 2 nor more
than 10 years.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.18. AGENT ISSUING DUPLICATE ORDER BILL OF LADING.
(a) Except where customary in overseas transportation, an agent of
a common carrier may not knowingly issue or aid in issuing an order
bill of lading in duplicate or in a set of parts.
(b) An agent who violates a provision of Subsection (a) of
this section is guilty of a felony and upon conviction is punishable
by imprisonment in the penitentiary for not more than five years and
by a fine of not more than $5,000.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.20. INDUCING ISSUANCE OF FRAUDULENT BILL OF
LADING. (a) A person may not with intent to defraud induce an
agent of a common carrier to
(1) issue to him a bill of lading; or
(2) materially misrepresent in a bill of lading issued
on behalf of the common carrier the quantity of goods described in
the bill of lading.
(b) A person who violates a provision of Subsection (a) of
this section is guilty of a felony and upon conviction is punishable
by imprisonment in the penitentiary for not less than two nor more
than five years.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.21. NEGOTIATING FRAUDULENT BILL OF LADING. (a) A
person may not with intent to defraud negotiate or transfer a bill
of lading
(1) issued in violation of Chapter 7 of this code; or
(2) containing a false, material statement of fact.
(b) A person who violates a provision of Subsection (a) of
this section is guilty of a felony and upon conviction is punishable
by imprisonment in the penitentiary for not more than 10 years.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
SUBCHAPTER C. CRIMINAL OFFENSES INVOLVING WAREHOUSE RECEIPTS
Text of section effective until April 1, 2009
§ 35.27. DEFINITIONS. In Sections 35.28-35.33 of this
code, unless the context requires a different definition,
(1) "goods" means all things which are treated as
movable for the purposes of a contract of storage or
transportation;
(2) "issue" includes aiding in the issue of;
(3) "warehouseman" means a person engaged in the
business of storing goods for hire; and
(4) "warehouse receipt" means a receipt issued by a
person engaged in the business of storing goods for hire.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.28. WAREHOUSEMAN ISSUING FRAUDULENT WAREHOUSE
RECEIPT. (a) A warehouseman, his officer, agent, or employee, may
not with intent to defraud issue a warehouse receipt which contains
a false statement of fact.
(b) A warehouseman, his officer, agent, or employee, who
violates Subsection (a) of this section is guilty of a misdemeanor
and upon conviction is punishable by imprisonment in the county
jail for not more than one year or by a fine of not more than $1,000
or by both.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.29. WAREHOUSEMAN FAILING TO STATE HIS OWNERSHIP OF
GOODS ON RECEIPT. (a) A warehouseman, his officer, agent, or
employee, may not knowingly issue a negotiable warehouse receipt
describing goods the warehouseman owns and is storing (whether the
warehouseman owns them solely, jointly, or in common) unless he
states the warehouseman's ownership on the receipt.
(b) A warehouseman, his officer, agent, or employee, who
violates Subsection (a) of this section is guilty of a misdemeanor
and upon conviction is punishable by imprisonment in the county
jail for not more than one year or by a fine of not more than $1,000.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.30. WAREHOUSEMAN ISSUING WAREHOUSE RECEIPT WITHOUT
GOODS. (a) A warehouseman, his officer, agent, or employee, may
not issue a warehouse receipt if he knows at the time of issuance
that the goods described in the warehouse receipt are not under his
actual control.
(b) A warehouseman, his officer, agent, or employee, who
violates Subsection (a) of this section is guilty of a felony and
upon conviction is punishable by imprisonment in the penitentiary
for not more than five years or by a fine of not more than $5,000 or
by both.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.31. WAREHOUSEMAN ISSUING DUPLICATE WAREHOUSE
RECEIPT. (a) A warehouseman, his officer, agent, or employee, may
not issue a duplicate or additional negotiable warehouse receipt
for goods if he knows at the time of issuance that a previously
issued negotiable warehouse receipt describing those goods is
outstanding and uncancelled.
(b) Subsection (a) of this section does not apply if
(1) the word "Duplicate" is plainly placed on the
duplicate or additional negotiable warehouse receipt; or
(2) goods described in the outstanding and uncancelled
negotiable warehouse receipt were delivered pursuant to court order
on proof that the receipt was lost or destroyed.
(c) A warehouseman, his officer, agent, or employee, who
violates Subsection (a) of this section is guilty of a felony and
upon conviction is punishable by imprisonment in the penitentiary
for not more than five years or by a fine of not more than $5,000 or
by both.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.32. WAREHOUSEMAN WRONGFULLY DELIVERING GOODS.
(a) A warehouseman, his officer, agent, or employee, may not
knowingly deliver goods described in a negotiable warehouse receipt
and stored with him unless the receipt is surrendered to him at or
before the time he delivers the goods.
(b) Subsection (a) of this section does not apply if the
goods are
(1) delivered pursuant to court order on proof that
the negotiable warehouse receipt describing them was lost or
destroyed;
(2) lawfully sold to satisfy a warehouseman's lien; or
(3) disposed of because of their perishable or
hazardous nature.
(c) A warehouseman, his officer, agent, or employee, who
violates Subsection (a) of this section is guilty of a misdemeanor
and upon conviction is punishable by imprisonment in the county
jail for not more than one year or by a fine of not more than $1,000
or by both.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.33. FAILING TO DISCLOSE OWNERSHIP OF GOODS. (a) A
person who obtains a negotiable warehouse receipt describing goods
he does not own, or goods subject to a lien, may not with intent to
defraud negotiate the receipt for value without disclosing his lack
of ownership or the lien's existence.
(b) A person who violates a provision of Subsection (a) of
this section is guilty of a misdemeanor and upon conviction is
punishable by imprisonment in the county jail for not more than one
year or by a fine of not more than $1,000 or by both.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
SUBCHAPTER D. MISCELLANEOUS
Text of section effective until April 1, 2009
§ 35.39. DAMAGES ON PROTESTED, OUT-OF-STATE DRAFT. The
holder of a protested draft is entitled to damages equalling 10
percent of the amount of the draft, plus interest and costs of suit,
if the
(1) draft was drawn by a merchant in this state on his
agent or factor outside this state; and
(2) drawer's or indorser's liability on the draft has
been fixed.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.395. DELIVERY OF CHECK FORM. (a) In this section:
(1) "Addressee" means a person to whom a check form is
sent.
(2) "Check form" means a device for the transmission
or payment of money that:
(A) is not a negotiable instrument under Section
3.104;
(B) if completed would be a check as that term is
described by Section 3.104; and
(C) is printed with information relating to the
financial institution on which the completed check may be drawn.
(3) "Courier" means any entity that delivers parcels
for a fee.
(4) "Check form provider" means a business that
provides check forms to a customer for a personal or business
account.
(b) When an addressee requests of a check form provider,
courier delivery of a check form with signature required, and such
service is available in the delivery area of the addressee, the
entity making the arrangement for courier delivery pursuant to the
request of the addressee must provide the addressee with the option
to require that a signature of the addressee, or the representative
of the addressee, be obtained on delivery. The option to require
such a signature may be provided on a printed check form order form,
on an electronic check form order form where check form orders are
offered on the Internet, to an electronic mail address established
for such purpose by the entity making the offer, or by another
method reasonably calculated to effectively communicate the
addressee's intent.
(c) An entity making the arrangement for the courier
delivery of a check form to an addressee pursuant to the provisions
of Subsection (b) shall notify the courier of the check form that
the signature of the addressee is required for delivery under
Subsection (b).
(d) If the addressee suffers a pecuniary loss through the
use of check forms stolen at the time of delivery to the addressee,
a civil penalty of up to a maximum amount of $1,000 per delivery may
be levied upon:
(1) an entity that violates Subsection (b) or (c); or
(2) a courier who is properly notified under
Subsection (c) that a signature is required for delivery, and
delivers the check form without obtaining a signature of the
addressee or a representative of the addressee.
(e) The attorney general may bring suit to recover a civil
penalty imposed under this section. The attorney general may
recover reasonable expenses incurred in obtaining a civil penalty
under this subsection, including court costs, reasonable
attorney's fees, investigative costs, witness fees, and deposition
expenses.
Added by Acts 2005, 79th Leg., Ch. 1202, § 1, eff. June 1, 2006.
Text of section effective until April 1, 2009
§ 35.40. IDENTIFICATION OF PATENT RIGHT NOTE OR LIEN.
(a) A note or lien evidencing or securing the purchase price for a
patent right or patent right territory must contain on its face a
statement that it was given for a patent right or patent right
territory.
(b) The statement required by Subsection (a) of this section
(1) is notice to a subsequent purchaser of the note or
lien of all equities between the original parties to the note or
lien; and
(2) subjects a subsequent holder of the note or lien to
all defenses available against the original parties to the note or
lien.
(c) A person selling a patent right or patent right
territory may not take a note or lien evidencing or securing the
purchase price for it without placing on the face of the note or
lien the statement required by Subsection (a) of this section.
(d) A person who violates Subsection (c) of this section is
guilty of a misdemeanor and upon conviction is punishable by a fine
of not less than $25 nor more than $200.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.
Text of section effective until April 1, 2009
§ 35.41. DESTRUCTION OF DIE, MOLD, OR FORM. (a) In
this Act:
(1) "Owner" means an individual, firm, or corporation
that holds title to a die, mold, or form.
(2) "Molder" means an individual, firm, or corporation
that makes a die, mold, or form, or that uses a die, mold, or form to
make another product.
(b) After the three-year period beginning on the day on
which a die, mold, or form was last used or, if never used, on the
day on which it was made, a molder in possession of the die, mold, or
form may send notice to its owner of the molder's intent to destroy
the die, mold, or form. Notice must be sent by registered mail,
return receipt requested, to the last known address of the owner.
(c) If, before the 121st day after the day that the notice
sent in accordance with Subsection (b) of this section is received,
the owner does not take possession of the die, mold, or form or make
arrangements with the molder for its removal or continued storage,
the molder may destroy the die, mold, or form.
(d) On destruction of a die, mold, or form in accordance
with this section, the owner's title to it ends.
(e) If a molder satisfies the requirements of this section,
the molder may not be held criminally or civilly liable for the
destruction of the die, mold, or form.
(f) This section does not prevent a molder that holds title
to a die, mold or form from destroying it at any time.
Added by Acts 1983, 68th Leg., p. 4598, ch. 778, § 1, eff. Aug.
29, 1983.
Text of section effective until April 1, 2009
§ 35.42. REDUCTION OF VALUE OR EXPIRATION OF STORED VALUE
CARD. (a) In this section:
(1) "Record" has the meaning assigned by Section
43.002, and includes a record that contains a microprocessor chip,
magnetic strip, or other means of storing information.
(2) "Stored value card" means a record that evidences
a promise made for monetary consideration by the seller or issuer of
the record that goods or services will be provided to the owner of
the record in the value shown in the record, that is prefunded, and
the value of which is reduced on redemption. The term includes a
gift card or gift certificate.
(3) "Use" of a stored value card includes a whole or
partial redemption of or adding value to the card.
(b) This section does not apply to a stored value card that:
(1) is distributed by the issuer to a person under an
awards, rewards, loyalty, incentive, rebate or promotional program
and not issued or reloaded in exchange for money tendered by the
cardholder;
(2) is sold below face value or donated to:
(A) an employee of the seller or issuer;
(B) a nonprofit or charitable organization; or
(C) an educational institution, for fund-raising
purposes;
(3) is issued by a financial institution acting as a
financial agent of the United States or this state;
(4) is issued as a prepaid calling card by a prepaid
calling card company regulated under Section 55.253, Utilities
Code;
(5) does not expire and for which the seller does not
charge a fee other than a fee described in Subsection (d); or
(6) is issued by an air carrier holding a certificate
of public convenience and necessity under Title 49, United States
Code.
(c) This section does not apply to a stored value card
issued by a federally insured financial institution, as defined by
Section 201.101, Finance Code, for which the financial institution
is primarily liable as the issuing principal.
(d) If disclosed as provided by Subsection (f), the issuer
of a stored value card may impose and collect a reasonable handling
fee in connection with the issuance of or adding of value to the
card, a reasonable access fee for a card transaction conducted at an
unmanned teller machine, as defined by Section 59.301, Finance
Code, and a reasonable reissue or replacement charge if a lost or
expired card is reissued or replaced.
(e) The issuer of a stored value card may impose or collect a
periodic fee or other charge that causes the unredeemed balance of
the card to decrease over time only if the fee is reasonable, is not
assessed until after the first anniversary of the date the card is
sold or issued, and is disclosed as provided by Subsection (f).
(f) An expiration date or policy, fee, or other material
restriction or contract term applicable to a stored value card must
be clearly and conspicuously disclosed to a person at the time the
card is sold or issued to the person to enable the person to make an
informed decision before the person purchases the card. A
disclosure regarding expiration or a periodic fee that reduces the
unredeemed value of the stored value card must also be legibly
printed on the card. A stored value card that is sold without the
disclosure as required by this section of an expiration date or
policy, fee, or other material restriction or contract term
applicable to the card is valid until redeemed or replaced.
(g) This section does not create a cause of action against a
person who issues or sells a stored value card.
Added by Acts 2005, 79th Leg., Ch. 81, § 1, eff. September 1,
2005.
§ 35.43. CONSUMER REBATE RESPONSE AND GRACE PERIOD FOR
CORRECTIONS. (a) In this section:
(1) "Consumer" means a person who obtains a product or
service that is to be used primarily for personal, business,
family, or household purposes.
(2) "Consumer rebate" means an offer to a consumer of
cash, credit, or credit toward future purchases that is made in
connection with a sale of a good or service to the consumer, is in an
amount of $10 or more, and requires the consumer to mail or
electronically submit a rebate request after the sale is
completed. The term does not include:
(A) any promotion or incentive that is offered by
a manufacturer to another company or organization that is not the
consumer to help promote or place the product or service;
(B) a rebate that is redeemed at the time of
purchase;
(C) any discount, cash, credit, or credit toward
a future purchase that is automatically provided to a consumer
without the need to submit a request for redemption;
(D) a rebate that is applied to a bill that the
consumer becomes obligated to pay after the date the purchase is
made;
(E) any refund that may be given to a consumer in
accordance with a manufacturer or retailer's return, guarantee,
adjustment, or warranty policies; or
(F) any manufacturer or retailer's frequent
shopper customer reward program.
(3) "Properly completed" means that the consumer
submitted the required information and documentation in the manner
and by the deadline specified in the rebate offer and otherwise
satisfied the terms and conditions of the rebate offer.
(b) Except as provided by Subsection (c), a person,
including a manufacturer or retailer, who offers a rebate shall
mail the amount of the rebate to the consumer or electronically pay
the consumer the amount of the rebate within the time period
promised in the rebate information provided to the consumer, or if
silent, not later than the 30th day after the date the person
receives a properly completed rebate request.
(c) If a consumer rebate offer is contingent on the consumer
continuing to purchase a service for a minimum length of time, the
time period in Subsection (b) begins on the later of:
(1) the date the consumer submits the rebate request;
or
(2) the expiration date of the service period.
(d) If the person offering the rebate receives a rebate
request that is timely submitted but not properly completed, the
person shall:
(1) process the rebate in the manner provided by
Subsection (b) as if the rebate request were properly completed; or
(2) notify the consumer, not later than the date
specified by Subsection (b), of the reasons that the rebate request
is not properly completed and the consumer's right to correct the
deficiency within 30 days after the date of the notification.
(e) The notification under Subsection (d)(2) must be by
mail, except that notification may be by e-mail if the consumer has
agreed to be notified by e-mail.
(f) If the consumer corrects the deficiency stated in the
notification under Subsection (d)(2) before the 31st day after the
postmark date of the person's mailed notification to the consumer
or the date the e-mail is received, if applicable, the person shall
process the rebate in the manner provided by Subsection (b) for a
properly completed request.
(g) This section does not impose any obligation on a person
to pay a rebate to any consumer who is not eligible under the terms
and conditions of the rebate offer or has not satisfied all of the
terms and conditions of the rebate offer, if the person offering the
rebate has complied with Subsections (d) and (e).
(h) A person offering a rebate has the right to reject a
rebate request from a consumer who the person determines:
(1) is attempting to commit fraud;
(2) has already received the offered rebate; or
(3) is submitting proof of purchase that is not
legitimate.
(i) A person making a determination under Subsection (h)
shall notify the consumer within the time period provided by
Subsection (d) that the person is considering rejecting, or has
rejected, the rebate request and shall instruct the consumer of any
actions that the consumer may take to cure the deficiency.
(j) If the person offering a rebate erroneously rejects a
properly completed rebate request, the person shall pay the
consumer as soon as practicable, but not later than 30 days, after
the date the person learns of the error.
(k) For the purposes of this section, if a person who offers
a rebate uses an independent entity to process the rebate, an act of
the entity is considered to be an act of the person and receipt of a
rebate request by the entity is considered receipt of the request by
the person.
(l) A violation of this section is a deceptive trade
practice in addition to the practices described by Subchapter E,
Chapter 17, and is actionable by a consumer under that
subchapter. Claims related to more than one consumer may not be
joined in a single action brought for an alleged violation of this
subchapter, unless all parties agree.
(m) A court may not certify an action brought under this
section as a class action.
(n) A violation of this section is subject to an action by
the office of the attorney general as provided by Section 17.46(a).
Added by Acts 2007, 80th Leg., R.S., Ch. 123, § 1, eff. September
1, 2007.
Text of section effective until April 1, 2009
§ 35.44. STORE LEASE CONTRACTS. (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 regardless of whether
it was executed before or after this section took effect.
Added by Acts 1985, 69th Leg., ch. 220, § 4, eff. Sept. 1, 1985.
Renumbered from § 35.42 by Acts 1987, 70th Leg., ch. 167, §
5.01(a)(3), eff. Sept. 1, 1987.
Text of section effective until April 1, 2009
§ 35.45. DELIVERY OF UNSOLICITED GOODS. (a) Unless
otherwise agreed, if unsolicited goods are delivered to a person,
the person:
(1) is entitled to refuse to accept delivery of the
goods; and
(2) is not required to return the goods to the sender.
(b) If unsolicited goods are either addressed to or intended
for the recipient, the goods are considered a gift to the recipient,
who may use them or dispose of them in any manner without obligation
to the sender.
(c) Unsolicited goods received due to a bona fide mistake
must be returned, but the burden of proof of the error is on the
sender.
(d) This section does not apply to goods substituted for
goods ordered or solicited by the recipient.
Added by Acts 1985, 69th Leg., ch. 959, § 7, eff. Sept. 1, 1985.
Renumbered from § 35.42 by Acts 1987, 70th Leg., ch. 167, §
5.01(a)(3), eff. Sept. 1, 1987.
Text of section effective until April 1, 2009
§ 35.455. DISCLOSURES REQUIRED FOR CERTAIN CONSUMER
CONTRACTS SOLICITED BY MAIL. (a) Unless the context requires a
different definition, the definitions of Chapter 3 apply to this
section.
(b) This section applies only to a person that solicits
business in this state by mailing an individual a check or draft
payable to the individual. This section does not apply to a
financial institution as defined in Section 201.101, Finance Code,
or an authorized lender as defined in Section 341.001, Finance
Code, that sends a check or draft to an existing or prospective
account holder authorizing the existing or prospective account
holder to access an extension of credit.
(c) A person that makes an offer that the recipient may
accept by endorsing and negotiating the check or draft shall
clearly and conspicuously disclose on the check or draft, next to
the place for endorsement, that by signing and negotiating the
document the depositor agrees to pay for future goods or services as
a result of this contract.
(d) If a person makes an offer under Subsection (c) that
includes a free membership period, trial period, or other incentive
with a time limit, and if the offer results in a contract unless the
recipient cancels, rescinds, or revokes the offer by the end of the
time period, the offeror shall send notice to the recipient, at
least two weeks before debiting any account, of the recipient's
obligation to cancel, rescind, revoke, or otherwise terminate the
recipient's acceptance. The notice must be clear and
conspicuous. If the offeror bills the consumer by mailing an
invoice, notice may be included with the invoice.
(e) An offer is void if the offeror:
(1) does not make the disclosure required by
Subsection (c);
(2) does not give notice as required by Subsection
(d), if applicable; or
(3) provides an incentive with a time limit, including
a free trial or membership period, that is less than two weeks.
(f) If an offer described by Subsection (c) does not contain
the required disclosure, or is not followed by any notice required
by Subsection (d), or if the offeror fails to honor the recipient's
request to cancel made under the terms of the offer or as required
by Subsection (d), the delivery of any goods or services to the
recipient does not operate to form a contract between the offeror
and the recipient.
(g) A violation of this section is a deceptive trade
practice in addition to the practices described by Subchapter E,
Chapter 17, and is actionable under that subchapter.
Added by Acts 2005, 79th Leg., Ch. 596, § 1, eff. September 1,
2005.
Text of section effective until April 1, 2009
§ 35.46. ATTACHING MOTOR VEHICLE DEALER'S NAME TO
VEHICLE. (a) In this section:
(1) "Motor vehicle" has the meaning assigned by
Section 541.201, Transportation Code.
(2) "Center high-mounted stop lamp" means a device
that is mounted on the rear center line of a motor vehicle either in
or on the rear window or within six inches from the rear window of
the vehicle for the purpose of emitting a light when the vehicle's
brakes are applied.
(3) "Overlay" means a transparent or semi-transparent
covering placed over a center high-mounted stop lamp on which is
impressed or imprinted a name, trade name, logotype, or other
message that can be read by a person behind the vehicle when the
lamp is illuminated.
(b) A person in the business of selling motor vehicles may
not sell a motor vehicle with a center high-mounted stop lamp over
which an overlay has been placed.
(c) A person who violates this section commits an offense.
An offense under this section is a Class C misdemeanor.
Added by Acts 1987, 70th Leg., ch. 858, § 1, eff. Sept. 1, 1987.
Amended by Acts 1997, 75th Leg., ch. 165, § 30.178, eff. Sept. 1,
1997.
Text of section effective until April 1, 2009
§ 35.47. CERTAIN ELECTRONIC COMMUNICATIONS MADE FOR
PURPOSE OF SALES. (a) A person may not make a telephone call or
use an automatic dial announcing device to make a telephone call for
the purpose of making a sale if:
(1) the person making the call or using the device
knows or should have known that the called number is a mobile
telephone for which the called person will be charged for that
specific call; and
(2) the called person has not given consent to make
such a call to the person calling or using the device or to the
business enterprise for which the person is calling or using the
device.
(b) A person may not make or cause to be made a transmission
for the purpose of a solicitation or sale to a facsimile recording
device or other telecopier for which the person or entity receiving
the transmission will be charged for the transmission, unless the
person or entity receiving the transmission has given, prior to the
transmission, consent to make or cause to be made the transmission.
(c) A person may not make or cause to be made a transmission
for the purpose of a solicitation or sale to a facsimile recording
device after 11 p.m. and before 7 a.m.
(d) On complaint of a called person that Subsection (a),
(b), or (c) of this section has been violated, the county or
district attorney of the county in which the person resides shall
investigate the complaint and file charges if appropriate. A
telephone company serving the caller or called person is not
responsible for investigating a complaint or keeping records
relating to this section.
(e) A person who violates Subsection (a), (b), or (c) of
this section commits an offense. An offense under this section is a
Class C misdemeanor.
(f) A person who receives a communication that violates 47
U.S.C. Section 227, a regulation adopted under that provision, or
this section may bring an action against the person who originates
the communication in a court of this state for an injunction,
damages in the amount provided by this subsection, or both. A
plaintiff prevailing in an action for damages under this subsection
is entitled to the greater of $500 for each violation or the
person's actual damages, except that the court may increase the
amount of the award to not more than the greater of $1,500 for each
violation or three times the person's actual damages if the court
finds that the defendant committed the violation knowingly or
intentionally.
Added by Acts 1989, 71st Leg., ch. 783, § 1, eff. Sept. 1, 1989.
Amended by Acts 1999, 76th Leg., ch. 635, § 1, eff. Sept. 1,
1999; Acts 2001, 77th Leg., ch. 1429, § 2, eff. Jan. 1, 2002.
Text of section effective until April 1, 2009
§ 35.48. RETENTION AND DISPOSAL OF BUSINESS RECORDS.
(a) In this section:
(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.
(1-a) "Personal identifying information" means an
individual's first name or initial and last name in combination
with any one or more of the following items:
(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 print, and retina or iris image;
(E) unique electronic identification number,
address, or routing code;
(F) telecommunication access device, including
debit and credit card information; or
(G) financial institution account number or any
other financial information.
(2) "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) photograph, including an enlargement or
miniature;
(C) mechanical or electronic rerecording;
(D) chemical reproduction;
(E) digitized optical image; or
(F) another technique that accurately reproduces
the original.
(3) "Telecommunication access device" has the meaning
assigned by Section 32.51, Penal Code.
(b) A business record required to be kept by state law may be
destroyed at any time after the third anniversary of the date the
record was created unless a law or regulation applicable to the
business record prescribes a different retention period or
procedure for disposal.
(c) A state law requiring retention of a business record is
satisfied by retention of a reproduction of the business record.
(d) 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 to make it
unreadable or undecipherable.
(e) A business is considered to comply with Subsection (d)
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 Subsection
(d).
(f) A business that does not dispose of a business record of
a customer in the manner required by Subsection (d) is liable for a
civil penalty of up to $500 for each 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.
(g) A business that modifies a record as required by
Subsection (d) in good faith is not liable for a civil penalty under
Subsection (f) if the record is reconstructed, in whole or in part,
through extraordinary means.
(h) Subsection (d) does not require a business to modify a
record if:
(1) the business is required to retain the record
under other law; or
(2) the record is historically significant and:
(A) there is no potential for identity theft or
fraud while the record is in the custody of the business; or
(B) the record is transferred to a professionally
managed historical repository.
(i) Subsection (d) 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.
Added by Acts 1989, 71st Leg., ch. 955, § 1, eff. June 15, 1989.
Renumbered from § 35.47 by Acts 1990, 71st Leg., 6th C.S., ch.
12, § 2(2), eff. Sept. 6, 1990. Amended by Acts 1991, 72nd Leg.,
ch. 472, § 1, eff. Aug. 26, 1991; Acts 1995, 74th Leg., ch. 735,
§ 3, eff. Sept. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch. 935, § 1, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch. 935, § 2, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch. 935, § 3, eff. September 1, 2005.
Text of section effective until April 1, 2009
§ 35.49. OTHER REMEDIES. (a) A person who sells,
distributes, or manufactures cigarettes and who sustains direct
economic or commercial injury as a result of a violation of Section
154.0415, Tax Code, or Section 48.015, Penal Code, may bring an
action in good faith for appropriate injunctive relief.
(b) The remedy provided by this section is in addition to
any other remedy provided by law.
Added by Acts 2001, 77th Leg., ch. 1104, § 5, eff. Sept. 1, 2001.
Text of section effective until April 1, 2009
§ 35.50. BIOMETRIC IDENTIFIER. (a) In this section,
"biometric identifier" means a retina or iris scan, fingerprint,
voiceprint, or record of hand or face geometry.
(b) A person may not capture a biometric identifier of an
individual for a commercial purpose unless the person:
(1) informs the individual before capturing the
biometric identifier; and
(2) receives the individual's consent to capture the
biometric identifier.
(c) A person who possesses a biometric identifier of an
individual:
(1) may not sell, lease, or otherwise disclose the
biometric identifier to another person unless:
(A) the individual consents to the disclosure;
(B) the disclosure completes a financial
transaction requested or authorized by the individual;
(C) the disclosure is required or permitted by a
federal statute or by a state statute other than Chapter 552,
Government Code; or
(D) the disclosure is made by or to a law
enforcement agency for a law enforcement purpose; and
(2) shall store, transmit, and protect from disclosure
the biometric identifier using reasonable care and in a manner that
is the same as or more protective than the manner in which the
person stores, transmits, and protects the person's other
confidential information.
(d) A person who violates this section is subject to a civil
penalty of not more than $25,000 for each violation. The attorney
general may institute an action to recover the civil penalty.
Added by Acts 2001, 77th Leg., ch. 634, § 1, eff. Sept. 1, 2001.
Text of section effective until April 1, 2009
§ 35.51. RIGHTS OF PARTIES TO CHOOSE LAW APPLICABLE TO
CERTAIN TRANSACTIONS. (a) In this section:
(1) "Transaction" includes more than one
substantially similar or related transaction entered into
contemporaneously and having at least one common party.
(2) "Qualified transaction" means a transaction under
which a party:
(A) pays or receives, or is obligated to pay or
entitled to receive, consideration with an aggregate value of at
least $1,000,000; or
(B) lends, advances, borrows, or receives, or is
obligated to lend or advance or is entitled to borrow or receive,
funds or credit with an aggregate value of at least $1,000,000.
(b) Except as provided by Subsection (e) or (f) of this
section or Section 35.52 of this code, if the parties to a qualified
transaction agree in writing that the law of a particular
jurisdiction governs an issue relating to the transaction,
including the validity or enforceability of an agreement relating
to the transaction or a provision of the agreement, and the
transaction bears a reasonable relation to that jurisdiction, the
law, other than conflict of laws rules, of that jurisdiction
governs the issue regardless of whether the application of that law
is contrary to a fundamental or public policy of this state or of
any other jurisdiction.
(c) Except as provided by Subsection (f) of this section and
Section 35.52 of this code, if the parties to a qualified
transaction agree in writing that the law of a particular
jurisdiction governs the interpretation or construction of an
agreement relating to the transaction or a provision of the
agreement, the law, other than conflict of laws rules, of that
jurisdiction governs that issue regardless of whether the
transaction bears a reasonable relation to that jurisdiction.
(d) For purposes of this section, a transaction bears a
reasonable relation to a particular jurisdiction if the
transaction, the subject matter of the transaction, or a party to
the transaction is reasonably related to that jurisdiction. A
transaction bears a reasonable relation to a particular
jurisdiction if:
(1) a party to the transaction is a resident of that
jurisdiction;
(2) a party to the transaction has its place of
business or, if that party has more than one place of business, its
chief executive office or an office from which it conducts a
substantial part of the negotiations relating to the transaction,
in that jurisdiction;
(3) all or part of the subject matter of the
transaction is located in that jurisdiction;
(4) a party to the transaction is required to perform a
substantial part of its obligations relating to the transaction,
such as delivering payments, in that jurisdiction; or
(5) a substantial part of the negotiations relating to
the transaction, and the signing of an agreement relating to the
transaction by a party to the transaction, occurred in that
jurisdiction.
(e) Except as provided by Subsection (f) of this section or
Section 35.52 of this code, if:
(1) the parties to a qualified transaction agree in
writing that the law of a particular jurisdiction governs the
validity or enforceability of an agreement relating to the
transaction or a provision of the agreement;
(2) the transaction bears a reasonable relation to
that jurisdiction; and
(3) a term of the agreement or of that provision is
invalid or unenforceable under the law, other than conflict of laws
rules, of that jurisdiction but is valid or enforceable under the
law, other than conflict of laws rules, of the jurisdiction that has
the most significant relation to the transaction, the subject
matter of the transaction, and the parties, then:
(A) the law, other than conflict of laws rules,
of the jurisdiction that has the most significant relation to the
transaction, the subject matter of the transaction, and the parties
governs the validity or enforceability of that term; and
(B) the law, other than conflict of laws rules,
of the jurisdiction that the parties agree would govern the
validity or enforceability of that agreement or of that provision
governs the validity or enforceability of the other terms of that
agreement or provision.
(f) Subsections (b)-(e) of this section do not apply to the
determination of the law that governs:
(1) whether a transaction transfers or creates an
interest in real property for security purposes or otherwise, the
nature of an interest in real property that is transferred or
created by a transaction, the method for foreclosure of a lien on
real property, the nature of an interest in real property that
results from foreclosure, or the manner and effect of recording or
failing to record evidence of a transaction that transfers or
creates an interest in real property;
(2) the validity of a marriage or an adoption, whether
a marriage has been terminated, or the effect of a marriage on
property owned by a spouse at the time of the marriage or acquired
by either spouse during the marriage;
(3) whether an instrument is a will, the rights of
persons under a will, or the rights of persons in the absence of a
will; or
(4) an issue that another statute of this state, or a
statute of the United States, provides is governed by the law of a
particular jurisdiction.
(g) Subsections (b)-(e) of this section apply to the
determination of the law that governs an issue relating to a
transaction involving real property other than those specified in
Subsection (f)(1) of this section, including the validity or
enforceability of an indebtedness incurred in consideration for the
transfer of, or the payment of which is secured by a lien on, real
property.
Added by Acts 1993, 73rd Leg., ch. 570, § 13, eff. Sept. 1, 1993.
Text of section effective until April 1, 2009
§ 35.52. LAW APPLICABLE TO CONSTRUCTION CONTRACTS.
(a) If a contract is principally for the construction or repair of
improvements to real property located in this state and the
contract contains a provision that makes the contract or any
conflict arising under it subject to the law of another state, to
litigation in the courts of another state, or to arbitration in
another state, that provision is voidable by the party that is
obligated by the contract to perform the construction or repair.
(b) A contract is principally for the construction or repair
of improvements to real property located in this state if the
contract obligates a party, as its principal obligation under the
contract, to provide labor, or labor and materials, for the
construction or repair of improvements to real property located in
this state as a general contractor or subcontractor.
(c) A contract is not principally for the construction or
repair of improvements to real property located in this state if:
(1) the contract is a partnership agreement or other
agreement governing an entity or trust;
(2) the contract provides for a loan or other
extension of credit and the party promising to construct or repair
improvements does so as part of its agreements with the lender or
other extender of credit; or
(3) the contract is for the management of real
property or improvements and the obligation to construct or repair
is part of that management.
(d) Subsections (b) and (c) of this section are not an
exclusive list of situations in which a contract is or is not
principally for the construction or repair of improvements to real
property located in this state.
Added by Acts 1993, 73rd Leg., ch. 570, § 13, eff. Sept. 1, 1993.
§ 35.521. AGREEMENT FOR PAYMENT OF CONSTRUCTION
SUBCONTRACTOR. (a) In this section:
(1) "Contingent payee" means a party to a contract
with a contingent payment clause, other than an architect or
engineer, whose receipt of payment is conditioned on the contingent
payor's receipt of payment from another person.
(2) "Contingent payment clause" means a provision in a
contract for construction management, or for the construction of
improvements to real property or the furnishing of materials for
the construction, that provides that the contingent payor's receipt
of payment from another is a condition precedent to the obligation
of the contingent payor to make payment to the contingent payee for
work performed or materials furnished.
(3) "Contingent payor" means a party to a contract
with a contingent payment clause that conditions payment by the
party on the receipt of payment from another person.
(4) "Improvement" includes new construction,
remodeling, or repair.
(5) "Obligor" means the person obligated to make
payment to the contingent payor for an improvement.
(6) "Primary obligor" means the owner of the real
property to be improved or repaired under the contract, or the
contracting authority if the contract is for a public project. A
primary obligor may be an obligor.
(b) A contingent payor or its surety may not enforce a
contingent payment clause to the extent that the obligor's
nonpayment to the contingent payor is the result of the contractual
obligations of the contingent payor not being met, unless the
nonpayment is the result of the contingent payee's failure to meet
the contingent payee's contractual requirements.
(c) Except as provided by Subsection (f), a contingent payor
or its surety may not enforce a contingent payment clause as to work
performed or materials delivered after the contingent payor
receives written notice from the contingent payee objecting to the
further enforceability of the contingent payment clause as provided
by this section and the notice becomes effective as provided by
Subsection (d). The contingent payee may send written notice only
after the 45th day after the date the contingent payee submits a
written request for payment to the contingent payor that is in a
form substantially in accordance with the contingent payee's
contract requirements for the contents of a regular progress
payment request or an invoice.
(d) For purposes of Subsection (c), the written notice
becomes effective on the latest of:
(1) the 10th day after the date the contingent payor
receives the notice;
(2) the eighth day after the date interest begins to
accrue against the obligor under:
(A) Section 28.004, Property Code, under a
contract for a private project governed by Chapter 28, Property
Code; or
(B) 31 U.S.C. Section 3903(a)(6), under a
contract for a public project governed by 40 U.S.C. Section 3131; or
(3) the 11th day after the date interest begins to
accrue against the obligor under Section 2251.025, Government Code,
under a contract for a public project governed by Chapter 2251,
Government Code.
(e) A notice given by a contingent payee under Subsection
(c) does not prevent enforcement of a contingent payment clause if:
(1) the obligor has a dispute under Chapter 28,
Property Code, Chapter 2251, Government Code, or 31 U.S.C. Chapter
39 as a result of the contingent payee's failure to meet the
contingent payee's contractual requirements; and
(2) the contingent payor gives notice in writing to
the contingent payee that the written notice given under Subsection
(c) does not prevent enforcement of the contingent payment clause
under this subsection and the contingent payee receives the notice
under this subdivision not later than the later of:
(A) the fifth day before the date the written
notice from the contingent payee under Subsection (c) becomes
effective under Subsection (d); or
(B) the fifth day after the date the contingent
payor receives the written notice from the contingent payee under
Subsection (c).
(f) A written notice given by a contingent payee under
Subsection (c) does not prevent the enforcement of a contingent
payment clause to the extent that the funds are not collectible as a
result of a primary obligor's successful assertion of a defense of
sovereign immunity, if the contingent payor has exhausted all of
its rights and remedies under its contract with the primary obligor
and under Chapter 2251, Government Code. This subsection does not:
(1) create or validate a defense of sovereign
immunity; or
(2) extend to a primary obligor a defense or right that
did not exist before the effective date of this section.
(g) On receipt of payment by the contingent payee of the
unpaid indebtedness giving rise to the written notice provided by
the contingent payee under Subsection (c), the contingent payment
clause is reinstated as to work performed or materials furnished
after the receipt of the payment, subject to the provisions of this
section.
(h) A contingent payor or its surety may not enforce a
contingent payment clause if the contingent payor is in a sham
relationship with the obligor, as described by the sham
relationships in Section 53.026, Property Code.
(i) A contingent payment clause may not be used as a basis
for invalidation of the enforceability or perfection of a
mechanic's lien under Chapter 53, Property Code.
(j) A contingent payor or its surety may not enforce a
contingent payment clause if the enforcement would be
unconscionable. The party asserting that a contingent payment
clause is unconscionable has the burden of proving that the clause
is unconscionable.
(k) The enforcement of a contingent payment clause is not
unconscionable if the contingent payor:
(1) proves that the contingent payor has exercised
diligence in ascertaining and communicating in writing to the
contingent payee, before the contract in which the contingent
payment clause has been asserted becomes enforceable against the
contingent payee, the financial viability of the primary obligor
and the existence of adequate financial arrangements to pay for the
improvements; and
(2) has done the following:
(A) made reasonable efforts to collect the amount
owed to the contingent payor; or
(B) made or offered to make, at a reasonable
time, an assignment by the contingent payor to the contingent payee
of a cause of action against the obligor for the amounts owed to the
contingent payee by the contingent payor and offered reasonable
cooperation to the contingent payee's collection efforts, if the
assigned cause of action is not subject to defenses caused by the
contingent payor's action or failure to act.
(l) A cause of action brought on an assignment made under
Subsection (k)(2)(B) is enforceable by a contingent payee against
an obligor or a primary obligor.
(m) A contingent payor is considered to have exercised
diligence for purposes of Subsection (k)(1) under a contract for a
private project governed by Chapter 53, Property Code, if the
contingent payee receives in writing from the contingent payor:
(1) the name, address, and business telephone number
of the primary obligor;
(2) a description, legally sufficient for
identification, of the property on which the improvements are being
constructed;
(3) the name and address of the surety on any payment
bond provided under Subchapter I, Chapter 53, Property Code, to
which any notice of claim should be sent;
(4) if a loan has been obtained for the construction of
improvements:
(A) a statement, furnished by the primary obligor
and supported by reasonable and credible evidence from all
applicable lenders, of the amount of the loan;
(B) a summary of the terms of the loan;
(C) a statement of whether there is foreseeable
default of the primary obligor; and
(D) the name, address, and business telephone
number of the borrowers and lenders; and
(5) a statement, furnished by the primary obligor and
supported by reasonable and credible evidence from all applicable
banks or other depository institutions, of the amount, source, and
location of funds available to pay the balance of the contract
amount if there is no loan or the loan is not sufficient to pay for
all of the construction of the improvements.
(n) A contingent payor is considered to have exercised
diligence for purposes of Subsection (k)(1) under a contract for a
public project governed by Chapter 2253, Government Code, if the
contingent payee receives in writing from the contingent payor:
(1) the name, address, and primary business telephone
number of the primary obligor;
(2) the name and address of the surety on the payment
bond provided to the primary obligor to which any notice of claim
should be sent; and
(3) a statement from the primary obligor that funds
are available and have been authorized for the full contract amount
for the construction of the improvements.
(o) A contingent payor is considered to have exercised
diligence for purposes of Subsection (k)(1) under a contract for a
public project governed by 40 U.S.C. Section 3131 if the contingent
payee receives in writing from the contingent payor:
(1) the name, address, and primary business telephone
number of the primary obligor;
(2) the name and address of the surety on the payment
bond provided to the primary obligor; and
(3) the name of the contracting officer, if known at
the time of the execution of the contract.
(p) A primary obligor shall furnish the information
described by Subsection (m) or (n), as applicable, to the
contingent payor not later than the 30th day after the date the
primary obligor receives a written request for the information. If
the primary obligor fails to provide the information under the
written request, the contingent payor, the contingent payee, and
their sureties are relieved of the obligation to initiate or
continue performance of the construction contracts of the
contingent payor and contingent payee.
(q) The assertion of a contingent payment clause is an
affirmative defense to a civil action for payment under a contract.
(r) This section does not affect a provision that affects
the timing of a payment in a contract for construction management or
for the construction of improvements to real property if the
payment is to be made within a reasonable period.
(s) A person may not waive this section by contract or other
means. A purported waiver of this section is void.
(t) An obligor or a primary obligor may not prohibit a
contingent payor from allocating risk by means of a contingent
payment clause.
(u) This section does not apply to a contract that is solely
for:
(1) design services;
(2) the construction or maintenance of a road,
highway, street, bridge, utility, water supply project, water
plant, wastewater plant, water and wastewater distribution or
conveyance facility, wharf, dock, airport runway or taxiway,
drainage project, or related type of project associated with civil
engineering construction; or
(3) improvements to or the construction of a structure
that is a:
(A) detached single-family residence;
(B) duplex;
(C) triplex; or
(D) quadruplex.
Added by Acts 2007, 80th Leg., R.S., Ch. 498, § 1, eff. September
1, 2007.
Text of section effective until April 1, 2009
§ 35.53. NOTICE OF LAW; DISPUTE RESOLUTION FORUM
APPLICABLE TO CONTRACT. (a) This section applies to a contract
only if:
(1) the contract is for the sale, lease, exchange, or
other disposition for value of goods for the price, rental, or other
consideration of $50,000 or less;
(2) any element of the execution of the contract
occurred in this state and a party to the contract is:
(A) an individual resident of this state; or
(B) an association or corporation created under
the laws of this state or having its principal place of business in
this state; and
(3) Section 1.301 of this code does not apply to the
contract.
(b) If a contract to which this section applies contains a
provision making the contract or any conflict arising under the
contract subject to the laws of another state, to litigation in the
courts of another state, or to arbitration in another state, the
provisions must be set out conspicuously in print, type, or other
form of writing that is bold-faced, capitalized, underlined, or
otherwise set out in such a manner that a reasonable person against
whom the provision may operate would notice. If the provision is
not set out as provided by this subsection, the provision is
voidable by a party against whom it is sought to be enforced.
(c) Repealed by Acts 1993, 73rd Leg., ch. 570, § 16(4),
eff. Sept. 1, 1993.
Added by Acts 1987, 70th Leg., ch. 812, § 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 622, § 2, eff. Sept. 1,
1989; Acts 1989, 71st Leg., ch. 772, § 1, eff. Sept. 1, 1989;
Acts 1991, 72nd Leg., ch. 840, § 1, eff. Aug. 26, 1991; Acts
1993, 73rd Leg., ch. 570, § 14, 16(4), eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 728, § 2.001, eff. September 1,
2005.
Text of section effective until April 1, 2009
§ 35.531. LAW APPLICABLE TO CONTRACT MADE OVER
INTERNET. (a) In this section, "Internet" means the largest
nonproprietary nonprofit cooperative public computer network,
popularly known as the Internet.
(b) Subject to Subsection (e), this section applies only to
a contract made solely over the Internet between a person located in
this state and a person located outside this state who does not
maintain an office or agent in this state for doing business in this
state.
(c) A contract to which this section applies is governed by
the law of this state unless each party to the contract who is
located in this state:
(1) is given notice that the law of the state in which
another party to the contract is located applies to the contract;
and
(2) agrees to the application of that state's law.
(d) A person asserting that the law of another state applies
to a contract has the burden of proving that notice was given and
agreement was obtained as provided by Subsection (c).
(e) Sections 1.301 and 35.53 do not apply to a contract to
which this section applies. This section does not apply to a
contract to which Section 35.51 applies.
Added by Acts 1999, 76th Leg., ch. 977, § 1, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 728, § 2.002, eff. September 1,
2005.
Text of section effective until April 1, 2009
§ 35.54. USE OF CRIME VICTIM OR MOTOR VEHICLE ACCIDENT
INFORMATION FOR CERTAIN PURPOSES PROHIBITED. (a) In this
section:
(1) "Crime victim information" means information that
is collected or prepared by a law enforcement agency that
identifies or serves to identify a person who, according to the
records of the law enforcement agency, may have been the victim of a
crime in which physical injury to the person occurred or was
attempted or in which the offender entered or attempted to enter the
dwelling of the person.
(2) "Motor vehicle accident information" means
information that is collected or prepared by a law enforcement
agency that identifies or serves to identify a person who,
according to the records of the law enforcement agency, may have
been involved in a motor vehicle accident.
(b) A person who has possession of crime victim or motor
vehicle accident information that the person obtained or knows was
obtained from a law enforcement agency may not use the information
to contact directly a person who is a crime victim or who was
involved in a motor vehicle accident or a member of the person's
family for the purpose of soliciting business from the person or
family member and may not sell the information to another person for
financial gain.
(c) The attorney general may bring an action against a
person who violates Subsection (b) of this section pursuant to
Section 17.47 of this code.
(d) A person who violates Subsection (b) of this section
commits an offense. An offense under this subsection is a Class C
misdemeanor unless the defendant has been previously convicted
under this subsection more than two times, in which event the
offense is a felony of the third degree.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 4, § 1, eff. Jan. 1,
1990. Amended by Acts 1991, 72nd Leg., ch. 860, § 1, eff. Sept.
1, 1991.
Text of section effective until April 1, 2009
§ 35.55. SALE OF ITEMS AT FLEA MARKET. (a) In this
section, "flea market" means a location at which booths or similar
spaces are rented or otherwise made available temporarily to two or
more persons and at which the persons offer tangible personal
property for sale.
(b) In addition to any other sanctions provided by law, a
person commits an offense if the person sells or offers for sale at
a flea market:
(1) infant formula or baby food of a type usually
consumed by children younger than two years of age;
(2) a drug, as defined by Section 431.002, Health and
Safety Code; or
(3) contact lenses, including disposable contact
lenses.
(c) A person does not commit an offense under this section
solely because the person provides spaces at a flea market.
(d) It is a defense to prosecution under Subsection (b)
that:
(1) the person selling the item:
(A) is authorized in writing to sell the item at
retail by the manufacturer of the item or the manufacturer's
authorized distributor;
(B) the authorization states the person's name;
and
(C) the person provides for examination the
authorization to any person at the flea market who requests to see
the authorization; or
(2) only a sample of the item or a catalog or brochure
displaying the item was available at the flea market and the item
sold was not delivered to the buyer at the flea market.
(e) A person commits an offense if the person provides to
another person an authorization under Subsection (d)(1) and:
(1) the authorization is forged or contains a false
statement; or
(2) the person displaying the authorization obtained
the authorization by fraud.
(f) An offense under this section is a misdemeanor
punishable by a fine of not more than $100.
(g) A law enforcement agency investigating a violation of
this section shall maintain a record of the investigation. The
record is public information.
(h) This section does not apply to the sale or offer for sale
of a nutritional supplement or vitamin.
Added by Acts 1999, 76th Leg., ch. 694, § 1, eff. Sept. 1, 1999.
Text of section effective until April 1, 2009
§ 35.56. OFFENSE: IMPROPERLY INDUCED APPRAISAL FOR
MORTGAGE LOAN. (a) In this section:
(1) "Lender" means a person who lends money for or
invests money in mortgage loans.
(2) "Mortgage loan" means a loan that is secured by a
deed of trust, security deed, or other lien on real property.
(b) 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.
(c) An offense under this section is a Class A misdemeanor.
(d) Instructions given by a lender to a real estate
appraiser regarding legal or other regulatory requirements for the
appraisal of property, or any other communications between a lender
or real estate appraiser necessary or appropriate under a law,
regulation, or underwriting standard applicable to a real estate
appraisal, do not constitute interference by a lender for purposes
of Subsection (b)(2).
Added by Acts 2001, 77th Leg., ch. 839, § 1, eff. Sept. 1, 2001.
Text of section effective until April 1, 2009
§ 35.57. SHIPPING ARTICLES WITHOUT INSPECTION. (a) A
person commits an offense if the person:
(1) exports from this state, or ships for the purpose
of exportation to a state other than this state or to a foreign
port, an article of commerce that by law of this state is required
to be inspected by a public inspector; and
(2) does not have the article inspected as provided by
law.
(b) An offense under this section is a misdemeanor
punishable by a fine of not more than $100.
Added by Acts 2001, 77th Leg., ch. 1420, § 2.002(a), eff. Sept.
1, 2001. Renumbered from Bus. & C. Code § 35.49 by Acts 2003,
78th Leg., ch. 1275, § 2(2), eff. Sept. 1, 2003.
Text of section as added by Acts 2003, 78th Leg., ch. 341, § 1
Text of section effective until April 1, 2009
§ 35.58. CONFIDENTIALITY OF SOCIAL SECURITY NUMBER.
(a) A person may not print an individual's social security number
on a card or other device required to access a product or service
provided by the person unless the individual has requested in
writing such printing. A person may not require a request for such
printing as a condition to receipt of or access to a product or
service provided by the person.
(b) A person who violates this section is liable to the
state for a civil penalty in an amount not to exceed $500 for each
violation. The attorney general or the prosecuting attorney in the
county in which the violation occurs may bring suit to recover the
civil penalty imposed under this section. The attorney general may
bring an action in the name of the state to restrain or enjoin a
person from violating this section.
(c) This section does not apply to:
(1) the collection, use, or release of a social
security number that is required by state or federal law, including
Chapter 552, Government Code; or
(2) the use of a social security number for internal
verification or administrative purposes.
Added by Acts 2003, 78th Leg., ch. 341, § 1, eff. March 1, 2005.
Text of section as added by Acts 2003, 78th Leg., ch. 1326, § 6
Text of section effective until April 1, 2009
§ 35.58. CONFIDENTIALITY OF SOCIAL SECURITY NUMBER.
(a) A person, other than government or a governmental subdivision
or agency, may not:
(1) intentionally communicate or otherwise make
available to the general public an individual's social security
number;
(2) display an individual's social security number on
a card or other device required to access a product or service
provided by the person;
(3) require an individual to transmit the individual's
social security number over the Internet unless the connection with
the Internet is secure or the number is encrypted;
(4) require an individual's social security number for
access to an Internet website, unless a password or unique personal
identification number or other authentication device is also
required for access; or
(5) print an individual's social security number on
any materials, except as provided by Subsection (f), that are sent
by mail, unless state or federal law requires that the individual's
social security number be included in the materials.
(b) A person that is using an individual's social security
number before January 1, 2005, in a manner prohibited by Subsection
(a) may continue that use if:
(1) the use is continuous; and
(2) the person provides annual disclosure to the
individual, beginning January 1, 2006, stating that on written
request from the individual the person will cease to use the
individual's social security number in a manner prohibited by
Subsection (a).
(c) A person, other than government or a governmental
subdivision or agency, may not deny services to an individual
because the individual makes a written request under Subsection
(b).
(d) If a person receives a written request from an
individual directing the person to stop using the individual's
social security number in a manner prohibited by Subsection (a),
the person shall comply with the request not later than the 30th day
after the date the request is received. The person may not impose a
fee or charge for complying with the request.
(e) This section does not apply to:
(1) the collection, use, or release of a social
security number that is required by state or federal law, including
Chapter 552, Government Code;
(2) the use of a social security number for internal
verification or administrative purposes;
(3) documents that are recorded or required to be open
to the public under Chapter 552, Government Code;
(4) court records; or
(5) an institution of higher education if the use of a
social security number by the institution is regulated by Chapter
51, Education Code, or another provision of the Education Code.
(f) Subsection (a)(5) does not apply to an application or
form sent by mail, including a document sent:
(1) as part of an application or enrollment process;
(2) to establish, amend, or terminate an account,
contract, or policy; or
(3) to confirm the accuracy of a social security
number.
Added by Acts 2003, 78th Leg., ch. 1326, § 6, eff. Jan. 1, 2005.
Text of section as added by Acts 2005, 79th Leg., R.S., Ch. 198,
§ 1
For text of section as added by Acts 2005, 79th Leg., Ch. 946, §
1, see other § 35.581.
Text of section effective until April 1, 2009
§ 35.581. PRIVACY POLICY NECESSARY TO REQUIRE DISCLOSURE
OF SOCIAL SECURITY NUMBER. (a) A person may not require an
individual to disclose the individual's social security number to
obtain goods or services from or enter into a business transaction
with the person, unless the person:
(1) adopts a privacy policy;
(2) makes the privacy policy available to the
individual; and
(3) maintains under the privacy policy the
confidentiality and security of a social security number disclosed
to the person.
(b) A privacy policy adopted under this section must include
how personal information is collected, how and when the personal
information is used, how the personal information is protected, who
has access to the personal information, and how the personal
information is disposed.
(c) This section does not apply to:
(1) a person who is required to maintain and
disseminate a privacy policy under the Gramm-Leach-Bliley Act (15
U.S.C. Sections 6801 to 6809), the Family Educational Rights and
Privacy Act (20 U.S.C. Section 1232g), or the Health Insurance
Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d
et seq.);
(2) a covered entity under rules adopted by the
commissioner of insurance relating to insurance consumer health
information privacy or insurance consumer financial information
privacy;
(3) a governmental body, as defined by Section
552.003, Government Code, other than a municipally owned utility;
(4) a person with respect to a loan transaction, if the
person is not engaged in the business of making loans; or
(5) a person subject to Section 901.457, Occupations
Code.
(d) A person who violates Subsection (a) is liable to the
state for a civil penalty in an amount not to exceed $500 for each
calendar month during which a violation occurs. The civil penalty
may not be imposed for more than one violation that occurs in a
month. The attorney general or the prosecuting attorney in the
county in which the violation occurs may bring suit to recover the
civil penalty imposed under this section.
(e) The attorney general may bring an action in the name of
the state to restrain or enjoin a person from violating Subsection
(a).
Added by Acts 2005, 79th Leg., Ch. 198, § 1, eff. September 1,
2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 93, § 1, eff. September 1,
2007.
Text of section as added by Acts 2005, 79th Leg., R.S., Ch. 946,
§ 1
For text of section as added by Acts 2005, 79th Leg., Ch. 198, §
1, see other § 35.581.
Text of section effective until April 1, 2009
§ 35.581. (a) A merchant or a third party under contract
with a merchant who requires a consumer returning an item of
merchandise to provide the consumer's driver's license or social
security number may use the number or numbers provided by the
consumer solely for identification purposes if the consumer does
not have a valid receipt for the item being returned and is seeking
a cash, credit, or store credit refund.
(b) A merchant or third party under contract with a merchant
may not disclose a consumer's driver's license or social security
number to any other merchant or third party not involved in the
initial transaction.
(c) A merchant or third party under contract with a merchant
may only use a consumer's driver's license or social security number
to monitor, investigate, or prosecute fraudulent return of
merchandise.
(d) A merchant or third party under contract with a merchant
shall destroy or arrange for the destruction of records containing
the consumer's driver's license or social security number at the
expiration of six months from the date of the last transaction.
(e) A person who violates this section is liable to the
state for a civil penalty in an amount not to exceed $500 for each
violation. The attorney general or the prosecuting attorney in the
county in which the violation occurs may bring suit to recover the
civil penalty imposed under this section.
(f) The attorney general may bring an action in the name of
the state to restrain or enjoin a person from violating this
section.
Added by Acts 2005, 79th Leg., Ch. 946, § 1, eff. September 1,
2005.
Text of section effective until April 1, 2009
§ 35.585. EXTENSION OF CREDIT TO VICTIM OF IDENTITY
THEFT. (a) In this section, "victim of identity theft" means an
individual who has filed a criminal complaint alleging the
commission of an offense under Section 32.51, Penal Code, other
than a person who is convicted of an offense under Section 37.08,
Penal Code, with respect to that complaint. A person who has been
notified that an individual who has the capacity to contract has
been the victim of identity theft may not deny the individual an
extension of credit, including a loan, in the individual's name or
restrict or limit the credit extended solely because the individual
has been a victim of identity theft. This subsection does not
prohibit a person from denying an individual an extension of credit
for a reason other than because the individual has been a victim of
identity theft.
(b) A license issued under Subtitle B, Title 4, Finance
Code, that is held by a person who violates this section is subject
to revocation or suspension under that subtitle.
Added by Acts 2005, 79th Leg., Ch. 102, § 1, eff. September 1,
2005.
Text of section effective until April 1, 2009
§ 35.59. VERIFICATION OF CONSUMER IDENTITY. (a) In
this section:
(1) "Consumer report" has the meaning assigned by
Section 20.01.
(2) "Extension of credit" does not include an increase
in the dollar limit of an existing open-end credit plan as defined
by Regulation Z (12 C.F. R. Section 226.2), as amended, or any
change to, or review of, an existing credit account.
(3) "Security alert" has the meaning assigned by
Section 20.01.
(b) A person who receives notification of a security alert
under Section 20.032 in connection with a request for a consumer
report for the approval of a credit-based application, including an
application for an extension of credit, a purchase, lease, or
rental agreement for goods, or for an application for a
noncredit-related service, may not lend money, extend credit, or
authorize an application without taking reasonable steps to verify
the consumer's identity.
(c) If a consumer has included with a security alert a
specified telephone number to be used for identity verification
purposes, a person who receives that number with a security alert
must take reasonable steps to contact the consumer using that
number before lending money, extending credit, or completing any
purchase, lease, or rental of goods, or approving any
noncredit-related services.
(d) If a person uses a consumer report to facilitate the
extension of credit or for any other transaction on behalf of a
subsidiary, affiliate, agent, assignee, or prospective assignee,
that person, rather than the subsidiary, affiliate, agent,
assignee, or prospective assignee, may verify the consumer's
identity.
Added by Acts 2003, 78th Leg., ch. 1326, § 7, eff. Sept. 1, 2003.
Text of section effective until April 1, 2009
§ 35.591. NOTATION OF FORGED CHECK. (a) In this
section, "victim of identify theft" means a person who has filed
with an appropriate law enforcement agency a criminal complaint
alleging commission of an offense under Section 32.51, Penal Code.
(b) If a victim of identity theft closes an account at a
financial institution as a result of the identity theft, notifies
the financial institution that the identity theft is the reason for
closing the account, provides the financial institution with a copy
of the criminal complaint described by Subsection (a), and requests
that the financial institution return checks with the notation
"forgery," the financial institution shall process as forgeries the
checks received after the customer takes those actions, in
accordance with the financial institution's customary procedures.
(c) A victim of identity theft who requests that a financial
institution return checks with the notation "forgery" as provided
by Subsection (b):
(1) may not assert that the financial institution is
liable under Section 4.402 for wrongfully dishonoring a check
returned after the victim makes the request; and
(2) shall hold the financial institution harmless for
acting in accordance with the victim's request.
Added by Acts 2005, 79th Leg., Ch. 615, § 1, eff. September 1,
2005.
§ 35.595. NOTIFICATION TO CHECK VERIFICATION ENTITIES
THAT CUSTOMER IS VICTIM OF IDENTITY THEFT. (a) In this section:
(1) "Check verification entity" means a consumer
reporting agency that compiles and maintains, for businesses in
this state, files on consumers on a nationwide basis regarding the
consumers' check-writing history.
(2) "Financial institution" means a bank, savings
association, savings bank, or credit union maintaining an office,
branch, or agency office in this state.
(b) A financial institution shall submit the information as
required by Subsection (c) if a customer notifies the financial
institution that the customer was a victim of an offense under
Section 32.51, Penal Code, requests that the financial institution
close an account that has been compromised by the alleged offense,
and presents to the financial institution:
(1) a copy of a police report of an offense under
Section 32.51, Penal Code;
(2) a sworn statement by the person that the person was
the victim of an offense under that section; and
(3) written authorization to submit the information
required by Subsection (d) to the electronic notification system
established under Section 11.309, Finance Code, for secure
distribution to check verification entities.
(c) A financial institution that receives the documents
required by Subsection (b), not later than the second business day
after the date the customer provides the documents to the financial
institution, shall submit the information required by Subsection
(d) to the electronic notification system established under Section
11.309, Finance Code.
(d) The information submitted by a financial institution
under Subsection (c) must include:
(1) the customer's name, address, phone number, date
of birth, and driver's license number or government-issued
identification number;
(2) the financial institution account number of any
account that has been compromised by the alleged offense and has
been closed in response to the alleged offense;
(3) the financial institution routing number; and
(4) the number on any check that has been lost, stolen,
or compromised.
(e) A check verification entity shall maintain reasonable
procedures, in accordance with rules adopted by the finance
commission, to prevent the check verification entity from
recommending acceptance or approval of a check or similar sight
order drawn on an account identified in the notification if:
(1) the check verification entity receives
notification through the electronic notification system; or
(2) a customer presents to the check verification
entity:
(A) a copy of a police report of an offense under
Section 32.51, Penal Code;
(B) a sworn statement by the person that the
person was the victim of an offense under that section and that the
person has requested that the financial institution close any
account that has been compromised by the alleged offense; and
(C) the information described by Subsection (d).
(f) A financial institution or check verification entity,
or an officer, director, employee, or agent of the institution or
entity, is not liable for damages resulting from providing the
notification required by Subsection (c) or failing to recommend
acceptance or approval of a check or similar sight order under
Subsection (e).
(g) The Finance Commission of Texas may adopt rules:
(1) to implement this section;
(2) to clarify the duties and responsibilities of a
customer, financial institution, or check verification entity
under this section; and
(3) to specify how an erroneous notification may be
withdrawn, amended, or corrected.
Added by Acts 2007, 80th Leg., R.S., Ch. 1044, § 1, eff.
September 1, 2007.
§ 35.60. IDENTITY THEFT BY ELECTRONIC DEVICE.
(a) In this section:
(1) "Payment card" means a credit card, a debit card, a
check card, or any other card that is issued to an authorized user
to purchase or obtain goods, services, money, or any other thing of
value.
(2) "Re-encoder" means an electronic device that can
be used to transfer encoded information from a magnetic strip on a
payment card onto the magnetic strip of a different payment card.
(3) "Scanning device" means an electronic device used
to access, read, scan, or store information encoded on the magnetic
strip of a payment card.
(b) A person commits an offense if the person uses a
scanning device or re-encoder to access, read, scan, store, or
transfer information encoded on the magnetic strip of a payment
card without the consent of an authorized user of the payment card
and with intent to harm or defraud another.
(c) An offense under this section is a Class B misdemeanor.
(d) If conduct that constitutes an offense under this
section also constitutes an offense under any other law, the actor
may be prosecuted under this section or the other law.
Added by Acts 2003, 78th Leg., ch. 649, § 1, eff. Sept. 1, 2003.
Renumbered from Business and Commerce Code, Section 35.58 by Acts
2007, 80th Leg., R.S., Ch. 921, § 17.001(6), eff. September 1,
2007.
Text of section effective until April 1, 2009
§ 35.61. BUSINESS RECEIPT CONTAINING CREDIT CARD OR
DEBIT CARD INFORMATION. (a) This section does not apply to a
transaction in which the sole means of recording a person's credit
card or debit card account number on a receipt or other document
evidencing the transaction is by handwriting or by an imprint or
copy of the credit card or debit card.
(b) A person that accepts a credit card or debit card for the
transaction of business may not print more than the last four digits
of the credit card or debit card account number or the month and
year of the credit card's or debit card's expiration date on a
receipt or other document that evidences the transaction and that
is provided to a cardholder.
(c) A person who provides, leases, or sells a cash register
or other machine used to print receipts or other documents
evidencing credit card or debit card transactions shall provide
notice of the requirements of this section to the recipient,
lessee, or buyer, as applicable, of the machine.
(d) A court may not certify an action brought under this
section as a class action.
(e) A person who violates Subsection (b) is liable to the
state for a civil penalty in an amount not to exceed $500 for each
calendar month during which a violation occurs. The civil penalty
may not be imposed for more than one violation that occurs in a
month. The attorney general or the prosecuting attorney in the
county in which the violation occurs may bring suit to recover the
civil penalty imposed under this section.
(f) The attorney general may bring an action in the name of
the state to restrain or enjoin a person from violating Subsection
(b).
Added by Acts 2003, 78th Leg., ch. 808, § 1, eff. Sept. 1, 2003.
Renumbered from Business and Commerce Code, Section 35.58 by Acts
2005, 79th Leg., Ch. 728, § 23.001(4), eff. September 1, 2005.
Text of section effective until April 1, 2009
§ 35.62. DELETION OF CERTAIN ELECTRONIC RECORDS
CONCERNING A CUSTOMER WHO ISSUES A CHECK. (a) This section
applies only to a business that accepts checks from customers in the
ordinary course of business.
(b) A business shall delete any electronic record
indicating that a customer has issued a dishonored check or any
other information except for the checking account number or bank
routing transit number on which the business bases a refusal to
accept a check from a customer 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 report filed by the customer with a law
enforcement agency stating that the dishonored check was
unauthorized; and
(B) a written notice from the customer that the
dishonored check was unauthorized.
(c) A business that violates Subsection (b) is liable to the
state for a civil penalty of up to $1,000. The attorney general may
sue to collect the penalty.
(d) The attorney general may recover reasonable expenses
incurred in obtaining a civil penalty under Subsection (c),
including court costs, reasonable attorney's fees, investigative
costs, witness fees, and deposition expenses.
(e) In this section, "law enforcement agency" has the
meaning assigned by Article 59.01, Code of Criminal Procedure.
(f) This section does not apply to a financial institution
as defined by 31 U.S.C. Section 5312(a)(2), as amended.
Added by Acts 2005, 79th Leg., Ch. 984, § 1, eff. September 1,
2005.
Text of section as added by Acts 2007, 80th Leg., R.S., Ch. 307,
§ 1
§ 35.63. SALE OF PLASTIC BULK MERCHANDISE CONTAINER.
(a) In this section:
(1) "Plastic bulk merchandise container" means a
plastic crate or shell used by a product producer, distributor, or
retailer for the bulk transportation or storage of retail
containers of milk, eggs, or bottled beverage products.
(2) "Proof of ownership" includes a bill of sale or
other evidence showing that an item has been sold to the person
possessing the item.
(b) A person who is in the business of recycling, shredding,
or destroying plastic bulk merchandise containers, before
purchasing five or more plastic bulk merchandise containers from
the same person, shall:
(1) obtain from that person:
(A) proof of ownership for the containers; and
(B) a record that contains:
(i) the name, address, and telephone number
of the person or the person's authorized representative;
(ii) the name and address of the buyer of
the containers or any consignee of the containers;
(iii) a description of the containers,
including the number of the containers to be sold; and
(iv) the date of the transaction; and
(2) verify the identity of the individual selling the
containers or representing the seller from a driver's license or
other government-issued identification card that includes the
individual's photograph, and record the verification.
(c) A person shall retain a record obtained or made under
this section until the first anniversary of the later of the date
the containers are purchased or delivered.
(d) A person who violates Subsection (b) or (c) is liable to
this state for a civil penalty of $10,000 for each violation.
(e) A person who is in the business of recycling, shredding,
or destroying plastic bulk merchandise containers may not use an
artifice to avoid the application of this section, including
documenting purchases from the same person on the same day as
multiple transactions. A person who violates this subsection is
liable to this state for a civil penalty of $30,000 for each
violation.
(f) The attorney general or appropriate prosecuting
attorney may sue to collect a civil penalty under this section.
Added by Acts 2007, 80th Leg., R.S., Ch. 307, § 1, eff. September
1, 2007.
Text of section as renumbered by Acts 2007, 80th Leg., R.S., Ch.
921, § 17.001
§ 35.63. WARNING SIGN ABOUT IDENTITY THEFT FOR
RESTAURANT OR BAR EMPLOYEES. (a) In this section:
(1) "Credit card" means an identification card, plate,
coupon, book, number, or any other device authorizing a designated
person or bearer to obtain property or service on credit.
(2) "Debit card" means an identification card, plate,
coupon, book, number, or any other device authorizing a designated
person or bearer to communicate a request to an unmanned teller
machine or a customer convenience terminal or obtain property or
services by debit to an account at a financial institution.
(b) This section applies only to a restaurant or bar that
accepts credit cards or debit cards from customers in the ordinary
course of business.
(c) A restaurant or bar owner shall display in a prominent
place on the premises of the restaurant or bar a sign stating in
letters at least 1/2 inch high: "UNDER SECTION 32.51, PENAL CODE,
IT IS A STATE JAIL FELONY (PUNISHABLE BY CONFINEMENT IN A STATE JAIL
FOR NOT MORE THAN TWO YEARS) TO OBTAIN, POSSESS, TRANSFER, OR USE A
CUSTOMER'S DEBIT CARD OR CREDIT CARD NUMBER WITHOUT THE CUSTOMER'S
CONSENT."
(d) A restaurant or bar owner shall display the sign in
English and in another language spoken by a substantial portion of
the employees of the restaurant or bar as their familiar language.
(e) A restaurant or bar owner who fails to comply with this
section commits an offense. An offense under this subsection is a
misdemeanor punishable by a fine of not more than $25.
(f) It is a defense to prosecution under this section that
the person charged produces to the court satisfactory evidence that
the person displayed a sign as required by Subsection (c) not later
than 48 hours after the person received a citation for an offense
under Subsection (e). If the court is satisfied with the evidence
produced by the person, the court shall dismiss the charge.
Added by Acts 2005, 79th Leg., Ch. 195, § 1, eff. September 1,
2005.
Renumbered from Business and Commerce Code, Section 35.60 by Acts
2007, 80th Leg., R.S., Ch. 921, § 17.001(7), eff. September 1,
2007.
Text of section as added by Acts 2007, 80th Leg., R.S., Ch. 916,
§ 1
§ 35.64. ZIP CODE VERIFICATION IN CREDIT CARD
TRANSACTION. (a) In this section:
(1) "Credit card" means a card or device issued under
an agreement by which the issuer gives to a cardholder the right to
obtain credit from the issuer or another person.
(2) "Credit card issuer" means a lender, including a
financial institution, or a merchant that receives applications and
issues credit cards to individuals.
(b) A business may require a customer who purchases a good
or service from the business using a credit card to provide the
customer's zip code to verify the customer's identity as provided by
Subsection (c).
(c) A business that obtains a customer's zip code under
Subsection (b) may electronically verify with the credit card
issuer that the zip code matches any zip code that the credit card
issuer has on file for the credit card.
(d) A business that obtains a customer's zip code under
Subsection (b) may not retain the zip code in any form after the
purchase of the good or service has been completed.
Added by Acts 2007, 80th Leg., R.S., Ch. 916, § 1, eff. June 15,
2007.
Text of section as added by Acts 2007, 80th Leg., R.S., Ch. 182,
§ 1
§ 35.64. CERTAIN USES OF NAME OR PICTURE OF MEMBER OF
ARMED FORCES PROHIBITED. (a) In this section:
(1) "Heir" means a surviving grandparent, parent,
sibling, child, or grandchild of a deceased individual.
(2) "Personal representative" means an executor,
independent executor, administrator, independent administrator, or
temporary administrator, together with their successors.
(b) A person commits an offense if the person uses, in an
advertisement for a commercial purpose, the name of an individual
who is an active duty or former member of the United States armed
forces, who is a member or former member of a reserve component of
the United States armed forces, or who is a member or former member
of the state military forces, as defined by Section 431.001,
Government Code, or a picture of the individual in uniform in which
the individual is clearly identifiable, without obtaining the
consent of:
(1) the individual, if the individual is living; or
(2) the individual's surviving spouse or personal
representative or a majority of the individual's adult heirs, if
the individual is deceased.
(c) An offense under this section is a Class A misdemeanor.
(d) This section does not apply to a member of the print or
broadcast media who uses a name or picture of an individual in a
report of news to the public or an advertisement for that report.
Added by Acts 2007, 80th Leg., R.S., Ch. 182, § 1, eff. September
1, 2007.
SUBCHAPTER F. RENTAL-PURCHASE AGREEMENTS
Text of section effective until April 1, 2009
§ 35.71. DEFINITIONS. In this subchapter:
(1) "Advertisement" means a commercial message in any
medium that directly or indirectly promotes or assists a
rental-purchase agreement.
(2) "Cash price" means the price for which the
merchant would have sold the merchandise to the consumer for cash on
the date of the rental-purchase agreement.
(3) "Consumer" means an individual who leases personal
property under a rental-purchase agreement.
(3-a) "Loss damage waiver" means a merchant's
agreement not to hold a consumer liable for loss from all or part of
any damage to merchandise.
(4) "Merchandise" means the personal property that is
the subject of a rental-purchase agreement.
(5) "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,
and includes a person who is assigned an interest in a
rental-purchase agreement.
(6) "Rental-purchase agreement" means an agreement
for the use of merchandise by a consumer for personal, family, or
household purposes, for an initial period of four months or less
that is automatically renewable with each payment after the initial
period, and that permits the consumer to become the owner of the
merchandise.
Added by Acts 1985, 69th Leg., ch. 209, § 1, eff. Sept. 1, 1985.
Amended by Acts 2003, 78th Leg., ch. 816, § 24.001, eff. Sept. 1,
2003.
Text of section effective until April 1, 2009
§ 35.72. FORM. (a) A rental-purchase agreement must be
written in plain English and in any other language used by the
merchant in an advertisement related to the rental-purchase
agreement. Numerical amounts must be stated in figures.
(b) Disclosures required by this subchapter must be printed
or typed in each rental-purchase agreement in a size equal to at
least 10-point bold-faced type. The attorney general shall provide
a form agreement that may be used to satisfy the requirements of an
agreement under this subchapter.
(c) A rental-purchase agreement may not contain a
provision:
(1) requiring a confession of judgment;
(2) authorizing a merchant or an agent of the merchant
to commit a breach of the peace in the repossession of merchandise;
(3) waiving a defense, counterclaim, or right the
consumer may have against the merchant or an agent of the merchant;
(4) requiring the purchase of insurance or a loss
damage waiver from the merchant to cover the merchandise;
(5) requiring the payment of a late charge or
reinstatement fee unless a periodic payment is delinquent for more
than seven days if the payment is due monthly, or is delinquent for
more than three days if the payment is due more frequently than
monthly, and the charge or fee is in an amount equal to not more than
the lesser of 10 percent of the delinquent payment or $10, and not
less than $5; or
(6) requiring a payment at the end of the scheduled
rental-purchase term in excess of or in addition to a regular
periodic payment in order to acquire ownership of the
merchandise. In no event shall the consumer be required to pay a
sum greater than the total amount to be paid to acquire ownership,
as disclosed in Subsection (g)(3) of this section.
(d) Only one late charge or reinstatement fee may be
collected on a payment regardless of the period during which it
remains in default.
(e) A rental-purchase agreement must provide that:
(1) a charge in addition to periodic payments, if any,
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 rights or options previously
acquired, by taking the required action before the later of one week
or half of the number of days in a regular payment period after the
due date of the payment.
(f) Notice of the right to reinstate an agreement must be
disclosed in the agreement. This subchapter does not prevent a
merchant from attempting repossession of merchandise during the
reinstatement period, and the consumer's right to reinstate an
agreement does not expire because of such a repossession. If the
merchandise is returned during the applicable reinstatement
period, other than through judicial process, the right to reinstate
the agreement shall be extended for a period of not less than 30
days after the date of the return of the merchandise. On
reinstatement, the merchant shall provide the consumer with the
same merchandise or substitute merchandise of comparable quality
and condition. If substitute merchandise is provided, the merchant
shall provide the consumer with the disclosures required in
Subsection (g) of this section.
(g) A rental-purchase agreement must disclose:
(1) whether the merchandise is new or used;
(2) the amount and timing of payments;
(3) the total number of payments necessary and the
total amount to be paid to acquire ownership of the merchandise;
(4) the amount and purpose of any payment, charge, or
fee in addition to the regular periodic payments;
(5) 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;
(6) that the consumer does not acquire ownership
rights unless the consumer has complied with the ownership terms of
the agreement; and
(7) the cash price of the merchandise.
Added by Acts 1985, 69th Leg., ch. 209, § 1, eff. Sept. 1, 1985.
Amended by Acts 2003, 78th Leg., ch. 816, § 24.002, eff. Sept. 1,
2003.
Amended by:
Acts 2005, 79th Leg., Ch. 1346, § 1, eff. June 18, 2005.
Text of section effective until April 1, 2009
§ 35.721. LOSS DAMAGE WAIVER. (a) In addition to other
charges permitted by this subchapter, a consumer may contract for a
loss damage waiver. A loss damage waiver is not insurance.
(b) A merchant may not sell a loss damage waiver unless the
consumer agrees to the waiver in writing. A merchant may not impose
or require the purchase of a loss damage waiver as a mandatory
charge.
(c) A loss damage waiver may exclude loss or damage to the
merchandise that is caused by an unexplained disappearance or
abandonment of the merchandise, or any other damage that is
intentionally caused by the consumer or that results from the
consumer's wilful or wanton misconduct.
(d) A loss damage waiver agreement must include a statement
of the total charge for the loss damage waiver.
(e) A merchant may charge a periodic fee for a loss damage
waiver that may not exceed 10 percent of the periodic rental
payment.
(f) 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."
(g) A merchant may not sell a loss damage waiver unless the
form of the contract containing the waiver has been approved by the
Texas Department of Licensing and Regulation.
(h) The Texas Commission of Licensing and Regulation shall
by rule:
(1) provide the method for annual submission of all
contracts, including amendments to a contract, that contain a loss
damage waiver, for review by the Texas Department of Licensing and
Regulation; and
(2) set a reasonable fee to be paid by the merchant for
the review of contract forms under Subdivision (1) and for the
administration of this subchapter by the Texas Department of
Licensing and Regulation.
Added by Acts 2003, 78th Leg., ch. 816, § 24.003, eff. Sept. 1,
2003.
Text of section effective until April 1, 2009
§ 35.722. ENFORCEMENT; INVESTIGATION; HEARING.
(a) In this section:
(1) "Commission" means the Texas Commission of
Licensing and Regulation.
(2) "Department" means the Texas Department of
Licensing and Regulation.
(b) The department shall enforce Section 35.721 and may, as
necessary, investigate a merchant who has one or more contracts
that include a loss damage waiver.
(c) A person may file a complaint alleging a violation of
Section 35.721 with the department. The department shall
investigate the alleged violation on receipt of the complaint, and
may inspect any record relevant to the complaint.
(d) 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.
(e) If, after opportunity for hearing, the commission
determines that the merchant has violated Section 35.721, the
commission may:
(1) impose an administrative penalty under Chapter 51,
Occupations Code; or
(2) award the complainant damages in an amount up to
the amount of the contract price for the merchandise.
Added by Acts 2003, 78th Leg., ch. 816, § 24.003, eff. Sept. 1,
2003.
Text of section effective until April 1, 2009
§ 35.73. ADVERTISEMENT. 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.
Added by Acts 1985, 69th Leg., ch. 209, § 1, eff. Sept. 1, 1985.
Text of section effective until April 1, 2009
§ 35.74. ENFORCEMENT. (a) A consumer damaged by a
violation of this subchapter by a merchant is entitled to recover
from the merchant:
(1) actual damages;
(2) 25 percent of an amount equal to the total amount
of payments required to obtain ownership of the merchandise
involved, except that the amount recovered under this subdivision
may not be less than $250 nor 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 subchapter caused by the merchant's error if
before the 31st day after the date the merchant discovers the error,
and before an action under this section is filed or written notice
of the error is received by the merchant from the consumer, the
merchant gives the consumer written notice of the error and makes
adjustments in the consumer's account as necessary to assure that
the consumer will not be required to pay an amount in excess of the
amount disclosed and that the agreement otherwise complies with
this subchapter.
(c) A violation of this subchapter is a deceptive trade
practice under Subchapter E of Chapter 17, Business & Commerce
Code.
Added by Acts 1985, 69th Leg., ch. 209, § 1, eff. Sept. 1, 1985.
SUBCHAPTER G. SALES REPRESENTATIVES
Text of section effective until April 1, 2009
§ 35.81. DEFINITIONS. In this subchapter:
(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 in
whole or in part 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.
Added by Acts 1987, 70th Leg., ch. 318, § 1, eff. Sept. 1, 1987.
Amended by Acts 1995, 74th Leg., ch. 714, § 1, eff. Sept. 1,
1995.
Text of section effective until April 1, 2009
§ 35.82. CONTRACT. A contract between a principal and a
sales representative under which the sales representative is to
solicit wholesale orders within this state must be in writing or in
a computer-based medium and set forth the method by which the sales
representative's commission is to be computed and paid. The
principal shall provide the sales representative with a copy of the
contract. A provision in the contract establishing venue for an
action arising under the contract in a state other than this state
is void.
Added by Acts 1987, 70th Leg., ch. 318, § 1, eff. Sept. 1, 1987.
Amended by Acts 1995, 74th Leg., ch. 714, § 2, eff. Sept. 1,
1995.
Text of section effective until April 1, 2009
§ 35.83. PAYMENT IN ABSENCE OF CONTRACT. If a
compensation agreement between a sales representative and a
principal that does not comply with Section 35.82 is terminated,
the principal shall pay all commissions due the sales
representative within thirty working days after the date of the
termination.
Added by Acts 1987, 70th Leg., ch. 318, § 1, eff. Sept. 1, 1987.
Amended by Acts 1995, 74th Leg., ch. 714, § 2, eff. Sept. 1,
1995.
Text of section effective until April 1, 2009
§ 35.84. DAMAGES. A principal who fails to comply with a
provision of a contract under Section 35.82 relating to payment of a
commission or fails to pay a commission as required by Section 35.83
is liable to the sales representative in a civil action for three
times the unpaid commission sustained by the sales representative
plus reasonable attorney's fees and costs.
Added by Acts 1987, 70th Leg., ch. 318, § 1, eff. Sept. 1, 1987.
Amended by Acts 1995, 74th Leg., ch. 714, § 2, eff. Sept. 1,
1995.
Text of section effective until April 1, 2009
§ 35.85. JURISDICTION. A principal who is not a
resident of this state and who enters into a contract subject to
this subchapter is considered to be doing business in this state for
purposes of the exercise of personal jurisdiction over the
principal.
Added by Acts 1987, 70th Leg., ch. 318, § 1, eff. Sept. 1, 1987.
Text of section effective until April 1, 2009
§ 35.86. WAIVER. A provision of this subchapter may not
be waived, whether by express waiver or by attempt to make a
contract or agreement subject to the laws of another state. A
waiver of a provision of this subchapter is void.
Added by Acts 1987, 70th Leg., ch. 318, § 1, eff. Sept. 1, 1987.
SUBCHAPTER H. PROTECTION OF SOUND OR IMAGE RECORDINGS OR
PERFORMANCES
Text of section effective until April 1, 2009
§ 35.91. DEFINITIONS. In this subchapter:
(1) "Fixed" means embodied in a recording or other
tangible medium of expression, by or under the authority of the
author, so that the matter embodied is sufficiently permanent or
stable to permit it to be perceived, reproduced, or otherwise
communicated for a period of more than transitory duration.
(2) "Live performance" means a recitation, rendering,
or playing of a series of images, musical, spoken, or other sounds,
or a combination of images and sounds, in an audible sequence.
(3) "Owner" means a person who owns the sounds fixed in
a master phonograph record, master disc, master tape, master film,
or other recording on which sound is or can be recorded and from
which the transferred recorded sounds are directly or indirectly
derived.
(4) "Recording" means a tangible medium on which
sounds, images, or both are recorded or otherwise stored, including
an original phonograph record, disc, tape, audio or video cassette,
wire, film, or other medium now existing or developed later on which
sounds, images, or both are or can be recorded or otherwise stored
or a copy or reproduction that duplicates in whole or in part the
original.
Added by Acts 1989, 71st Leg., ch. 339, § 1, eff. Sept. 1, 1989.
Text of section effective until April 1, 2009
§ 35.92. UNAUTHORIZED DUPLICATION. (a) A person
commits an offense if the person:
(1) knowingly reproduces for sale or causes to be
transferred any recording with intent to sell it or cause it to be
sold or use it or cause it to be used for commercial advantage or
private financial gain through public performance without the
consent of the owner;
(2) transports within this state, for commercial
advantage or private financial gain, a recording with the knowledge
that the sounds have been reproduced or transferred without the
consent of the owner; or
(3) advertises, offers for sale, sells, or rents,
causes the sale, resale, or rental of or possesses for one or more
of these purposes any recording that the person knows has been
reproduced or transferred without the consent of the owner.
(b) An offense under this section is punishable by:
(1) a fine of not more than $250,000, imprisonment for
not more than five years, or both, if:
(A) the offense involves at least 1,000
unauthorized recordings during a 180-day period; or
(B) the defendant has been previously convicted
under this section;
(2) a fine of not more than $250,000, imprisonment for
not more than two years, or both, if the offense involves more than
100 but less than 1,000 unauthorized recordings during a 180-day
period; or
(3) a fine of not more than $25,000, confinement in the
county jail for not more than one year, or both, for any other
offense.
(c) This section does not affect the rights and remedies of
a party in private litigation.
(d) This section applies only to recordings that were
initially fixed before February 15, 1972. This section does not
apply to any fees due ASCAP.
Added by Acts 1989, 71st Leg., ch. 339, § 1, eff. Sept. 1, 1989.
Text of section effective until April 1, 2009
§ 35.93. UNAUTHORIZED RECORDING OF LIVE PERFORMANCE.
(a) A person commits an offense if the person:
(1) for commercial advantage or private financial gain
advertises, offers for sale, sells, rents, transports, causes the
sale, resale, rental, or transportation of or possesses for one or
more of these purposes a recording containing sounds of a live
performance with the knowledge that the live performance has been
recorded or fixed without the consent of the owner; or
(2) with the intent to sell for commercial advantage
or private financial gain records or fixes or causes to be recorded
or fixed on a recording a live performance with the knowledge that
the live performance has been recorded or fixed without the consent
of the owner.
(b) An offense under this section is punishable by:
(1) a fine of not more than $250,000, imprisonment for
not more than five years, or both, if:
(A) the offense involves at least 1,000
unauthorized recordings embodying sound or at least 65 unauthorized
audiovisual recordings during a 180-day period; or
(B) the defendant has been previously convicted
under this section;
(2) a fine of not more than $250,000, imprisonment for
not more than two years, or both, if the offense involves more than
100 but less than 1,000 unauthorized recordings embodying sound or
more than seven but less than 65 unauthorized audiovisual
recordings during a 180-day period; or
(3) a fine of not more than $25,000, confinement in the
county jail for not more than one year, or both, for any other
offense.
(c) In the absence of a written agreement or law to the
contrary, the performer or performers of a live performance are
presumed to own the rights to record or fix those sounds.
(d) For the purposes of this section, a person who is
authorized to maintain custody and control over business records
that reflect whether or not the owner of the live performance
consented to having the live performance recorded or fixed is a
proper witness in a proceeding regarding the issue of consent. A
witness called pursuant to this section is subject to the rules of
evidence relating to the competency of a witness to testify and the
relevance and admissibility of the testimony offered.
(e) This section does not affect the rights and remedies of
a party in private litigation.
Added by Acts 1989, 71st Leg., ch. 339, § 1, eff. Sept. 1, 1989.
Text of section effective until April 1, 2009
§ 35.935. UNAUTHORIZED OPERATION OF RECORDING DEVICE IN
MOTION PICTURE THEATER. (a) In this section:
(1) "Audiovisual recording function" means the
capability of a device to record or transmit a motion picture or any
part of a motion picture by means of any technology now known or
later developed.
(2) "Motion picture theater" means a movie theater,
screening room, or other place primarily used to exhibit a motion
picture.
(b) A person commits an offense if the person, with the
intent to record a motion picture, knowingly operates the
audiovisual recording function of any device in a motion picture
theater, while the motion picture is being exhibited, without the
consent of the owner of the theater.
(c) An offense under this section is a Class A misdemeanor,
except that the offense is:
(1) a state jail felony if the person has been
previously convicted one time of an offense under this section; or
(2) a felony of the third degree if the person has been
previously convicted two or more times of an offense under this
section.
(d) It is a defense to prosecution under this section that
the audiovisual recording function of the device was operated
solely for official law enforcement purposes.
(e) If conduct constituting an offense under this section
also constitutes an offense under another law, the actor may be
prosecuted under this section, the other law, or both.
(f) A person who reasonably believes that another has
knowingly operated the audiovisual recording function of any device
in a motion picture theater in violation of this section is
privileged to detain that person in a reasonable manner and for a
reasonable time to allow for the arrival of law enforcement
authorities.
Added by Acts 2005, 79th Leg., Ch. 46, § 1, eff. September 1,
2005.
Text of section effective until April 1, 2009
§ 35.94. LABELING. (a) A person commits an offense if,
for commercial advantage or private financial gain, the person
knowingly advertises, offers for sale, sells, rents, or transports,
causes the sale, resale, rental, or transportation of, or possesses
for any of these purposes a recording if the outside cover, box, or
jacket of the recording does not clearly and conspicuously disclose
the actual name and address of the manufacturer and the name of the
performer or group.
(b) An offense under this section is punishable by:
(1) a fine of not more than $250,000, imprisonment for
not more than five years, or both, if:
(A) the offense involves at least 65 unauthorized
recordings during a 180-day period; or
(B) the defendant has been previously convicted
under this section;
(2) a fine of not more than $250,000, imprisonment for
not more than two years, or both, if the offense involves more than
seven but less than 65 unauthorized recordings during a 180-day
period; or
(3) a fine of not more than $25,000, confinement in the
county jail for not more than one year, or both for any other
offense.
(c) This section does not affect the rights and remedies of
a party in private litigation.
Added by Acts 1989, 71st Leg., ch. 339, § 1, eff. Sept. 1, 1989.
Text of section effective until April 1, 2009
§ 35.95. FORFEITURE. If a person is convicted of a
violation of this subchapter, the court in its judgment of
conviction shall order the forfeiture and destruction or other
disposition of:
(1) all recordings on which the conviction is based;
and
(2) all implements, devices, and equipment used or
intended to be used in the manufacture of the recordings on which
the conviction is based.
Added by Acts 1989, 71st Leg., ch. 339, § 1, eff. Sept. 1, 1989.
Text of section effective until April 1, 2009
§ 35.96. REMEDIES CUMULATIVE. The penalties provided by
this subchapter are in addition to any other penalties provided
under any other law.
Added by Acts 1989, 71st Leg., ch. 339, § 1, eff. Sept. 1, 1989.
SUBCHAPTER I. PROVISION OF SOFTWARE OR SERVICES TO BLOCK OR SCREEN
INTERNET MATERIAL
Text of section effective until April 1, 2009
§ 35.101. DEFINITIONS. In this subchapter:
(1) "Freeware" means software that is distributed to a
person free of charge regardless of whether use of the software is
subject to certain restrictions.
(2) "Internet" means the largest nonproprietary
nonprofit cooperative public computer network, popularly known as
the Internet.
(3) "Interactive computer service" means any
information service or system that provides or enables computer
access by multiple users to the Internet.
(4) "Shareware" means copyrighted software in which
the copyright owner sets certain conditions for its use and
distribution, including requiring payment to the copyright owner
after a person who has secured a copy of the software decides to use
the software, regardless of whether the payment is for additional
support or functionality for the software.
Added by Acts 1997, 75th Leg., ch. 303, § 1, eff. Sept. 1, 1997.
Text of section effective until April 1, 2009
§ 35.102. SOFTWARE OR SERVICES THAT RESTRICT ACCESS TO
CERTAIN MATERIAL ON INTERNET. (a) A person who provides an
interactive computer service to another person for a fee shall
provide free of charge to each subscriber of the service in this
state a link leading to fully functional shareware, freeware, or
demonstration versions of software or to a service that, for at
least one operating system, enables the subscriber to automatically
block or screen material on the Internet.
(b) A provider is considered to be in compliance with this
section if the provider places, on the provider's first page of
world wide web text information accessible to a subscriber, a link
leading to the software or a service described by Subsection (a).
The identity of the link or other on-screen depiction of the link
must appear set out from surrounding written or graphical material
so as to be conspicuous.
(c) This section does not apply to the Department of
Information Resources, in its capacity as the telecommunications
provider for the state, and an institution of higher education, as
that term is defined by Section 61.003, Education Code, that
provides interactive computer service.
(d) A person who provides a link that complies with this
section is not liable to a subscriber for any temporary
inoperability of the link or for the effectiveness of the software
or service that the person links to.
Added by Acts 1997, 75th Leg., ch. 303, § 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 937, § 2.01, eff.
September 1, 2007.
Text of section effective until April 1, 2009
§ 35.103. CIVIL PENALTY. (a) A person is liable to the
state for a civil penalty of $2,000 for each day on which the person
provides an interactive computer service for a fee but fails to
provide a link to software or a service as required by Section
35.102. The aggregate civil penalty may not exceed $60,000.
(b) The attorney general may institute a suit to recover the
civil penalty. Before filing suit, the attorney general shall give
the person notice of the person's noncompliance and liability for a
civil penalty. If the person complies with the requirements of
Section 35.102 not later than the 30th day after the date of the
notice, the violation is considered cured and the person is not
liable for the civil penalty.
Added by Acts 1997, 75th Leg., ch. 303, § 1, eff. Sept. 1, 1997.
SUBCHAPTER J. WIRELESS COMMUNICATION FACILITY
Text of section effective until April 1, 2009
§ 35.111. DEFINITION. In this subchapter, "wireless
communication facility" means an equipment enclosure, antenna,
antenna support structure, and any associated facility used for the
reception or transmittal of a radio frequency, microwave, or other
signal for a commercial communications purpose.
Added by Acts 2003, 78th Leg., ch. 1222, § 2, eff. June 20, 2003.
Text of section effective until April 1, 2009
§ 35.112. NOTICE OF CONSTRUCTION. (a) A person
proposing to construct a wireless communication facility that is
taller than 100 feet shall, on or before the 30th day before the
date the construction begins, mail a letter to each of the
following:
(1) any airport located within three miles of the
proposed facility location; and
(2) the Texas Agricultural Aviation Association.
(b) The letter must state:
(1) the legal description of the proposed site of
construction, including a graphic depiction showing the location,
height, longitude, latitude, pad size, roadway access, and proposed
use of the wireless communication facility and location of any guy
wires;
(2) at a minimum, the name, phone number, electronic
mail address, if any, and mailing address of the person proposing
construction of the wireless communication facility; and
(3) a phone number that is operational 24 hours a day,
seven days a week, for emergency purposes.
Added by Acts 2003, 78th Leg., ch. 1222, § 2, eff. June 20, 2003.
Text of section effective until April 1, 2009
§ 35.113. EXCEPTIONS. This subchapter does not apply to
any structure whose main purpose is to provide electric service, a
wireless communication facility used by an entity only for internal
communications, a wireless communication facility constructed by a
municipality, a wireless communication facility used for emergency
communications, a radio or television reception antenna, a
satellite or microwave parabolic antenna not used by a wireless
communication service provider, a receive-only antenna, an antenna
owned and operated by a federally licensed amateur radio station
operator, a cable television company facility, a radio or
television broadcasting facility, a colocation antenna, or a
wireless communication facility installed for colocation purposes.
Added by Acts 2003, 78th Leg., ch. 1222, § 2, eff. June 20, 2003.
Text of section effective until April 1, 2009
§ 35.114. EFFECT ON CERTAIN ORDINANCES. This subchapter
does not preempt a local ordinance regulating a wireless
communication facility.
Added by Acts 2003, 78th Leg., ch. 1222, § 2, eff. June 20, 2003.
SUBCHAPTER K. INTERNATIONAL MATCHMAKING ORGANIZATIONS
Text of section effective until April 1, 2009
§ 35.121. DEFINITIONS. In this subchapter:
(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 Texas
residents 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 is not a citizen or
resident of the United States and who is recruited by an
international matchmaking organization for the purpose of
providing dating, matrimonial, or social referral services.
Added by Acts 2005, 79th Leg., Ch. 728, § 2.003(a), eff.
September 1, 2005.
Text of section effective until April 1, 2009
§ 35.122. NOTICE OF AVAILABILITY OF 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 its clients and with basic rights information.
(b) The information under Subsection (a) must be:
(1) in the recruit's native language; and
(2) 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.
Added by Acts 2005, 79th Leg., Ch. 728, § 2.003(a), eff.
September 1, 2005.
Text of section effective until April 1, 2009
§ 35.123. PROVIDING 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 international matchmaking 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 international matchmaking organization shall pay
the costs incurred to translate the information.
Added by Acts 2005, 79th Leg., Ch. 728, § 2.003(a), eff.
September 1, 2005.
Text of section effective until April 1, 2009
§ 35.124. OBTAINING CRIMINAL HISTORY RECORD INFORMATION
AND MARITAL HISTORY INFORMATION. (a) The client shall:
(1) obtain a copy of the person's own criminal history
record information;
(2) provide the criminal history record information to
the international matchmaking organization; and
(3) provide to the international matchmaking
organization the person's own marital history information.
(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.
Added by Acts 2005, 79th Leg., Ch. 728, § 2.003(a), eff.
September 1, 2005.
Text of section effective until April 1, 2009
§ 35.125. CIVIL PENALTY. (a) An international
matchmaking organization that violates this subchapter 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 subchapter 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 of Travis County or of 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 56.34, Code of Criminal Procedure.
Added by Acts 2005, 79th Leg., Ch. 728, § 2.003(a), eff.
September 1, 2005.
SUBCHAPTER L. CREDIT CARD MARKETING AT POSTSECONDARY EDUCATIONAL
INSTITUTIONS
§ 35.131. DEFINITIONS. In this subchapter:
(1) "Campus credit card marketing activity":
(A) means any activity:
(i) conducted by an agent or employee of a
credit card issuer on the campus of a postsecondary educational
institution; and
(ii) designed to encourage and enable
students to apply for a credit card; and
(B) includes the act of placing on the campus a
display or poster together with a form that can be returned to the
credit card issuer as a credit card application, even if an employee
or agent of the credit card issuer is not present at the display.
(2) "Credit card" means a card or device issued under
an agreement by which the issuer gives to a cardholder the right to
obtain credit from the issuer or another person.
(3) "Credit card issuer" means a lender, including a
financial institution, or a merchant that receives applications and
issues credit cards to individuals.
(4) "Governing board" means the body charged with
policy direction of any postsecondary educational institution,
including a board of directors, a board of regents, a board of
trustees, and an independent school district board that is charged
with policy direction of a public junior college.
(5) "Postsecondary educational institution" means:
(A) an institution of higher education as defined
by Section 61.003, Education Code;
(B) a private or independent institution of
higher education as defined by Section 61.003, Education Code; or
(C) a private postsecondary educational
institution as defined by Section 61.302, Education Code.
Added by Acts 2007, 80th Leg., R.S., Ch. 130, § 1, eff. September
1, 2007.
§ 35.132. CAMPUS CREDIT CARD MARKETING ACTIVITY OUTSIDE
DESIGNATED LOCATION OR TIME PROHIBITED. (a) A credit card issuer
may not engage in campus credit card marketing activities:
(1) outside of a campus location designated by the
governing board of the postsecondary educational institution for
that purpose in accordance with Subsection (b); or
(2) at a time other than a time designated by the
governing board in accordance with Subsection (b).
(b) The governing board of a postsecondary educational
institution may designate:
(1) one or more locations on campus where a credit card
issuer may engage in campus credit card marketing activities; and
(2) one or more times during which a credit card issuer
may engage in campus credit card marketing activities.
Added by Acts 2007, 80th Leg., R.S., Ch. 130, § 1, eff. September
1, 2007.
§ 35.133. CREDIT CARD ISSUER TO DEVELOP FINANCIAL
EDUCATIONAL MATERIAL. A credit card issuer who conducts campus
credit card marketing activities shall develop financial
educational material in consultation with or subject to approval by
the postsecondary educational institution. The financial
educational material must include a clear and practical explanation
of:
(1) effective money management skills, including how
to develop and maintain a budget;
(2) key financial terms and phrases related to credit
cards and personal debt management;
(3) credit educational materials and programs offered
by the credit card issuer that are available to student cardholders
after they have opened an account;
(4) resources to assist students in understanding
credit reports and credit scores and the consequences of
irresponsible credit card use; and
(5) the importance of responsible credit practices,
including timely paying the minimum amount due each month and
reducing costs by paying as much of the balance as possible.
Added by Acts 2007, 80th Leg., R.S., Ch. 130, § 1, eff. September
1, 2007.
§ 35.134. CREDIT CARD ISSUER TO PROVIDE FINANCIAL
EDUCATIONAL MATERIAL. A credit card issuer that conducts campus
credit card marketing activities shall:
(1) during the time that the credit card issuer
conducts the credit card marketing activity on the campus, make
available to students, on the campus, financial educational
material developed under Section 35.133;
(2) make financial educational material similar to
material developed under Section 35.133 available on the Internet;
and
(3) provide to a student to whom a credit card is
issued, at the time the credit card is provided to the student,
financial educational material developed under Section 35.133.
Added by Acts 2007, 80th Leg., R.S., Ch. 130, § 1, eff. September
1, 2007.
§ 35.135. RESTRICTION ON GIFTS OR INCENTIVES FOR
COMPLETING CREDIT CARD APPLICATION. A credit card issuer may not
offer a gift or other incentive in exchange for the completion of a
credit card application as part of a campus credit card marketing
activity unless the credit card issuer, at the time the credit card
issuer provides a credit card application to an individual,
provides financial educational material developed under Section
35.133 to the individual.
Added by Acts 2007, 80th Leg., R.S., Ch. 130, § 1, eff. September
1, 2007.
§ 35.136. CREDIT CARD AND DEBT EDUCATION AT NEW STUDENT
ORIENTATION. The governing board of a postsecondary educational
institution that has designated a location for campus credit card
marketing activities under Section 35.132(b) shall also adopt a
policy requiring a credit card and debt education and counseling
session to be included in any orientation program for new
students. The postsecondary educational institution may use
existing educational materials prepared by nonprofit entities for
purposes of the credit card and debt education and counseling
session.
Added by Acts 2007, 80th Leg., R.S., Ch. 130, § 1, eff. September
1, 2007.
§ 35.137. CIVIL PENALTY. A person who intentionally
violates this subchapter is liable to the state for a civil penalty
in an amount not to exceed $2,500 for each violation. The attorney
general or the prosecuting attorney in the county in which the
violation occurs may bring suit to recover the civil penalty
imposed under this section.
Added by Acts 2007, 80th Leg., R.S., Ch. 130, § 1, eff. September
1, 2007.
SUBCHAPTER L. PROTECTION OF CUSTOMER TELEPHONE RECORDS
§ 35.151. DEFINITIONS. In this subchapter:
(1) "Caller identification record" means a record
that:
(A) is delivered electronically to the recipient
of a telephone call simultaneously with the reception of the call;
and
(B) indicates the telephone number from which the
telephone call was made or other similar information regarding the
call.
(2) "Telephone company" means a provider of commercial
telephone services, or a provider that bills for those services,
regardless of the technology used to provide that service,
including landline, radio, wireless, microwave, satellite, Voice
over Internet Protocol (VoIP), or other cable, broadband, or
digital technology.
(3) "Telephone record" means a written, electronic, or
oral record, other than a caller identification record collected
and retained by or on behalf of a customer, created by a telephone
company about a customer, that includes:
(A) the telephone number:
(i) dialed by a customer; or
(ii) of an incoming call made to a customer;
(B) the time a call was made to or by a customer;
(C) the duration of a call made to or by a
customer; or
(D) the location from which a call was initiated
or at which a call was received by a customer.
Added by Acts 2007, 80th Leg., R.S., Ch. 822, § 1, eff. September
1, 2007.
§ 35.152. CONSTRUCTION OF SUBCHAPTER. This subchapter
does not apply to expand the obligations or duties of a telephone
company under federal or other state law to protect telephone
records.
Added by Acts 2007, 80th Leg., R.S., Ch. 822, § 1, eff. September
1, 2007.
§ 35.153. UNAUTHORIZED OR FRAUDULENT PROCUREMENT, SALE,
OR RECEIPT OF TELEPHONE RECORDS. (a) A person commits an offense
if the person:
(1) obtains, attempts to obtain, or conspires with
another to obtain a telephone record of a resident of this state
without the authorization of the resident to whom the record
pertains by:
(A) making a statement the person knows to be
false to an agent of a telephone company;
(B) making a statement the person knows to be
false to a telephone company;
(C) fraudulently accessing the record through
the telephone company's Internet website; or
(D) providing to a telephone company a document
that the person knows:
(i) is fraudulent;
(ii) has been lost or stolen;
(iii) has been obtained by fraud; or
(iv) contains a false, fictitious, or
fraudulent statement or representation;
(2) asks another person to obtain a telephone record
of a resident of this state knowing that the record will be obtained
in a manner prohibited by this section;
(3) sells, transfers, or attempts to sell or transfer
a telephone record of a resident of this state without
authorization of the resident to whom the record pertains; or
(4) offers to obtain or offers to sell a telephone
record that has been or will be obtained without authorization from
the resident to whom the record pertains.
(b) An offense under this section is a Class A misdemeanor,
except that a fine shall not exceed $20,000.
(c) In addition to the penalties provided by Subsection (b),
a person convicted of an offense under this section may be required
to forfeit personal property used or intended to be used in
violation of this section.
(d) In addition to the penalties provided by Subsections (b)
and (c), a person convicted of an offense under this section shall
be ordered to pay to a resident whose telephone record was obtained
in a manner prohibited by this section an amount equal to the sum
of:
(1) the greater of the resident's financial loss, if
proof of the loss is submitted to the satisfaction of the court, or
$1,000; and
(2) the amount of any financial gain received by the
person as the direct result of the offense.
(e) An offense under this section may be prosecuted in:
(1) the county in which the customer whose telephone
record is the subject of the prosecution resided at the time of the
offense; or
(2) any county in which any part of the offense took
place regardless of whether the defendant was ever present in the
county.
(f) If venue lies in more than one county under Subsection
(e), a defendant may be prosecuted in only one county for the same
conduct.
(g) If conduct constituting an offense under this section
also constitutes an offense under another section of this code or of
any other law, including the Penal Code, the actor may be prosecuted
under either section or under both sections.
(h) This section does not create a private right of action.
Added by Acts 2007, 80th Leg., R.S., Ch. 822, § 1, eff. September
1, 2007.
§ 35.154. EXCEPTIONS. Section 35.153 does not apply to:
(1) a person who acted pursuant to a valid court order,
warrant, subpoena, or civil investigative demand;
(2) a telephone company that disclosed a telephone
record:
(A) the disclosure of which is otherwise
authorized by law;
(B) reasonably believing the disclosure was
necessary to:
(i) provide service to a customer;
(ii) protect an individual from fraudulent,
abusive, or unlawful use of a telephone record or telephone
service; or
(iii) protect the rights or property of the
company;
(C) to the National Center for Missing and
Exploited Children in connection with a report submitted under 42
U.S.C. Section 13032;
(D) for purposes of testing the company's
security procedures or systems for maintaining the confidentiality
of customer information;
(E) to a governmental entity, if the company
reasonably believed that an emergency involving danger of death or
serious physical injury to a person justified disclosure of the
information;
(F) in connection with the sale or transfer of
all or part of the company's business, the purchase or acquisition
of all or part of another company's business, or the migration of a
customer from one telephone company to another telephone company;
(G) necessarily incident to the rendition of the
service, to initiate, render, bill, and collect the customer's
charges, or to protect the customer of those services and other
carriers from fraudulent, abusive, or unlawful use of, or
subscription to, such services; or
(H) while acting reasonably and in good faith,
notwithstanding a later determination that the action was not
authorized; or
(3) a person or a telephone company that acted in
connection with the official duties of a 9-1-1 governmental entity
or a public agency solely for purposes of delivering or assisting in
the delivery of 9-1-1 emergency services and other emergency
services.
Added by Acts 2007, 80th Leg., R.S., Ch. 822, § 1, eff. September
1, 2007.
§ 35.155. DECEPTIVE TRADE PRACTICE; ENFORCEMENT. A
violation of this subchapter is a false, misleading, or deceptive
act or practice under Section 17.46 and is subject to action only by
the consumer protection division of the attorney general's office
as provided by Section 17.46(a).
Added by Acts 2007, 80th Leg., R.S., Ch. 822, § 1, eff. September
1, 2007.
§ 35.156. CONSISTENCY WITH FEDERAL LAW. This subchapter
may not be construed in a manner that is inconsistent with 18 U.S.C.
Section 1038, 47 U.S.C. Section 222, or any other applicable
federal law or rule.
Added by Acts 2007, 80th Leg., R.S., Ch. 822, § 1, eff. September
1, 2007.
§ 35.157. NONAPPLICABILITY TO LAW ENFORCEMENT
AGENCIES. This subchapter does not prohibit any lawfully
authorized investigative, protective, or intelligence activity of
a law enforcement agency of the United States, a state, or a
political subdivision of a state or of an intelligence agency of the
United States.
Added by Acts 2007, 80th Leg., R.S., Ch. 822, § 1, eff. September
1, 2007.