HBA-MPM S.B. 366 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 366 By: Armbrister Business & Industry 3/28/2001 Committee Report (Amended) BACKGROUND AND PURPOSE Under current law, florists located in another state are not prohibited from placing in a local telephone directory advertising that does not inform the consumer of its location. This practice has contributed to the loss of sales to Texas florists, as well as loss of sales state tax dollars. Senate Bill 366 prohibits a business that sells flowers from misrepresenting its actual geographical location in a telephone directory or directory assistance database and through the use of a local number that transfers a caller to another location. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 366 amends the Business & Commerce Code to prohibit a person from misrepresenting the geographical location in the business listings in a telephone directory or other directory assistance database of a business that derives 50 percent or more of its gross income from the sale or arranging for the sale of flowers or floral arrangements. The bill provides that a person is considered to have misrepresented a business's geographical location if the business name indicates that the business is located in a geographical area and: _the business is not located within the geographical area indicated; _the listing does not identify the municipality and state of the business's location; and _a telephone call to the local telephone number listed in the directory or database routinely is forwarded or transferred to a location outside the calling area covered by the directory or database. The bill authorizes a person to place a directory listing for a business located in another geographical area if a conspicuous notice in the listing states the municipality and state where the business is located. The bill specifies that these provisions do not apply to a publisher of a telephone directory or provider of a directory assistance service publishing or providing information about another business. The bill provides that a violation of these provisions is a false, misleading, or deceptive act or practice, and any public or private right or remedy prescribed by the Deceptive Trade Practices-Consumer Protection Act may be used for purposes of enforcement. EFFECTIVE DATE September 1, 2001. EXPLANATION OF AMENDMENTS Committee Amendment No. 1 inserts the word "knowing" between the words "a" and "violation," so that the bill provides that a knowing violation of the provisions of this bill is a false, misleading, or deceptive act or practice.