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.