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BUSINESS AND COMMERCE CODE CHAPTER 302. SOLICITATION

REGULATION OF TELEPHONE

BUSINESS AND COMMERCE CODE TITLE 10. USE OF TELECOMMUNICATIONS

SUBTITLE A. TELEPHONES CHAPTER 302. REGULATION OF TELEPHONE SOLICITATION SUBCHAPTER A. GENERAL PROVISIONS

Sec. 302.001.AADEFINITIONS.AAIn this chapter: (1)AA"Item" means property or a service.AAThe term

includes a coupon book to be used with a business. (2)AA"Owner" means a person who has control of or is entitled to, by ownership or other claim, at least 10 percent of a seller 's net income. (3)AA"Purchaser" means a person who: (A)AAis solicited to become or becomes obligated for the purchase or rental of an item; or (B)AAis offered an opportunity to claim or receive an item. (4)AA"Salesperson" means a person who is employed or authorized by a seller to make a telephone solicitation. (5)AA"Seller" means a person who makes a telephone

solicitation on the person 's own behalf. (6)AA"Supervised financial institution" means a bank, trust company, loan savings and loan association, property lender, credit union,

industrial finance

company, commercial

personal finance

broker, insurer,

consumer or other

lender,

financial institution that is subject to supervision by an official or agency of this state or the United States. (7)AA"Telephone solicitation" means a telephone call a seller or salesperson initiates to induce a person to purchase, rent, claim, or receive an item.AAThe term includes a telephone call a purchaser makes in response to a solicitation sent by mail or made by any other means. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

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Sec. 302.002.AAMAKING TELEPHONE SOLICITATION.AAFor purposes of this chapter, a person makes a telephone solicitation if the person effects or attempts to effect a telephone solicitation, including a solicitation initiated by an automatic dialing machine or a recorded message device. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.003.AALIBERAL CONSTRUCTION AND APPLICATION.AAThis chapter shall be liberally construed and applied to promote its underlying purpose to protect persons against false, misleading, or deceptive practices in the telephone solicitation business. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.004.AAATTEMPTED WAIVER VOID.AAAn attempted waiver of a provision of this chapter is void. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER B.

EXEMPTIONS

Sec. 302.051.AABURDEN OF PROOF.A (a)AAIn a civil proceeding in which a violation of this chapter is alleged, a person who claims an exemption from the application of this chapter has the burden of proving the exemption. (b)AAIn a criminal proceeding in which a violation of this chapter is alleged, a person who claims an exemption from the

application of this chapter as a defense to prosecution has the burden of producing evidence to support the defense. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec.

302.052.AAEXEMPTIONS

APPLY

ONLY

TO

SELLERS;

EXCEPTION.AAExcept as provided by Section 302.060, an exemption from the application of this chapter applies only to a seller. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

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Sec.

302.053.AAEXEMPTION:

PERSONS

REGULATED

BY

OTHER

LAW.AAThis chapter does not apply to: (1)AAa person offering or selling a security that has been qualified for sale under Section 7, The Securities Act

(Article 581-7, Vernon 's Texas Civil Statutes), or that is subject to an exemption under Section 5 or 6 of that Act; (2)AAa publicly traded corporation registered with the Securities and Exchange Commission or the State Securities Board, or a subsidiary or agent of the corporation; (3)AAa person who holds a license issued under the

Insurance Code if the solicited transaction is governed by that code; (4)AAa supervised financial institution or a parent, a subsidiary, or an affiliate of a supervised financial institution; (5)AAa person whose business is regulated by the Public Utility Commission of Texas or an affiliate of that person, except that this chapter applies to such a person or affiliate only with respect to one or more automated dial announcing devices; (6)AAa person subject to the control or licensing

regulations of the Federal Communications Commission; (7)AAa person selling a contractual plan regulated by the Federal Trade Commission trade regulation on use of negative option plans by sellers in commerce under 16 C.F.R. Part 425; (8)AAa person subject to filing requirements under

Chapter 1803, Occupations Code; or (9)AAa person who: (A)AAis soliciting a transaction regulated by the Commodity Futures Trading Commission; and (B)AAis registered or holds a temporary license for the activity described by Paragraph (A) with the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. Section 1 et seq.), if the registration or license has not expired or been suspended or revoked. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

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Sec. SUBSCRIPTIONS,

302.054.AAEXEMPTION:AAPERSONS CERTAIN MERCHANDISE, OR

SELLING ITEMS FROM

MEDIA CERTAIN

CATALOGS.AAThis chapter does not apply to: (1)AAa person soliciting the sale of a subscription to: (A)AAa circulation; (B)AAa circulation; or (C)AAa cable television service; (2)AAa person selling merchandise under an arrangement in which the seller periodically ships the merchandise to a magazine or other periodical of general daily or weekly newspaper of general

consumer who has consented in advance to receive the merchandise periodically; or (3)AAa person periodically issuing and delivering to purchasers catalogs that each: (A)AAinclude a written description or

illustration and the sales price of each item offered for sale; (B)AAinclude at least 24 full pages of written material or illustrations; (C)AAare distributed in more than one state; and (D)AAhave 250,000 customers. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009. an annual circulation of at least

Sec.

302.055.AAEXEMPTION:AAEDUCATIONAL chapter does not apply to

AND an

NONPROFIT educational

ORGANIZATIONS.AAThis

institution or organization or a nonprofit organization exempt from taxation under Section 501(c)(3), Internal Revenue Code of 1986. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.056.AAEXEMPTION:AACERTAIN COMMERCIAL SALES.AAThis chapter does not apply to a sale in which the purchaser is a

business that intends to: (1)AAresell the item purchased; or (2)AAuse the item purchased in a recycling, reuse,

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remanufacturing, or manufacturing process. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec.

302.057.AAEXEMPTION:

PERSON

SOLICITING

FOOD

SALES.AAThis chapter does not apply to a person soliciting the sale of food. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.058.AAEXEMPTION: SOLICITATION OF FORMER OR CURRENT CUSTOMERS.AAThis chapter does not apply to: (1)AAthe solicitation of a contract for the maintenance or repair of an item previously purchased from the person making the solicitation or on whose behalf the solicitation is made; or (2)AAa person who: (A)AAis current customer; and (B)AAhas operated under the same business name for at least two years. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009. soliciting business from a former or

Sec.

302.059.AAEXEMPTION:

PERSONS

WHO

MAKE

CERTAIN

SALES

PRESENTATIONS OR MAKE SALES AT ESTABLISHED RETAIL LOCATIONS.AAThis chapter does not apply to: (1)AAa person conducting a telephone solicitation who: (A)AAdoes not intend to complete or obtain

provisional acceptance of a sale during the telephone solicitation; (B)AAdoes not make a major sales presentation

during the telephone solicitation but arranges for a major sales presentation to be made face-to-face at a later meeting between the salesperson and the purchaser; and (C)AAdoes not cause an individual to go to the purchaser to collect payment for the purchase or to deliver an item purchased directly following the telephone solicitation; or (2)AAa person who for at least two years, under the same

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name as that used in connection with the person 's telemarketing operations, goods are has operated and a retail establishment for sale where consumer if a

displayed of the

offered

continuously, buyers

majority

person 's

business

involves

obtaining

services or products at the retail establishment. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec. TELEPHONE

302.060.AAEXEMPTION: SOLICITATION SERVICES

CERTAIN

PERSONS

PROVIDING FOR EXEMPT

PREDOMINANTLY

PERSONS.AAThis chapter does not apply to a person: (1)AAwho provides telephone solicitation services

under contract to a seller; (2)AAwho has been operating continuously for at least three years under the same business name; and (3)AAfor whom at least 75 percent of the person 's

contracts are performed on behalf of other persons exempt from the application of this chapter under this section. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec.

302.061.AAEXEMPTION:

PERSONS

CONDUCTING

CERTAIN

ISOLATED TELEPHONE SOLICITATIONS.AAThis chapter does not apply to a person engaging in a telephone solicitation that: (1)AAis an isolated transaction; and (2)AAis not done in the course of a pattern of repeated transactions of a similar nature. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER C. REGISTRATION Sec. 302.101.AAREGISTRATION CERTIFICATE REQUIRED.A (a)AAA

seller may not make a telephone solicitation from a location in this state or to a purchaser located in this state unless the seller holds a registration certificate for the business location from which the telephone solicitation is made. (b)AAA separate registration certificate is required for

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each business location from which a telephone solicitation is made. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec.

302.102.AAFILING

OF

REGISTRATION

STATEMENT;

PUBLIC

INFORMATION.A (a)AATo obtain a registration certificate, a seller must file with the secretary of state a registration statement that: (1)AAis state; (2)AAcontains the information required by Subchapter D; (3)AAis verified by each principal of the seller; and (4)AAspecifies the date and location of verification. (b)AAInformation included in or attached to a registration statement is public information. (c)AAIn executive this section, of a "principal" a means general an owner, of an a in the form prescribed by the secretary of

officer

corporation,

partner

partnership, a sole proprietor, a trustee of a trust, or another individual with similar supervisory functions with respect to any person. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec.

302.103.AAISSUANCE

OF

REGISTRATION

CERTIFICATE.A

(a)AAThe secretary of state shall issue a registration certificate and mail the certificate to the seller when the secretary of state receives: (1)AAa Section 302.102; (2)AAthe filing fee prescribed by Section 302.106; (3)AAthe security required by Section 302.107; and (4)AAthe consent regarding service of process required by Section 302.108. (b)AAIf the seller uses a single registration statement to register more than one business location, the secretary of state shall: (1)AAissue a registration certificate for each business completed registration statement required by

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location; and (2)AAmail all the certificates to the principal

business location shown on the registration statement. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec.

302.104.AAEFFECTIVE

DATE

OF

REGISTRATION

STATEMENT;

RENEWAL.A (a)AAA registration statement takes effect on the date the secretary of state issues the registration certificate and is effective for one year. (b)AAA registration statement may be renewed annually by: (1)AAfiling a renewal registration statement

containing the information required by Subchapter D; and (2)AApaying 302.106. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009. the filing fee prescribed by Section

Sec. 302.105.AAADDENDA REQUIREMENTS.A (a)AAFor each quarter after the effective date of a registration statement, the seller shall file with the secretary of state an addendum providing the required registration information for each salesperson who is

soliciting or has solicited on behalf of the seller during the preceding quarter. (b)AAA seller may comply with Subsection (a) by filing with the secretary of state a copy of the "Employer 's Quarterly Report" for employee wages that the seller files with the Texas Workforce Commission. (c)AAIn material addition in to filing the quarterly in addendum, a if a

change

information

submitted

registration

statement, other than the information described by Subsection (a), occurs before the date for renewal, a seller shall submit that information to the secretary of state by filing an addendum. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec.

302.106.AAFILING

FEE.AAThe

filing

fee

for

a

8

registration statement is $200. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec.

302.107.AASECURITY

REQUIREMENTS.AAA

registration

statement must be accompanied by security that: (1)AAis in the amount of $10,000; (2)AAis in the form of: (A)AAa bond executed by a corporate security that: (i)AAis approved by the secretary of state; and (ii)AAholds a license to transact business in this state; (B)AAan irrevocable letter of credit issued for the benefit of the registrant by a supervised financial institution whose deposits are insured by an agency of the federal government; or (C)AAa certificate of deposit in a supervised

financial institution whose deposits are insured by an agency of the federal government, the principal of which may be withdrawn only on the order of the secretary of state; and (3)AAis this chapter. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009. conditioned on the seller 's compliance with

Sec. 302.108.AAAPPOINTMENT OF SECRETARY OF STATE AS AGENT FOR SERVICE.A (a)AAA seller shall file with the secretary of state, in the form prescribed by the secretary of state, an irrevocable

consent appointing the secretary of state to act as the seller 's agent to receive service of process in a noncriminal action or proceeding that may arise under this chapter against the seller or the seller 's successor, executor, or administrator if: (1)AAan 302.151(15); (2)AAthe agent named under Section 302.151(15) has agent has not been named under Section

resigned or died and the name of a successor agent has not been

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submitted under Section 302.105; or (3)AAthe agent named under Section 302.151(15) cannot with reasonable diligence be found at the disclosed address. (b)AAService on the secretary of state under this section has the same effect as service on the seller.AAService on the secretary of state may be made by: (1)AAleaving a copy of the process in the office of the secretary of state; (2)AApromptly sending by first class mail a notice of the service and a copy of the process to the seller 's principal business location at the last address on file with the secretary of state;AAand (3)AAfiling the plaintiff 's affidavit of compliance

with this section in the action or proceeding on or before the return date of any process or within an additional period that the court allows. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER D. Sec.

DISCLOSURES REQUIRED IN REGISTRATION STATEMENT OF CERTAIN NAMES, ADDRESSES,

302.151.AADISCLOSURE

TELEPHONE NUMBERS, AND ORGANIZATIONAL INFORMATION.AAA registration statement must contain: (1)AAthe seller 's name and, if different from the

seller 's name, the name under which the seller is transacting or intends to transact business; (2)AAthe name of each parent and affiliated

organization of the seller that: (A)AAwill transact business with a purchaser

relating to sales solicited by the seller; or (B)AAaccepts responsibility for statements made by, or acts of, the seller relating to sales solicited by the seller; (3)AAthe seller 's: (A)AAform of business; and (B)AAplace of organization; (4)AAfor a seller who is a corporation, a copy of the

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seller 's certificate of formation and bylaws; (5)AAfor a seller who is a partnership, a copy of the partnership agreement; (6)AAfor a seller who is operating under an assumed business name, the location where the assumed name has been

registered; (7)AAfor any parent or affiliated organization

disclosed under Subdivision (2), the applicable information that is required of a seller under Subdivisions (3) through (6); (8)AAthe complete street address of each location of the seller, designating the principal location from which the

seller will be transacting business; (9)AAif the principal business location of the seller is not in this state, a designation of the seller 's main location in this state; (10)AAa listing of each telephone number to be used by the seller and the address where each telephone using the number is located; (11)AAthe name and title of each of the seller 's

officers, directors, trustees, general and limited partners, and owners, as applicable, and the name of each of those persons who has management responsibilities in connection with the seller 's

business activities; (12)AAfor each person whose name is disclosed under Subdivision (11) and for each seller who is a sole proprietor: (A)AAthe principal residence; (B)AAthe person 's date of birth; and (C)AAthe person 's driver 's license; (13)AAthe name and principal residence address of each person the seller leaves in charge at each location from which the seller transacts business in this state and the business location at which each of those persons is or will be in charge; (14)AAthe name and principal residence address of each salesperson who solicits on the seller 's behalf or a copy of the "Employer 's Quarterly Report" for employee wages the seller files number of and state that issued the complete address of the person 's

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with the Texas Workforce Commission and the name the salesperson uses while soliciting; (15)AAthe name and address of the seller 's agent in this state, other than the secretary of state, who is authorized to receive service of process; and (16)AAthe name and address of each financial

institution with which the seller makes banking or similar monetary transactions and the identification number of each of the seller 's accounts in each institution. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec.

302.152.AADISCLOSURE

OF

CERTAIN

CONVICTIONS,

PLEAS,

JUDGMENTS, ORDERS, BANKRUPTCIES, AND REORGANIZATIONS.A (a)AAWith respect to the seller and each person identified under Section 302.151(11) or (13), a registration statement must identify each person: (1)AAwho contendere to: (A)AAan offense involving an alleged violation of this chapter; or (B)AAfraud, theft, embezzlement, fraudulent has been convicted of or pleaded nolo

conversion, or misappropriation of property; (2)AAagainst whom a final judgment or order has been entered in a civil or administrative action, including a stipulated judgment or order, in which the complaint or petition alleged: (A)AAacts constituting: (i)AAa violation of this chapter; or (ii)AAfraud, theft, embezzlement,

fraudulent conversion, or misappropriation of property; (B)AAthe representations property; or (C)AAthe use of business practices; (3)AAwho is subject to an injunction or restrictive court order relating to business activity as the result of an action unfair, unlawful, or deceptive in an use to of sell false or or misleading dispose of

attempt

otherwise

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brought by a federal, state, or local public agency, including an action affecting a vocational license; or (4)AAwho, during the previous seven tax years: (A)AAhas filed in bankruptcy; (B)AAhas been adjudged a bankrupt; (C)AAhas been reorganized because of insolvency; or (D)AAhas trustee, or general or been a principal, partner of, director, or had officer,

limited

management

responsibilities for, a corporation, partnership, joint venture, or other business entity that has filed in bankruptcy, been

adjudged a bankrupt, or been reorganized because of insolvency while the person held that position or on or before the first anniversary of the date on which the person last held that position. (b)AAFor each person identified under Subsection (a)(1),

(2), or (3), the statement must disclose: (1)AAthe court that received the plea of nolo

contendere or the court or administrative agency that rendered the conviction, judgment, or order; (2)AAthe docket number of the matter; (3)AAthe date the plea of nolo contendere was received or the date of the conviction, judgment, or order; and (4)AAthe name of any government agency that brought the action resulting in the plea or the conviction, judgment, or order. (c)AAFor each person identified under Subsection (a)(4), the statement must disclose: (1)AAthe bankruptcy, insolvency; (2)AAthe reorganization order; (3)AAthe court having jurisdiction; and (4)AAthe docket number of the matter. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009. date of the filing, judgment, or name a and location or of the person filing in of

adjudged

bankrupt,

reorganized

because

Sec.

302.153.AADISCLOSURE

OF

CERTAIN

SALES

INFORMATION.A

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(a)AAA registration statement must be accompanied by: (1)AAa description of the items the seller is offering for sale; (2)AAa copy of all sales information and literature, including regarding scripts, the outlines, of instructions, telephone and information sample

conduct

solicitations,

introductions, sample closings, product information, and contest or premium-award information, that the seller provides to

salespersons or about which the seller informs salespersons; (3)AAa copy of all written material the seller sends to any purchaser; and (4)AAas applicable, the information and documents

specified by Subsections (b) through (h). (b)AAIf salesperson the seller represents or imply, or to implies, a or directs that a

to

represent

purchaser

the

purchaser will receive a specific item, including a certificate that the purchaser must redeem to obtain the item described in the certificate, or one or more items from among designated items, regardless of whether the items are designated as gifts, premiums, bonuses, or prizes or otherwise, the registration statement must be accompanied by: (1)AAa list of the items described; (2)AAthe valuation; (3)AAthe price the seller paid for each item to the seller 's supplier and the name, address, and telephone number of each item 's supplier; (4)AAall receive the item; and (5)AAif the purchaser will notAAreceive all of the rules and terms a purchaser must meet to value of each item and the basis for the

items described by the seller: (A)AAthe manner in which the seller decides which item a particular purchaser is to receive; (B)AAfor each item, the odds of a single purchaser receiving the item;AAand (C)AAthe name and address of each purchaser who has received, during the preceding 12 months, the item withAAthe

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greatest value and the item with the lowest odds of being received. (c)AAIf the seller is offering an item that the seller does not manufacture or supply, the registration statement must be

accompanied by: (1)AAthe name, address, and telephone number of each of the seller 's suppliers; (2)AAa description of each item provided by each

supplier named in Subdivision (1); and (3)AAas applicable, the information and documents

specified by Subsections (d) through (g). (d)AAIf the seller is offering an item that the seller does not manufacture or supply and the possession of the item is to be retained by the seller or will not be transferred to the purchaser until the purchaser has paid in full, the registration statement must be accompanied by: (1)AAthe address of each location where the item will be kept; (2)AAif the item is not kept on premises owned by the seller or at an address registered under Section 302.151(8) or (9), the name of the owner of the business at which the item will be kept;AAand (3)AAa evidences the copy of any contract store or the other item document at the that

seller 's

right

to

address

designated under Subdivision (2). (e)AAIf the seller is offering an item that the seller does not manufacture or supply and the seller is not selling the item from the seller 's own inventory but purchases the item to fill an order previously taken from a purchaser, the registration statement must be accompanied by a copy of each contract or other document that evidences the seller 's ability to call on suppliers to fill the seller 's orders. (f)AAIf the seller is offering an item that the seller does not manufacture or supply and the seller represents to purchasers that the seller has insurance or a surety bond relating to a

purchaser 's purchase of an item, the registration statement must be accompanied by a copy of each insurance policy or bond. (g)AAIf the seller is offering an item that the seller does

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not manufacture or supply and the seller makes a representation regarding the post-purchase earning or profit potential of an item, the registration statement must be accompanied by: (1)AAdata to substantiate the claims made; and (2)AAif the representation relates to previous sales made by the seller or a related entity, substantiating data based on the experiences of at least 50 percent of purchasers of that

particular type of item from the seller or related entity during the preceding six months, including: (A)AAthe period the seller or related entity has been selling the particular type of item being offered; (B)AAthe number of purchasers of the item known to the seller or related entity to have made at least the same earnings or profit as those represented; and (C)AAthe percentage that the number disclosed

under Paragraph (B) represents of the total number of purchasers from the seller or related entity of the particular type of item offered. (h)AAIf the seller is offering to sell an interest in an oil, gas, or mineral field, well, or exploration site, the registration statement must be accompanied by: (1)AAany ownership interest of the seller in each

field, well, or site being offered for sale; (2)AAthe total number of interests to be sold in each field, well, or site being offered for sale; and (3)AAif, in selling an interest in any particular

field, well, or site, reference is made to an investigation of the field, well, or site by the seller or anyone else: (A)AAthe name, business address, telephone

number, and professional credentials of the person who conducted the investigation; and (B)AAa copy of the report and other documents

relating to the investigation prepared by the person who conducted the investigation. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

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SUBCHAPTER E. ADDITIONAL INFORMATION FROM SELLER Sec. 302.201.AAINFORMATION REQUIRED TO BE POSTED OR

AVAILABLE AT SELLER 'S BUSINESS LOCATION.A (a)AAA seller shall post the registration certificate in a conspicuous place at the location for which the certificate is issued. (b)AAA seller shall post in close proximity to the

registration certificate the name of each individual in charge of the location. (c)AAA seller shall make available at each of the seller 's business locations a copy of the entire registration statement and any addenda for inspection by a purchaser or by a representative of a government agency. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.202.AADISCLOSURES REQUIRED BEFORE PURCHASE.AAWhen a telephone solicitation is made and before consummation of any sales transaction, a seller shall provide to each purchaser: (1)AAthe complete street address of the location from which the salesperson is calling the purchaser and, if different, the complete street address of the seller 's principal location; (2)AAif the seller represents or implies that a

purchaser will receive without charge a specified item or one item from among designated items, regardless of whether the items are designated as gifts, premiums, bonuses, prizes, or otherwise: (A)AAthe information required to be filed by

Sections 302.153(b)(4) and (5)(A) and (B), as appropriate; and (B)AAthe total number of individuals who have

actually received from the seller during the preceding 12 months the item having the greatest value and the item with the smallest odds of being received; (3)AAif the seller is offering to sell an interest in an oil, gas, or mineral field, well, or exploration site, the

information required by Section 302.153(h); and (4)AAif the seller represents that an item is being offered at a price below that usually charged for the item, the name of the item 's manufacturer.

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Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec.

302.203.AAREFERENCE

TO

COMPLIANCE

WITH

STATUTE

PROHIBITED.AAA seller may not make or authorize the making of a reference purchaser. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009. to the seller 's compliance with this chapter to a

SUBCHAPTER F. Sec. 302.251.AAVIOLATION OF

OFFENSES CERTAIN PROVISIONS.A (a)AAA

person commits an offense if the person knowingly violates Section 302.101,AA302.105, 302.201, 302.202, or 302.203.AAEach violation constitutes a separate offense. (b)AAAn offense under this section is a Class A misdemeanor. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec.

302.252.AAACTING

AS

SALESPERSON

FOR

UNREGISTERED

SELLER.A (a)AAA person commits an offense if the person knowingly acts as a salesperson on behalf of of a seller who violates the

registration

requirements

this

chapter.AAEach

violation

constitutes a separate offense. (b)AAAn offense under this section is a Class A misdemeanor. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec.

302.253.AAREQUEST

FOR CREDIT

CARD

ACCOUNT

NUMBER

OR

CHECKING ACCOUNT NUMBER AFTER OFFER OF FREE ITEM.A (a)AAA seller commits an offense if the seller knowingly: (1)AArepresents or implies that a purchaser will

receive an item without charge, regardless of whether the item is designated as a gift, premium, bonus, or prize or otherwise; and (2)AArequests a credit card account number or checking account number from the purchaser to charge to the credit card account or debit from the checking account an amount as a condition

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precedent to the purchaser 's receipt of the item. (b)AAAn offense under this section is a Class A misdemeanor. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER G.

ENFORCEMENT

Sec. 302.301.AAINJUNCTION.A (a)AAThe attorney general may bring an action to enjoin a person from violating this chapter. (b)AAThe attorney general shall notify the defendant of the alleged prohibited conduct not later than the seventh day before the date the action is filed, except that notice is not required if the attorney general intends to request that the court issue a temporary restraining order. (c)AAThe attorney general is entitled to recover all

reasonable costs of prosecuting the action, including court costs and investigation costs, deposition expenses, witness fees, and attorney 's fees. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.302.AACIVIL PENALTIES.A (a)AAA person who violates this chapter is subject to a civil penalty of not more than $5,000 for each violation. (b)AAA person who violates an injunction issued under Section 302.301 is liable to this state for a civil penalty of not more than: (1)AA$25,000 for each violation of the injunction; and (2)AA$50,000 for all violations of the injunction. (c)AAThe attorney general may bring an action to recover a civil penalty under Subsection (b) in the court that issued the original injunction. (d)AAThe party bringing the action also is entitled to

recover all reasonable costs of prosecuting the action, including court costs and investigation costs, deposition expenses, witness fees, and attorney 's fees. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

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Sec. 302.303.AADECEPTIVE TRADE PRACTICES.A (a)AAA violation of this chapter is a false, misleading, or deceptive act or practice under Subchapter E, Chapter 17. (b)AAA public or private right or remedy prescribed by

Subchapter E, Chapter 17, may be used to enforce this chapter. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.304.AAACTION TO RECOVER AGAINST SECURITY.A (a)AAA person injured by a seller 's bankruptcy or by a seller 's breach of an agreement entered into during a telephone solicitation may bring an action to recover against the security required under Section 302.107. (b)AAThe underAASection liability 302.107 may of the surety the on a bond of provided the bond,

not

exceed

amount

regardless of the number of claims filed or the aggregate amount claimed.AAIf the amount claimed exceeds the amount of the bond, the surety shall deposit the amount of the bond with the secretary of state for distribution to claimants entitled to recovery, and the surety is then relieved of all liability under the bond. Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.

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