81R3988 BEF-F
By: Geren H.B. No. 1706
A BILL TO BE ENTITLED
AN ACT
relating to the licensing and regulation of identity recovery
service providers and the inclusion of identity recovery service
agreements in certain service contracts and vehicle protection
products; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1304.003, Occupations Code, is amended
by adding Subsection (b-1) to read as follows:
(b-1) A service contract sold by a person licensed under
Chapter 2301 to the purchaser of a motor vehicle at the time the
purchaser enters into a retail installment transaction, as defined
by Section 348.001, Finance Code, may also include an agreement to
provide identity recovery services, as defined by Section 1705.001.
An agreement under this subsection may not include an agreement
solely to provide credit monitoring services. Section 1304.158(c)
does not apply to an agreement under this subsection.
SECTION 2. Title 10, Occupations Code, is amended by adding
Chapter 1705 to read as follows:
CHAPTER 1705. IDENTITY RECOVERY SERVICE PROVIDERS
Sec. 1705.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Texas Commission of
Licensing and Regulation.
(2) "Department" means the Texas Department of
Licensing and Regulation.
(3) "Identifying information" has the meaning
assigned by Section 32.51, Penal Code.
(4) "Identity recovery service provider" means a
person who holds a license issued under this chapter to provide
identity recovery services.
(5) "Identity recovery services" means services
required to:
(A) recover a person's identifying information
after the identifying information has been obtained without the
person's consent;
(B) prevent the continued unauthorized use of a
person's identifying information; and
(C) reverse damage caused by the unauthorized use
of a person's identifying information.
Sec. 1705.002. RULES. (a) The commission shall adopt rules:
(1) providing license requirements for identity
recovery service providers; and
(2) regulating the practice by identity recovery
service providers.
(b) Rules adopted under this chapter must:
(1) protect the public health, safety, and welfare;
and
(2) ensure that identity recovery service providers
are able to competently provide identity recovery services.
Sec. 1705.003. ADMINISTRATION BY DEPARTMENT. The
department shall administer this chapter.
Sec. 1705.004. APPLICABILITY OF OTHER LAW. (a) Chapter 51
applies to the licensing and regulation of persons under this
chapter.
(b) Chapter 1702 does not apply to an identity recovery
service provider.
Sec. 1705.005. LICENSE REQUIRED. A person may not provide
identity recovery services unless the person holds an identity
recovery service provider license issued under this chapter.
Sec. 1705.006. COLLECTION OF FEES. A retail installment
contract under Chapter 348, Finance Code, may include as a separate
charge an amount for an agreement to provide identity recovery
services.
SECTION 3. Subchapter A, Chapter 2306, Occupations Code, is
amended by adding Section 2306.0035 to read as follows:
Sec. 2306.0035. ADDITIONAL SERVICES. A vehicle protection
product may also include an agreement to provide identity recovery
services, as defined by Section 1705.001.
SECTION 4. Not later than January 31, 2010, the Texas
Commission of Licensing and Regulation shall:
(1) adopt rules under Section 1705.002, Occupations
Code, as added by this Act; and
(2) begin issuing identity recovery service provider
licenses under Chapter 1705, Occupations Code, as added by this
Act.
SECTION 5. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2009.
(b) The following provisions take effect June 1, 2010:
(1) Section 1304.003(b-1), Occupations Code, as added
by this Act;
(2) Section 1705.005, Occupations Code, as added by
this Act; and
(3) Section 2306.0035, Occupations Code, as added by
this Act.