Texas 2009 - 81st Regular

Texas Senate Bill SB99 Compare Versions

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11 2009S0005-1 10/23/08
22 By: Lucio S.B. No. 99
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to wireless telephone consumer protections.
88 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. This Act may be cited as the Cell Phone Lemon
1010 Law.
1111 SECTION 2. Title 12, Business & Commerce Code, is amended by
1212 adding Chapter 605 to read as follows:
1313 CHAPTER 605. WIRELESS TELEPHONES AND CONTRACTS
1414 Sec. 605.001. DEFINITIONS. In this chapter:
1515 (1) "Wireless telephone" means a telephone that
1616 operates without a physical wireline connection to the wireless
1717 telephone service provider's equipment. The term includes cellular
1818 and mobile telephones.
1919 (2) "Wireless telephone service provider" includes a
2020 wireless telephone service provider's dealers, distributors, and
2121 agents.
2222 Sec. 605.002. CONSUMER OPTIONS. (a) If, within the period
2323 of a contract for wireless telephone service, the wireless
2424 telephone sold in conjunction with the contract for wireless
2525 telephone service requires repair or replacement on three or more
2626 occasions, the consumer may, in lieu of having the telephone
2727 repaired or replaced on the third or a subsequent occasion, choose
2828 to either:
2929 (1) cancel the contract for wireless telephone service
3030 without paying any early termination fee, penalty, or charge; or
3131 (2) upgrade or downgrade the consumer's telephone.
3232 (b) If a consumer chooses to upgrade the consumer's wireless
3333 telephone under Subsection (a)(2), the consumer shall pay the
3434 difference between the price of the consumer's current telephone
3535 and the "best promotional price" of the telephone to which the
3636 consumer is upgrading.
3737 (c) If a consumer chooses to downgrade the consumer's
3838 wireless telephone under Subsection (a)(2), the wireless telephone
3939 service provider shall credit the consumer with the difference
4040 between the price of the consumer's current telephone and the "best
4141 promotional price" of the telephone to which the consumer is
4242 downgrading.
4343 (d) If a consumer chooses the option of upgrading or
4444 downgrading the consumer's wireless telephone under Subsection
4545 (a)(2), the wireless telephone service provider may not use the
4646 choice as a basis for automatically renewing or extending the
4747 consumer's contract for wireless telephone service. A wireless
4848 telephone service provider must allow a consumer to upgrade or
4949 downgrade the consumer's wireless telephone under Subsection
5050 (a)(2) without the action causing a change to the consumer's
5151 current contract.
5252 Sec. 605.003. WRITTEN NOTICE. A wireless telephone service
5353 provider shall give a consumer a written statement of the
5454 consumer's rights under this chapter when a sale is made to which
5555 this chapter applies.
5656 Sec. 605.004. DAMAGE CAUSED BY CONSUMER ACTION. This
5757 chapter does not apply to any repair to or replacement of a wireless
5858 telephone that was damaged or failed to work properly as a result of
5959 some harmful action by the consumer. The types of damage creating
6060 an inference of harmful consumer action include:
6161 (1) equipment showing signs of water or other liquid
6262 damage;
6363 (2) equipment showing signs of physical impact;
6464 (3) a scratched or broken casing;
6565 (4) components or buttons in a condition that
6666 indicates undue force was used; and
6767 (5) other external damage.
6868 Sec. 605.005. NONAPPLICABILITY. This chapter does not
6969 apply to:
7070 (1) quality or lack of services, including cellular or
7171 other subscribed services available to the consumer;
7272 (2) contractually agreed upon rates; or
7373 (3) equipment compatibility issues.
7474 Sec. 605.006. DECEPTIVE TRADE PRACTICE. A violation of
7575 this chapter is a false, misleading, or deceptive act or practice as
7676 defined by Section 17.46(b), and any remedy under Subchapter E,
7777 Chapter 17, is available for a violation of this chapter.
7878 SECTION 3. This Act applies only to a retail sale of a new
7979 wireless telephone to a consumer by a wireless telephone service
8080 provider in conjunction with a contract for wireless telephone
8181 service made on or after the effective date of this Act. A retail
8282 sale of a new wireless telephone to a consumer by a wireless
8383 telephone service provider in conjunction with a contract for
8484 wireless telephone service made before the effective date of this
8585 Act is governed by the law as it existed immediately before the
8686 effective date of this Act, and that law is continued in effect for
8787 that purpose.
8888 SECTION 4. This Act takes effect September 1, 2009.