Texas 2011 - 82nd Regular

Texas House Bill HB972 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	82R17939 JE-D
2	2	By: Hartnett H.B. No. 972
3	3	Substitute the following for H.B. No. 972:
4	4	By: Quintanilla C.S.H.B. No. 972
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the cancellation of travel club membership agreements;
10	10	providing a civil penalty.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Title 12, Business & Commerce Code, is amended by
13	13	adding Chapter 601A to read as follows:
14	14	CHAPTER 601A. CANCELLATION OF AGREEMENT FOR TRAVEL CLUB MEMBERSHIP
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 601A.001. DEFINITIONS. In this chapter:
17	17	(1) "Purchaser" means an individual who enters into an
18	18	agreement with a seller to purchase a travel club membership.
19	19	(2) "Seller" means a person who offers to sell or sells
20	20	a travel club membership.
21	21	(3) "Travel club membership" means a membership that
22	22	gives its members the right to purchase or obtain travel services
23	23	from or through a seller.
24	24	(4) "Travel service" means the arranging or booking
25	25	of:
26	26	(A) a vacation or travel package;
27	27	(B) a reservation for rental of a motor vehicle;
28	28	(C) a ticket for domestic or foreign travel by
29	29	any mode of transportation; or
30	30	(D) a hotel or other lodging.
31	31	Sec. 601A.002. APPLICABILITY OF CHAPTER. (a) This chapter
32	32	applies only to an agreement for the purchase of a travel club
33	33	membership in which:
34	34	(1) the seller or the seller's agent engages in a
35	35	personal solicitation of a sale to an individual; and
36	36	(2) the agreement is for consideration that exceeds
37	37	$25, payable in installments or in cash.
38	38	(b) This chapter does not apply to an agreement relating to:
39	39	(1) a timeshare plan that is in compliance with
40	40	Chapter 221, Property Code; or
41	41	(2) the sale of a product or service or a program
42	42	related to, offered in conjunction with, or used to promote the
43	43	timeshare plan.
44	44	[Sections 601A.003-601A.050 reserved for expansion]
45	45	SUBCHAPTER B. PURCHASER'S RIGHT TO CANCEL AGREEMENT; REQUIRED
46	46	NOTICES
47	47	Sec. 601A.051. PURCHASER'S RIGHT TO CANCEL AGREEMENT FOR
48	48	TRAVEL CLUB MEMBERSHIP. (a) In addition to any other rights or
49	49	remedies available, a purchaser may cancel an agreement for a
50	50	travel club membership not later than midnight of the fifth
51	51	business day after the date the purchaser signs the agreement.
52	52	(b) A seller may retain payments made by the purchaser for
53	53	specific travel services used in connection with a travel club
54	54	membership agreement before the date of the cancellation period
55	55	prescribed by Subsection (a).
56	56	Sec. 601A.052. NOTICE OF PURCHASER'S RIGHT TO CANCEL
57	57	REQUIRED. (a) A seller must provide a purchaser with a copy of an
58	58	agreement for a travel club membership at the time of the
59	59	agreement's execution.
60	60	(b) The copy of the agreement provided under Subsection (a)
61	61	must:
62	62	(1) be in the same language as that principally used in
63	63	the oral sales presentation;
64	64	(2) contain the date of the agreement;
65	65	(3) contain the name and address of the seller; and
66	66	(4) contain a statement:
67	67	(A) in immediate proximity to the space reserved
68	68	in the agreement for the signature of the purchaser; and
69	69	(B) in at least 10-point boldfaced font in
70	70	substantially the following form:
71	71	"YOU, THE PURCHASER, MAY CANCEL THIS AGREEMENT FOR TRAVEL
72	72	CLUB MEMBERSHIP AT ANY TIME BEFORE MIDNIGHT OF THE FIFTH BUSINESS
73	73	DAY AFTER THE DATE YOU SIGN THIS AGREEMENT. SEE THE ATTACHED NOTICE
74	74	OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT."
75	75	Sec. 601A.053. COMPLETED CANCELLATION FORM REQUIRED. (a)
76	76	A seller must attach to the copy of a travel club membership
77	77	agreement a completed notice of cancellation form in duplicate.
78	78	The form must:
79	79	(1) be easily detachable;
80	80	(2) be in the same language as the agreement; and
81	81	(3) contain the following information and statements
82	82	in at least 10-point boldfaced font:
83	83	"NOTICE OF CANCELLATION
84	84	_________________
85	85	(enter date of agreement)
86	86	"YOU MAY CANCEL THIS AGREEMENT FOR TRAVEL CLUB MEMBERSHIP,
87	87	WITHOUT ANY PENALTY OR OBLIGATION, WITHIN FIVE BUSINESS DAYS AFTER
88	88	THE ABOVE DATE UNLESS YOU HAVE ALREADY USED ANY TRAVEL SERVICES
89	89	PROVIDED IN CONNECTION WITH THIS AGREEMENT.
90	90	"IF YOU HAVE ALREADY USED ANY TRAVEL SERVICES PROVIDED IN
91	91	CONNECTION WITH THIS AGREEMENT, YOU MAY STILL CANCEL THIS
92	92	TRANSACTION WITHIN FIVE BUSINESS DAYS AFTER THE DATE OF THE
93	93	AGREEMENT, BUT YOU ARE NOT ENTITLED TO A REFUND OF ANY PRIOR
94	94	PAYMENTS MADE FOR THE SPECIFIC TRAVEL SERVICES USED.
95	95	"IF YOU CANCEL, ANY PAYMENTS MADE BY YOU UNDER THIS AGREEMENT
96	96	THAT WERE NOT FOR SPECIFIC TRAVEL SERVICES USED WILL BE RETURNED
97	97	WITHIN 10 BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR
98	98	CANCELLATION NOTICE.
99	99	"TO CANCEL THIS AGREEMENT, MAIL OR DELIVER A SIGNED AND DATED
100	100	COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE,
101	101	INCLUDING BY E-MAIL OR FACSIMILE, TO (name of seller), AT (address,
102	102	e-mail address, and fax number of seller's place of business) NOT
103	103	LATER THAN MIDNIGHT OF (date).
104	104	I HEREBY CANCEL THIS AGREEMENT.
105	105	____
106	106	DATE
107	107	______________________
108	108	PURCHASER'S SIGNATURE."
109	109	(b) A seller may not fail to include on both copies of the
110	110	form described by Subsection (a):
111	111	(1) the name of the seller;
112	112	(2) the address, e-mail address, and fax number of the
113	113	seller's place of business;
114	114	(3) the date of the agreement; and
115	115	(4) a date not earlier than the fifth business day
116	116	after the date of the agreement by which the purchaser must give
117	117	notice of cancellation.
118	118	[Sections 601A.054-601A.100 reserved for expansion]
119	119	SUBCHAPTER C. PROHIBITED ACTS BY SELLER
120	120	Sec. 601A.101. WAIVER OF RIGHTS. A seller may not include
121	121	in an agreement for a travel club membership a waiver of any of the
122	122	rights to which a purchaser is entitled under this chapter.
123	123	Sec. 601A.102. FAILURE TO INFORM OR MISREPRESENTATION OF
124	124	RIGHT TO CANCEL. A seller may not:
125	125	(1) at the time the purchaser signs the agreement for a
126	126	travel club membership fail to inform the purchaser orally of the
127	127	right to cancel the agreement; or
128	128	(2) misrepresent in any manner the purchaser's right
129	129	to cancel.
130	130	Sec. 601A.103. FAILURE TO TAKE CERTAIN ACTIONS FOLLOWING
131	131	RECEIPT OF NOTICE OF CANCELLATION. A seller may not:
132	132	(1) fail or refuse to honor a valid cancellation under
133	133	this chapter by a purchaser; or
134	134	(2) fail before the end of the 10th business day after
135	135	the date the seller receives a valid notice of cancellation to:
136	136	(A) refund all payments made under the agreement
137	137	that were not for specific travel services used before the
138	138	cancellation period; or
139	139	(B) cancel and return any negotiable instrument
140	140	executed by the purchaser in connection with the agreement for a
141	141	travel club membership.
142	142	[Sections 601A.104-601A.150 reserved for expansion]
143	143	SUBCHAPTER D. ENFORCEMENT
144	144	Sec. 601A.151. CERTAIN AGREEMENTS VOID. An agreement
145	145	entered into in violation of this chapter is void.
146	146	Sec. 601A.152. LIABILITY FOR DAMAGES. A seller who
147	147	violates this chapter is liable to the purchaser for:
148	148	(1) actual damages suffered by the purchaser as a
149	149	result of the violation;
150	150	(2) reasonable attorney's fees; and
151	151	(3) court costs.
152	152	Sec. 601A.153. DECEPTIVE TRADE PRACTICE. A violation of
153	153	this chapter is a false, misleading, or deceptive act or practice as
154	154	defined by Section 17.46(b). In addition to any remedy under this
155	155	chapter, a remedy under Subchapter E, Chapter 17, is also available
156	156	for a violation of this chapter.
157	157	Sec. 601A.154. INJUNCTION. If the attorney general
158	158	believes that a person is violating or about to violate this
159	159	chapter, the attorney general may bring an action in the name of the
160	160	state to restrain or enjoin the person from violating this chapter.
161	161	SECTION 2. The change in law made by this Act applies only
162	162	to an agreement for a travel club membership entered into on or
163	163	after the effective date of this Act. An agreement for a travel
164	164	club membership that is entered into before the effective date of
165	165	this Act is governed by the law in effect on the date the agreement
166	166	was entered into, and the former law is continued in effect for that
167	167	purpose.
168	168	SECTION 3. This Act takes effect September 1, 2011.