Texas 2013 - 83rd Regular

Texas Senate Bill SB1388 Compare Versions

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Old	New	Differences
1	1	83R26993 DDT-F
2	2	By: Carona S.B. No. 1388
3	3	(Bohac)
4	4	Substitute the following for S.B. No. 1388: No.
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to identity recovery services; imposing a fee.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 348.208, Finance Code, is amended by
12	12	amending Subsection (b) and adding Subsection (b-1) to read as
13	13	follows:
14	14	(b) A retail installment contract may include as a separate
15	15	charge an amount for:
16	16	(1) motor vehicle property damage or bodily injury
17	17	liability insurance;
18	18	(2) mechanical breakdown insurance;
19	19	(3) participation in a motor vehicle theft protection
20	20	plan;
21	21	(4) insurance to reimburse the retail buyer for the
22	22	amount computed by subtracting the proceeds of the buyer's basic
23	23	collision policy on the motor vehicle from the amount owed on the
24	24	vehicle if the vehicle has been rendered a total loss;
25	25	(5) a warranty or service contract relating to the
26	26	motor vehicle;
27	27	(6) an identity recovery service contract [defined by
28	28	Section 1306.003, Occupations Code]; or
29	29	(7) a debt cancellation agreement if the agreement is
30	30	included as a term of a retail installment contract under Section
31	31	348.124.
32	32	(b-1) In this section, "identity recovery service contract"
33	33	means an agreement:
34	34	(1) to provide identity recovery, as defined by
35	35	Section 1304.003, Occupations Code;
36	36	(2) that is entered into for a separately stated
37	37	consideration and for a specified term; and
38	38	(3) that is financed through a retail installment
39	39	contract.
40	40	SECTION 2. Section 353.207, Finance Code, is amended by
41	41	amending Subsection (b) and adding Subsection (b-1) to read as
42	42	follows:
43	43	(b) A retail installment contract may include as a separate
44	44	charge an amount for:
45	45	(1) motor vehicle property damage or bodily injury
46	46	liability insurance;
47	47	(2) mechanical breakdown insurance;
48	48	(3) participation in a motor vehicle theft protection
49	49	plan;
50	50	(4) insurance to pay all or part of the amount computed
51	51	by subtracting the proceeds of the retail buyer's basic collision
52	52	policy on the commercial vehicle from the amount owed on the vehicle
53	53	in the event of a total loss or theft of the vehicle;
54	54	(5) a warranty or service contract relating to the
55	55	commercial vehicle;
56	56	(6) an identity recovery service contract [defined by
57	57	Section 1306.003, Occupations Code]; or
58	58	(7) a debt cancellation agreement.
59	59	(b-1) In this section, "identity recovery service contract"
60	60	means an agreement:
61	61	(1) to provide identity recovery, as defined by
62	62	Section 1304.003, Occupations Code;
63	63	(2) that is entered into for a separately stated
64	64	consideration and for a specified term; and
65	65	(3) that is financed through a retail installment
66	66	contract.
67	67	SECTION 3. Sections 1304.003(a) and (b), Occupations Code,
68	68	are amended to read as follows:
69	69	(a) In this chapter:
70	70	(1) "Identity recovery" means a process, through a
71	71	limited power of attorney and the assistance of an identity
72	72	recovery expert, that returns the identity of an identity theft
73	73	victim to pre-identity theft event status.
74	74	(2) "Service [, "service] contract" means an
75	75	agreement[:
76	76	[(1)] that is entered into for a separately stated
77	77	consideration and for a specified term[; and
78	78	[(2)] under which a provider agrees to:
79	79	(A) repair, replace, or maintain a product, or
80	80	provide indemnification for the repair, replacement, or
81	81	maintenance of a product, for operational or structural failure or
82	82	damage caused by a defect in materials or workmanship or by normal
83	83	wear; or
84	84	(B) provide identity recovery, if the service
85	85	contract is financed under Chapter 348 or 353, Finance Code.
86	86	(b) A service contract described by Subsection (a)(2)(A)
87	87	may also provide for:
88	88	(1) incidental payment or indemnity under limited
89	89	circumstances, including towing, rental, and emergency road
90	90	service;
91	91	(2) the repair or replacement of a product for damage
92	92	resulting from a power surge or for accidental damage incurred in
93	93	handling the product; or
94	94	(3) identity recovery, [as defined by Section
95	95	1306.002,] if the service contract is financed under Chapter 348 or
96	96	353, Finance Code.
97	97	SECTION 4. Subchapter C, Chapter 1304, Occupations Code, is
98	98	amended by adding Section 1304.1035 to read as follows:
99	99	Sec. 1304.1035. IDENTITY RECOVERY SERVICE CONTRACT REPORT;
100	100	FEE. Not later than the 30th day after the date each calendar
101	101	quarter ends, a provider must report to the department the number of
102	102	service contracts described by Section 1304.003(a)(2)(B) that were
103	103	sold or issued to consumers in this state during the most recent
104	104	calendar quarter and must submit a fee of $1 for each of those
105	105	service contracts to the department. The report and fee are
106	106	required only for a service contract that provides only for
107	107	identity recovery services.
108	108	SECTION 5. Section 1304.104, Occupations Code, is amended
109	109	to read as follows:
110	110	Sec. 1304.104. INFORMATION CONCERNING NUMBER OF SERVICE
111	111	CONTRACTS SOLD OR ISSUED. Information concerning the number of
112	112	service contracts sold or issued by a provider that is submitted
113	113	under Section 1304.103 or 1304.1035 is a trade secret to which
114	114	Section 552.110, Government Code, applies.
115	115	SECTION 6. Section 2306.003(c), Occupations Code, is
116	116	amended to read as follows:
117	117	(c) A vehicle protection product may also include identity
118	118	recovery, as defined by Section 1304.003 [1306.002], if the vehicle
119	119	protection product is financed under Chapter 348 or 353, Finance
120	120	Code.
121	121	SECTION 7. Chapter 1306, Occupations Code, is repealed.
122	122	SECTION 8. (a) The changes in law made by this Act apply
123	123	only to a contract entered into or renewed on or after the effective
124	124	date of this Act. A contract entered into or renewed before the
125	125	effective date of this Act is governed by the law in effect
126	126	immediately before the effective date of this Act, and that law is
127	127	continued in effect for that purpose.
128	128	(b) The repeal of Chapter 1306, Occupations Code, by this
129	129	Act does not apply to a violation of that chapter that occurs before
130	130	the effective date of the repeal. A violation that occurs before
131	131	the effective date of the repeal is governed by the law as it
132	132	existed on the date the violation occurred, and the former law is
133	133	continued in effect for that purpose. For purposes of this
134	134	subsection, a violation occurred before the effective date of the
135	135	repeal if any element of the violation occurred before that date.
136	136	SECTION 9. This Act takes effect September 1, 2013.