84R6957 T
By: Seliger S.B. No. 1392
A BILL TO BE ENTITLED
AN ACT
relating to service contracts, vehicle protection products and loss
damage waivers for heavy equipment; requiring an occupational
license; expanding the applicability of an occupational license.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1304.002, Occupations Code, is amended
by amending Subdivision (4) and adding Subdivision (5-b) to read as
follows:
Sec. 1304.002. DEFINITIONS. In this chapter:
(4) "Consumer" means a person [an individual] who, for
a purpose other than resale, buys tangible personal property that
is:
(A) distributed in commerce; and
(B) normally used for personal, family, [or]
household, [purposes and not for] business or research purposes.
(5-b) "Heavy equipment" has the meaning assigned by
Section 23.1241, Tax Code.
SECTION 2. Section 1304.003(c), Occupations Code, is
amended to read as follows:
Sec. 1304.003. SERVICE CONTRACT.
(c) For purposes of Subsection (a), normal wear for a motor
vehicle or heavy equipment may include minor and reasonable wear
and tear sustained [that a vehicle sustains] in everyday ordinary
operation including:
(1) small dents, dings, and creases repairable by the
process of paintless dent removal without affecting the existing
paint finish and without replacing [vehicle] body panels or
sanding, bonding, or painting;
(2) small windshield chips and cracks repairable
without replacement of the entire windshield;
(3) worn tire tread;
(4) worn interior fabric or carpet items; and
(5) tire and wheel damage resulting from ordinary road
hazards such as potholes, rocks, wood debris, metal parts, glass,
plastic, or composite scraps.
SECTION 3. Section 2306.002, Occupations Code, is amended
as follows:
(8) "Vehicle" includes a "motor vehicle" as defined by
Section 2301.002(23), Occupations Code, or "heavy equipment" as
defined by Section 23.1241, Tax Code.
(9) "Vehicle protection product" means a product or
system, which includes a written warranty, that is:
(A) installed on or applied to a vehicle;
(B) designed to prevent loss or damage to a
vehicle from a specific cause; and
(C) subject to the limitation of Section
2306.003.
SECTION 4. Business and Commerce Code, Title 5, Subtitle B,
is amended to create Chapter 93 to read as follows:
Chapter 93. HEAVY EQUIPMENT LOSS DAMAGE WAIVER
Sec. 93.001. DEFINITIONS. In this chapter:
(1) "Customer" means a person who rents heavy
equipment under a rental agreement.
(2) "Heavy equipment" has the meaning found under
Section 23.1241, Tax Code.
(3) "Heavy equipment loss damage waiver" means a
merchant's agreement to not hold a customer liable for loss from all
or part of any damage to heavy equipment.
(4) "Merchant" means a person who, in the ordinary
course of business, regularly rents, offers to rent, or arranges
for the rental of heavy equipment under a rental agreement.
(5) "Rental agreement" means an agreement under which
a customer may pay a fee and uses heavy equipment.
Sec. 93.002. CONTRACT FOR WAIVER. A customer may contract
with a merchant for a heavy equipment loss damage waiver.
Sec. 92.003. RESTRICTIONS ON MERCHANT CONCERNING WAIVER. A
merchant may not:
(1) sell a heavy equipment loss damage waiver unless:
(A) the contract containing the waiver complies
with this chapter; and
(B) the customer agrees to the waiver in writing.
(2) impose or require the purchase of a heavy
equipment loss damage waiver when entering into a rental agreement.
Sec. 92.004. REQUIRED NOTICE IN WAIVER. A contract that
offers a loss damage waiver must include the following notice:
"This contract offers an optional loss damage waiver for an
additional charge to cover your responsibility for loss of or
damage to the heavy equipment. You do not have to purchase this
coverage. Before deciding whether or not to purchase this loss
damage waiver, you may consider whether your insurance policies
afford you coverage for loss of or damage to items rented and the
amount of the deductible you would pay under your policy."
Sec. 92.005. STATEMENT OF TOTAL CHARGE. A heavy equipment
loss damage waiver must include a statement of the total charge for
the waiver.
Sec. 92.006. AUTHORIZED EXCLUSIONS. A heavy equipment loss
damage waiver may exclude:
(1) loss or damage to the heavy equipment that is
caused by an unexplained disappearance or abandonment of the
commercial equipment;
(2) damage that is intentionally caused by the
customer; or
(3) damage that results from the customer's wilful or
wanton misconduct.
Sec. 92.007. RELATIONSHIP TO INSURANCE. A heavy equipment
loss damage waiver is not insurance.
Sec. 91.008. CIVIL PENALTY. A merchant that violates this
chapter is liable for a civil penalty in an amount of not less than
$500 or more than $1,000 for each act of violation.
Sec. 91.009. INJUNCTION. A person injured or threatened
with injury by a violation of this chapter may seek injunctive
relief against the person committing or threatening to commit the
violation.
Sec. 91.010. SUIT FOR CIVIL PENALTY OR INJUNCTIVE RELIEF.
The attorney general or a county or district attorney may bring an
action in the name of the state for a civil penalty under Section
91.008, injunctive relief under Section 91.009, or both.
SECTION 5. The changes in law made by this Act apply to a
service contract or vehicle protection product contract entered
into on or after the effective date of this Act. A service contract
or vehicle protection product contract entered into before the
effective date of this Act is governed by the law in effect when the
contract was entered into, and the former law is continued in effect
for that purpose.
SECTION 6. This Act takes effect September 1, 2015.