Texas 2015 - 84th Regular

Texas Senate Bill SB1392 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R6957 T
2	2	By: Seliger S.B. No. 1392
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to service contracts, vehicle protection products and loss
8	8	damage waivers for heavy equipment; requiring an occupational
9	9	license; expanding the applicability of an occupational license.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 1304.002, Occupations Code, is amended
12	12	by amending Subdivision (4) and adding Subdivision (5-b) to read as
13	13	follows:
14	14	Sec. 1304.002. DEFINITIONS. In this chapter:
15	15	(4) "Consumer" means a person [an individual] who, for
16	16	a purpose other than resale, buys tangible personal property that
17	17	is:
18	18	(A) distributed in commerce; and
19	19	(B) normally used for personal, family, [or]
20	20	household, [purposes and not for] business or research purposes.
21	21	(5-b) "Heavy equipment" has the meaning assigned by
22	22	Section 23.1241, Tax Code.
23	23	SECTION 2. Section 1304.003(c), Occupations Code, is
24	24	amended to read as follows:
25	25	Sec. 1304.003. SERVICE CONTRACT.
26	26	(c) For purposes of Subsection (a), normal wear for a motor
27	27	vehicle or heavy equipment may include minor and reasonable wear
28	28	and tear sustained [that a vehicle sustains] in everyday ordinary
29	29	operation including:
30	30	(1) small dents, dings, and creases repairable by the
31	31	process of paintless dent removal without affecting the existing
32	32	paint finish and without replacing [vehicle] body panels or
33	33	sanding, bonding, or painting;
34	34	(2) small windshield chips and cracks repairable
35	35	without replacement of the entire windshield;
36	36	(3) worn tire tread;
37	37	(4) worn interior fabric or carpet items; and
38	38	(5) tire and wheel damage resulting from ordinary road
39	39	hazards such as potholes, rocks, wood debris, metal parts, glass,
40	40	plastic, or composite scraps.
41	41	SECTION 3. Section 2306.002, Occupations Code, is amended
42	42	as follows:
43	43	(8) "Vehicle" includes a "motor vehicle" as defined by
44	44	Section 2301.002(23), Occupations Code, or "heavy equipment" as
45	45	defined by Section 23.1241, Tax Code.
46	46	(9) "Vehicle protection product" means a product or
47	47	system, which includes a written warranty, that is:
48	48	(A) installed on or applied to a vehicle;
49	49	(B) designed to prevent loss or damage to a
50	50	vehicle from a specific cause; and
51	51	(C) subject to the limitation of Section
52	52	2306.003.
53	53	SECTION 4. Business and Commerce Code, Title 5, Subtitle B,
54	54	is amended to create Chapter 93 to read as follows:
55	55	Chapter 93. HEAVY EQUIPMENT LOSS DAMAGE WAIVER
56	56	Sec. 93.001. DEFINITIONS. In this chapter:
57	57	(1) "Customer" means a person who rents heavy
58	58	equipment under a rental agreement.
59	59	(2) "Heavy equipment" has the meaning found under
60	60	Section 23.1241, Tax Code.
61	61	(3) "Heavy equipment loss damage waiver" means a
62	62	merchant's agreement to not hold a customer liable for loss from all
63	63	or part of any damage to heavy equipment.
64	64	(4) "Merchant" means a person who, in the ordinary
65	65	course of business, regularly rents, offers to rent, or arranges
66	66	for the rental of heavy equipment under a rental agreement.
67	67	(5) "Rental agreement" means an agreement under which
68	68	a customer may pay a fee and uses heavy equipment.
69	69	Sec. 93.002. CONTRACT FOR WAIVER. A customer may contract
70	70	with a merchant for a heavy equipment loss damage waiver.
71	71	Sec. 92.003. RESTRICTIONS ON MERCHANT CONCERNING WAIVER. A
72	72	merchant may not:
73	73	(1) sell a heavy equipment loss damage waiver unless:
74	74	(A) the contract containing the waiver complies
75	75	with this chapter; and
76	76	(B) the customer agrees to the waiver in writing.
77	77	(2) impose or require the purchase of a heavy
78	78	equipment loss damage waiver when entering into a rental agreement.
79	79	Sec. 92.004. REQUIRED NOTICE IN WAIVER. A contract that
80	80	offers a loss damage waiver must include the following notice:
81	81	"This contract offers an optional loss damage waiver for an
82	82	additional charge to cover your responsibility for loss of or
83	83	damage to the heavy equipment. You do not have to purchase this
84	84	coverage. Before deciding whether or not to purchase this loss
85	85	damage waiver, you may consider whether your insurance policies
86	86	afford you coverage for loss of or damage to items rented and the
87	87	amount of the deductible you would pay under your policy."
88	88	Sec. 92.005. STATEMENT OF TOTAL CHARGE. A heavy equipment
89	89	loss damage waiver must include a statement of the total charge for
90	90	the waiver.
91	91	Sec. 92.006. AUTHORIZED EXCLUSIONS. A heavy equipment loss
92	92	damage waiver may exclude:
93	93	(1) loss or damage to the heavy equipment that is
94	94	caused by an unexplained disappearance or abandonment of the
95	95	commercial equipment;
96	96	(2) damage that is intentionally caused by the
97	97	customer; or
98	98	(3) damage that results from the customer's wilful or
99	99	wanton misconduct.
100	100	Sec. 92.007. RELATIONSHIP TO INSURANCE. A heavy equipment
101	101	loss damage waiver is not insurance.
102	102	Sec. 91.008. CIVIL PENALTY. A merchant that violates this
103	103	chapter is liable for a civil penalty in an amount of not less than
104	104	$500 or more than $1,000 for each act of violation.
105	105	Sec. 91.009. INJUNCTION. A person injured or threatened
106	106	with injury by a violation of this chapter may seek injunctive
107	107	relief against the person committing or threatening to commit the
108	108	violation.
109	109	Sec. 91.010. SUIT FOR CIVIL PENALTY OR INJUNCTIVE RELIEF.
110	110	The attorney general or a county or district attorney may bring an
111	111	action in the name of the state for a civil penalty under Section
112	112	91.008, injunctive relief under Section 91.009, or both.
113	113	SECTION 5. The changes in law made by this Act apply to a
114	114	service contract or vehicle protection product contract entered
115	115	into on or after the effective date of this Act. A service contract
116	116	or vehicle protection product contract entered into before the
117	117	effective date of this Act is governed by the law in effect when the
118	118	contract was entered into, and the former law is continued in effect
119	119	for that purpose.
120	120	SECTION 6. This Act takes effect September 1, 2015.