H.B. No. 2070
AN ACT
relating to the enforcement of certain warranties for a new motor
vehicle.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2301.605(a) and (c), Occupations Code,
are amended to read as follows:
(a) A rebuttable presumption that a reasonable number of
attempts have been undertaken to conform a motor vehicle to an
applicable express warranty is established if:
(1) the same nonconformity continues to exist after
being subject to repair four or more times by the manufacturer,
converter, or distributor or an authorized agent or franchised
dealer of a manufacturer, converter, or distributor and the
attempts were made before the earlier of:
(A) the date the express warranty expires [two of
the repair attempts were made in the 12 months or 12,000 miles,
whichever occurs first, following the date of original delivery to
the owner]; or [and]
(B) 24 [the other two repair attempts were made
in the 12] months or 24,000 [12,000] miles, whichever occurs first,
[immediately] following the date of original delivery of the motor
vehicle to the owner [the second repair attempt];
(2) the same nonconformity creates a serious safety
hazard and continues to exist after causing the vehicle to have been
subject to repair two or more times by the manufacturer, converter,
or distributor or an authorized agent or franchised dealer of a
manufacturer, converter, or distributor and the attempts were made
before the earlier of:
(A) the date the express warranty expires [at
least one attempt to repair the nonconformity was made in the 12
months or 12,000 miles, whichever occurs first, following the date
of original delivery to the owner]; or [and]
(B) 24 [at least one other attempt to repair the
nonconformity was made in the 12] months or 24,000 [12,000] miles,
whichever occurs first, [immediately] following the date of
original delivery of the motor vehicle to the owner [the first
repair attempt]; or
(3) a nonconformity still exists that substantially
impairs the vehicle's use or market value, [and:
[(A)] the vehicle is out of service for repair
for a cumulative total of 30 or more days, and the attempts were
made before the earlier of:
(A) the date the express warranty expires; or
(B) [in the] 24 months or 24,000 miles, whichever
occurs first, following the date of original delivery of the motor
vehicle to the owner[; and
[(B) at least two repair attempts were made in
the 12 months or 12,000 miles following the date of original
delivery to an owner].
(c) The 30 days described by Subsection (a)(3) [(a)(3)(A)]
do not include any period during which the manufacturer or
distributor lends the owner a comparable motor vehicle while the
owner's vehicle is being repaired by a franchised dealer.
SECTION 2. Section 2301.606(c), Occupations Code, as
amended by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of
the 83rd Legislature, Regular Session, 2013, is reenacted and
amended to read as follows:
(c) An order issued under this subchapter may not require
[The board or a person delegated power from the board under Section
2301.154 may not issue an order requiring] a manufacturer,
converter, or distributor to make a refund or to replace a motor
vehicle unless:
(1) the owner, [or] a person on behalf of the owner, or
the department has provided [mailed] written notice of the alleged
defect or nonconformity to the manufacturer, converter, or
distributor; and
(2) the manufacturer, converter, or distributor has
been given an opportunity to cure the alleged defect or
nonconformity.
SECTION 3. Section 2301.607(c), Occupations Code, as
amended by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of
the 83rd Legislature, Regular Session, 2013, is reenacted and
amended to read as follows:
(c) If a final order is not issued [proposal for decision
and recommendation for a final order are not issued] before the
151st day after the date a complaint is filed under this subchapter,
the department shall provide written notice by certified mail to
the complainant and to the manufacturer, converter, or distributor
of the expiration of the 150-day period and of the complainant's
right to file a civil action. The department [board or a person
delegated power from the board under Section 2301.154] shall extend
the 150-day period if a delay is requested or caused by the person
who filed the complaint.
SECTION 4. Section 2301.608, Occupations Code, as amended
by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of the 83rd
Legislature, Regular Session, 2013, is reenacted and amended to
read as follows:
Sec. 2301.608. ASSESSMENT OF COSTS FOR REPLACEMENT OR
REFUND. (a) An order issued under this subchapter must [In an
order issued under this subchapter, the board or a person delegated
power from the board under Section 2301.154 shall] name the person
responsible for paying the cost of any refund or replacement. A
manufacturer, converter, or distributor may not cause a franchised
dealer to directly or indirectly pay any money not specifically
required [ordered] by the order [board or a person delegated power
from the board under Section 2301.154].
(b) If the final order requires [board or a person delegated
power from the board under Section 2301.154 orders] a manufacturer,
converter, or distributor to make a refund or replace a motor
vehicle under this subchapter, the final order [board or person]
may require [order] the franchised dealer to reimburse the owner,
lienholder, manufacturer, converter, or distributor only for an
item or option added to the vehicle by the dealer to the extent that
the item or option contributed to the defect that served as the
basis for the order.
(c) In a case involving a leased vehicle, the final order
[board or a person delegated power from the board under Section
2301.154] may terminate the lease and apportion allowances or
refunds, including the reasonable allowance for use, between the
lessee and lessor of the vehicle.
SECTION 5. Section 2301.610(d), Occupations Code, is
amended to read as follows:
(d) The department shall maintain a toll-free telephone
number to provide information to a person who requests information
about a condition or defect that was the basis for repurchase or
replacement by an order issued under this subchapter [chapter].
The department shall maintain an effective method of providing
information to a person who makes a request.
SECTION 6. Section 2301.713, Occupations Code, as amended
by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of the 83rd
Legislature, Regular Session, 2013, is reenacted and amended to
read as follows:
Sec. 2301.713. REHEARING. (a) Except as otherwise
provided by this section [Subsection (b)], a party who seeks a
rehearing of an order shall seek the rehearing in accordance with
Chapter 2001, Government Code.
(b) The board by rule may establish procedures [a procedure]
to allow a party [parties] to a contested case [cases in which the
final order is issued by a person to whom final order authority is
delegated under Section 2301.154] to file a motion [motions] for
rehearing [with the board].
(c) A motion for rehearing in a contested case under Section
2301.204 or Subchapter M must be filed with and decided by the chief
hearings examiner.
SECTION 7. The changes in law made by this Act to Chapter
2301, Occupations Code, apply only to a new motor vehicle that is
sold or leased on or after the effective date of this Act. A new
motor vehicle that is sold or leased before the effective date of
this Act is governed by the law in effect on the date the motor
vehicle was sold or leased, and the former law is continued in
effect for that purpose.
SECTION 8. This Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2070 was passed by the House on May 4,
2017, by the following vote: Yeas 142, Nays 1, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2070 was passed by the Senate on May
23, 2017, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor