Texas 2017 - 85th Regular

Texas House Bill HB2070 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Smithee (Senate Sponsor - Watson) H.B. No. 2070
2		-	(In the Senate - Received from the House May 5, 2017;
3		-	May 5, 2017, read first time and referred to Committee on Business &
4		-	Commerce; May 21, 2017, reported favorably by the following vote:
5		-	Yeas 8, Nays 0; May 21, 2017, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 2070
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to the enforcement of certain warranties for a new motor
12	6		vehicle.
13	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	8		SECTION 1. Sections 2301.605(a) and (c), Occupations Code,
15	9		are amended to read as follows:
16	10		(a) A rebuttable presumption that a reasonable number of
17	11		attempts have been undertaken to conform a motor vehicle to an
18	12		applicable express warranty is established if:
19	13		(1) the same nonconformity continues to exist after
20	14		being subject to repair four or more times by the manufacturer,
21	15		converter, or distributor or an authorized agent or franchised
22	16		dealer of a manufacturer, converter, or distributor and the
23	17		attempts were made before the earlier of:
24	18		(A) the date the express warranty expires [two of
25	19		the repair attempts were made in the 12 months or 12,000 miles,
26	20		whichever occurs first, following the date of original delivery to
27	21		the owner]; or [and]
28	22		(B) 24 [the other two repair attempts were made
29	23		in the 12] months or 24,000 [12,000] miles, whichever occurs first,
30	24		[immediately] following the date of original delivery of the motor
31	25		vehicle to the owner [the second repair attempt];
32	26		(2) the same nonconformity creates a serious safety
33	27		hazard and continues to exist after causing the vehicle to have been
34	28		subject to repair two or more times by the manufacturer, converter,
35	29		or distributor or an authorized agent or franchised dealer of a
36	30		manufacturer, converter, or distributor and the attempts were made
37	31		before the earlier of:
38	32		(A) the date the express warranty expires [at
39	33		least one attempt to repair the nonconformity was made in the 12
40	34		months or 12,000 miles, whichever occurs first, following the date
41	35		of original delivery to the owner]; or [and]
42	36		(B) 24 [at least one other attempt to repair the
43	37		nonconformity was made in the 12] months or 24,000 [12,000] miles,
44	38		whichever occurs first, [immediately] following the date of
45	39		original delivery of the motor vehicle to the owner [the first
46	40		repair attempt]; or
47	41		(3) a nonconformity still exists that substantially
48	42		impairs the vehicle's use or market value, [and:
49	43		[(A)] the vehicle is out of service for repair
50	44		for a cumulative total of 30 or more days, and the attempts were
51	45		made before the earlier of:
52	46		(A) the date the express warranty expires; or
53	47		(B) [in the] 24 months or 24,000 miles, whichever
54	48		occurs first, following the date of original delivery of the motor
55	49		vehicle to the owner[; and
56	50		[(B) at least two repair attempts were made in
57	51		the 12 months or 12,000 miles following the date of original
58	52		delivery to an owner].
59	53		(c) The 30 days described by Subsection (a)(3) [(a)(3)(A)]
60	54		do not include any period during which the manufacturer or
61	55		distributor lends the owner a comparable motor vehicle while the
62	56		owner's vehicle is being repaired by a franchised dealer.
63	57		SECTION 2. Section 2301.606(c), Occupations Code, as
64	58		amended by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of
65	59		the 83rd Legislature, Regular Session, 2013, is reenacted and
66	60		amended to read as follows:
67	61		(c) An order issued under this subchapter may not require
68	62		[The board or a person delegated power from the board under Section
69	63		2301.154 may not issue an order requiring] a manufacturer,
70	64		converter, or distributor to make a refund or to replace a motor
71	65		vehicle unless:
72	66		(1) the owner, [or] a person on behalf of the owner, or
73	67		the department has provided [mailed] written notice of the alleged
74	68		defect or nonconformity to the manufacturer, converter, or
75	69		distributor; and
76	70		(2) the manufacturer, converter, or distributor has
77	71		been given an opportunity to cure the alleged defect or
78	72		nonconformity.
79	73		SECTION 3. Section 2301.607(c), Occupations Code, as
80	74		amended by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of
81	75		the 83rd Legislature, Regular Session, 2013, is reenacted and
82	76		amended to read as follows:
83	77		(c) If a final order is not issued [proposal for decision
84	78		and recommendation for a final order are not issued] before the
85	79		151st day after the date a complaint is filed under this subchapter,
86	80		the department shall provide written notice by certified mail to
87	81		the complainant and to the manufacturer, converter, or distributor
88	82		of the expiration of the 150-day period and of the complainant's
89	83		right to file a civil action. The department [board or a person
90	84		delegated power from the board under Section 2301.154] shall extend
91	85		the 150-day period if a delay is requested or caused by the person
92	86		who filed the complaint.
93	87		SECTION 4. Section 2301.608, Occupations Code, as amended
94	88		by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of the 83rd
95	89		Legislature, Regular Session, 2013, is reenacted and amended to
96	90		read as follows:
97	91		Sec. 2301.608. ASSESSMENT OF COSTS FOR REPLACEMENT OR
98	92		REFUND. (a) An order issued under this subchapter must [In an
99	93		order issued under this subchapter, the board or a person delegated
100	94		power from the board under Section 2301.154 shall] name the person
101	95		responsible for paying the cost of any refund or replacement. A
102	96		manufacturer, converter, or distributor may not cause a franchised
103	97		dealer to directly or indirectly pay any money not specifically
104	98		required [ordered] by the order [board or a person delegated power
105	99		from the board under Section 2301.154].
106	100		(b) If the final order requires [board or a person delegated
107	101		power from the board under Section 2301.154 orders] a manufacturer,
108	102		converter, or distributor to make a refund or replace a motor
109	103		vehicle under this subchapter, the final order [board or person]
110	104		may require [order] the franchised dealer to reimburse the owner,
111	105		lienholder, manufacturer, converter, or distributor only for an
112	106		item or option added to the vehicle by the dealer to the extent that
113	107		the item or option contributed to the defect that served as the
114	108		basis for the order.
115	109		(c) In a case involving a leased vehicle, the final order
116	110		[board or a person delegated power from the board under Section
117	111		2301.154] may terminate the lease and apportion allowances or
118	112		refunds, including the reasonable allowance for use, between the
119	113		lessee and lessor of the vehicle.
120	114		SECTION 5. Section 2301.610(d), Occupations Code, is
121	115		amended to read as follows:
122	116		(d) The department shall maintain a toll-free telephone
123	117		number to provide information to a person who requests information
124	118		about a condition or defect that was the basis for repurchase or
125	119		replacement by an order issued under this subchapter [chapter].
126	120		The department shall maintain an effective method of providing
127	121		information to a person who makes a request.
128	122		SECTION 6. Section 2301.713, Occupations Code, as amended
129	123		by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of the 83rd
130	124		Legislature, Regular Session, 2013, is reenacted and amended to
131	125		read as follows:
132	126		Sec. 2301.713. REHEARING. (a) Except as otherwise
133	127		provided by this section [Subsection (b)], a party who seeks a
134	128		rehearing of an order shall seek the rehearing in accordance with
135	129		Chapter 2001, Government Code.
136	130		(b) The board by rule may establish procedures [a procedure]
137	131		to allow a party [parties] to a contested case [cases in which the
138	132		final order is issued by a person to whom final order authority is
139	133		delegated under Section 2301.154] to file a motion [motions] for
140	134		rehearing [with the board].
141	135		(c) A motion for rehearing in a contested case under Section
142	136		2301.204 or Subchapter M must be filed with and decided by the chief
143	137		hearings examiner.
144	138		SECTION 7. The changes in law made by this Act to Chapter
145	139		2301, Occupations Code, apply only to a new motor vehicle that is
146	140		sold or leased on or after the effective date of this Act. A new
147	141		motor vehicle that is sold or leased before the effective date of
148	142		this Act is governed by the law in effect on the date the motor
149	143		vehicle was sold or leased, and the former law is continued in
150	144		effect for that purpose.
151	145		SECTION 8. This Act takes effect September 1, 2017.
152		-	* * * * *
	146	+	______________________________ ______________________________
	147	+	President of the Senate Speaker of the House
	148	+	I certify that H.B. No. 2070 was passed by the House on May 4,
	149	+	2017, by the following vote: Yeas 142, Nays 1, 2 present, not
	150	+	voting.
	151	+	______________________________
	152	+	Chief Clerk of the House
	153	+	I certify that H.B. No. 2070 was passed by the Senate on May
	154	+	23, 2017, by the following vote: Yeas 30, Nays 1.
	155	+	______________________________
	156	+	Secretary of the Senate
	157	+	APPROVED: _____________________
	158	+	Date
	159	+	_____________________
	160	+	Governor