85R10107 TYPED
By: Paddie H.B. No. 2275
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of a service contract.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1304.003(b), Occupations Code, is
amended to read as follows:
(b) A service contract described by Subsection (a)(2)(A)
may also provide for:
(1) incidental payment or indemnity under limited
circumstances, including towing, rental, and emergency road
service;
(2) the replacement of a motor vehicle key or key-fob
in the event that the key or key-fob becomes inoperable or is lost
or stolen;
(3) the repair or replacement of a product for damage
resulting from a power surge or for accidental damage incurred in
handling the product; or
[(3)] (4) identity recovery, if the service contract
is financed under Chapter 348 or 353, Finance Code.
SECTION 2. Section 1304.1581, Occupations Code, is amended
by adding Subsection (d) to read as follows:
(d) (1) A provider may allow a service contract holder to
cancel a service contract on other terms included in the contract,
provided the terms do not conflict with this section.
(2) A provider is not required to deduct the amount of
any claims paid under a service contract from the amount of a refund
due pursuant to this section.
SECTION 3. Section 1304.159, Occupations Code, is amended
by adding Subsection (d) to read as follows:
(d) A provider is not required to deduct the amount of any
claims paid under a service contract from the amount of a refund due
pursuant to this section.
SECTION 4. The change in law made by this Act applies only
to a contract entered into or renewed on or after the effective date
of this Act. A contract entered into or renewed before that date is
governed by the law in effect immediately before the effective date
of this Act, and that law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2017.