| 1 | | - | By: Paddie (Senate Sponsor - Hughes) H.B. No. 2275 |
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| 2 | | - | (In the Senate - Received from the House April 24, 2017; |
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| 3 | | - | May 3, 2017, read first time and referred to Committee on Business & |
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| 4 | | - | Commerce; May 17, 2017, reported favorably by the following vote: |
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| 5 | | - | Yeas 8, Nays 0; May 17, 2017, sent to printer.) |
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| 6 | | - | Click here to see the committee vote |
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| 1 | + | H.B. No. 2275 |
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| 10 | 4 | | AN ACT |
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| 11 | 5 | | relating to the regulation of a service contract. |
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| 12 | 6 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 7 | | SECTION 1. Section 1304.003(b), Occupations Code, is |
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| 14 | 8 | | amended to read as follows: |
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| 15 | 9 | | (b) A service contract described by Subsection (a)(2)(A) |
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| 16 | 10 | | may also provide for: |
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| 17 | 11 | | (1) incidental payment or indemnity under limited |
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| 18 | 12 | | circumstances, including towing, rental, and emergency road |
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| 19 | 13 | | service; |
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| 20 | 14 | | (2) the repair or replacement of a product for damage |
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| 21 | 15 | | resulting from a power surge or for accidental damage incurred in |
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| 22 | 16 | | handling the product; [or] |
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| 23 | 17 | | (3) identity recovery, if the service contract is |
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| 24 | 18 | | financed under Chapter 348 or 353, Finance Code; or |
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| 25 | 19 | | (4) the replacement of a motor vehicle key or key fob |
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| 26 | 20 | | in the event the key or key fob is inoperable, lost, or stolen. |
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| 27 | 21 | | SECTION 2. Section 1304.1581, Occupations Code, is amended |
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| 28 | 22 | | by adding Subsection (g) to read as follows: |
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| 29 | 23 | | (g) Notwithstanding Subsection (b)(1) or (c)(1), a provider |
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| 30 | 24 | | is not required to deduct the amount of any claims paid under a |
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| 31 | 25 | | service contract from the amount of a refund required under this |
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| 32 | 26 | | section. |
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| 33 | 27 | | SECTION 3. Section 1304.159, Occupations Code, is amended |
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| 34 | 28 | | by adding Subsection (d) to read as follows: |
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| 35 | 29 | | (d) Notwithstanding Subsection (c), a provider is not |
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| 36 | 30 | | required to deduct the amount of any claims paid under a service |
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| 37 | 31 | | contract from the amount of a refund a service contract holder is |
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| 38 | 32 | | entitled to under this section. |
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| 39 | 33 | | SECTION 4. The changes in law made by this Act apply only to |
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| 40 | 34 | | a service contract entered into or renewed on or after the effective |
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| 41 | 35 | | date of this Act. A service contract entered into or renewed before |
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| 42 | 36 | | the effective date of this Act is governed by the law in effect |
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| 43 | 37 | | immediately before the effective date of this Act, and that law is |
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| 44 | 38 | | continued in effect for that purpose. |
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| 45 | 39 | | SECTION 5. This Act takes effect September 1, 2017. |
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| 46 | | - | * * * * * |
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| 40 | + | ______________________________ ______________________________ |
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| 41 | + | President of the Senate Speaker of the House |
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| 42 | + | I certify that H.B. No. 2275 was passed by the House on April |
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| 43 | + | 20, 2017, by the following vote: Yeas 143, Nays 1, 2 present, not |
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| 44 | + | voting. |
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| 45 | + | ______________________________ |
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| 46 | + | Chief Clerk of the House |
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| 47 | + | I certify that H.B. No. 2275 was passed by the Senate on May |
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| 48 | + | 24, 2017, by the following vote: Yeas 31, Nays 0. |
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| 49 | + | ______________________________ |
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| 50 | + | Secretary of the Senate |
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| 51 | + | APPROVED: _____________________ |
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| 52 | + | Date |
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| 53 | + | _____________________ |
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| 54 | + | Governor |
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