By: Paddie (Senate Sponsor - Hughes) H.B. No. 2275
(In the Senate - Received from the House April 24, 2017;
May 3, 2017, read first time and referred to Committee on Business &
Commerce; May 17, 2017, reported favorably by the following vote:
Yeas 8, Nays 0; May 17, 2017, sent to printer.)
Click here to see the committee vote
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 repair or replacement of a product for damage
resulting from a power surge or for accidental damage incurred in
handling the product; [or]
(3) identity recovery, if the service contract is
financed under Chapter 348 or 353, Finance Code; or
(4) the replacement of a motor vehicle key or key fob
in the event the key or key fob is inoperable, lost, or stolen.
SECTION 2. Section 1304.1581, Occupations Code, is amended
by adding Subsection (g) to read as follows:
(g) Notwithstanding Subsection (b)(1) or (c)(1), a provider
is not required to deduct the amount of any claims paid under a
service contract from the amount of a refund required under this
section.
SECTION 3. Section 1304.159, Occupations Code, is amended
by adding Subsection (d) to read as follows:
(d) Notwithstanding Subsection (c), a provider is not
required to deduct the amount of any claims paid under a service
contract from the amount of a refund a service contract holder is
entitled to under this section.
SECTION 4. The changes in law made by this Act apply only to
a service contract entered into or renewed on or after the effective
date of this Act. A service contract entered into or renewed before
the effective date of this Act 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.
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