Texas 2017 - 85th Regular

Texas House Bill HB2816 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	85R22124 GRM-F
2	2	By: Minjarez, Larson, Gutierrez, Hernandez, H.B. No. 2816
3	3	Geren
4	4	Substitute the following for H.B. No. 2816:
5	5	By: Kuempel C.S.H.B. No. 2816
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to service contract providers.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 1304.003, Occupations Code, is amended
13	13	by amending Subsection (a) and adding Subsection (e) to read as
14	14	follows:
15	15	(a) In this chapter:
16	16	(1) "Identity recovery" means a process, through a
17	17	limited power of attorney and the assistance of an identity
18	18	recovery expert, that returns the identity of an identity theft
19	19	victim to pre-identity theft event status.
20	20	(2) "Service contract" means an agreement that is
21	21	entered into for a separately stated consideration and for a
22	22	specified term under which a provider agrees to:
23	23	(A) repair, replace, or maintain a product, or
24	24	provide indemnification for the repair, replacement, or
25	25	maintenance of a product, for operational or structural failure or
26	26	damage caused by a defect in materials or workmanship or by normal
27	27	wear; [or]
28	28	(B) provide identity recovery, if the service
29	29	contract is financed under Chapter 348 or 353, Finance Code; or
30	30	(C) provide compensation to the buyer of a
31	31	vehicle on the total constructive loss under a depreciation benefit
32	32	optional member program.
33	33	(3) "Depreciation benefit optional member program"
34	34	means a service contract financed under Chapter 348 or 353, Finance
35	35	Code, that pays to the buyer, as a credit toward the purchase of a
36	36	replacement vehicle at a participating dealer, an amount less than
37	37	or equal to the difference between the purchase price and actual
38	38	cash value for a total constructive loss.
39	39	(e) A service contract described by Subsection (a)(2)(C):
40	40	(1) may not be required as a condition of approval of a
41	41	loan for the purchase of a vehicle;
42	42	(2) may not be offered by a dealer who requires a loan
43	43	for the purchase of a vehicle to be financed exclusively with the
44	44	dealer;
45	45	(3) may be canceled by the buyer not later than the
46	46	30th day after a buyer enters into the contract, without a penalty;
47	47	(4) may be canceled by the buyer later than the 30th
48	48	day after a buyer enters into the contract, with a pro rata refund
49	49	to be provided to the buyer; and
50	50	(5) may only charge a fee that is reasonable in
51	51	relation to the benefit provided by the service contract.
52	52	SECTION 2. The changes in law made by this Act apply only to
53	53	a depreciation benefit optional member program service contract
54	54	entered into or renewed on or after the effective date of this Act.
55	55	A depreciation benefit optional member program service contract
56	56	entered into or renewed before the effective date of this Act is
57	57	governed by the law in effect immediately before the effective date
58	58	of this Act, and that law is continued in effect for that purpose.
59	59	SECTION 3. This Act takes effect September 1, 2017.