| 1 | 1 | | By: Hughes S.B. No. 1263 |
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| 2 | 2 | | (In the Senate - Filed March 3, 2017; March 13, 2017, read |
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| 3 | 3 | | first time and referred to Committee on Business & Commerce; |
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| 4 | 4 | | May 1, 2017, reported adversely, with favorable Committee |
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| 5 | 5 | | Substitute by the following vote: Yeas 9, Nays 0; May 1, 2017, sent |
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| 6 | 6 | | to printer.) |
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| 7 | 7 | | COMMITTEE SUBSTITUTE FOR S.B. No. 1263 By: Nichols |
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| 8 | 8 | | |
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| 9 | 9 | | |
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| 10 | 10 | | A BILL TO BE ENTITLED |
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| 11 | 11 | | AN ACT |
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| 12 | 12 | | relating to the regulation of a service contract. |
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| 13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 14 | | SECTION 1. Section 1304.003(b), Occupations Code, is |
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| 15 | 15 | | amended to read as follows: |
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| 16 | 16 | | (b) A service contract described by Subsection (a)(2)(A) |
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| 17 | 17 | | may also provide for: |
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| 18 | 18 | | (1) incidental payment or indemnity under limited |
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| 19 | 19 | | circumstances, including towing, rental, and emergency road |
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| 20 | 20 | | service; |
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| 21 | 21 | | (2) the repair or replacement of a product for damage |
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| 22 | 22 | | resulting from a power surge or for accidental damage incurred in |
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| 23 | 23 | | handling the product; [or] |
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| 24 | 24 | | (3) identity recovery, if the service contract is |
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| 25 | 25 | | financed under Chapter 348 or 353, Finance Code; or |
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| 26 | 26 | | (4) the replacement of a motor vehicle key or key fob |
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| 27 | 27 | | in the event the key or key fob is inoperable, lost, or stolen. |
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| 28 | 28 | | SECTION 2. Section 1304.1581, Occupations Code, is amended |
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| 29 | 29 | | by adding Subsection (g) to read as follows: |
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| 30 | 30 | | (g) Notwithstanding Subsection (b)(1) or (c)(1), a provider |
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| 31 | 31 | | is not required to deduct the amount of any claims paid under a |
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| 32 | 32 | | service contract from the amount of a refund required under this |
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| 33 | 33 | | section. |
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| 34 | 34 | | SECTION 3. Section 1304.159, Occupations Code, is amended |
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| 35 | 35 | | by adding Subsection (d) to read as follows: |
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| 36 | 36 | | (d) Notwithstanding Subsection (c), a provider is not |
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| 37 | 37 | | required to deduct the amount of any claims paid under a service |
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| 38 | 38 | | contract from the amount of a refund a service contract holder is |
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| 39 | 39 | | entitled to under this section. |
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| 40 | 40 | | SECTION 4. The changes in law made by this Act apply only to |
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| 41 | 41 | | a service contract entered into or renewed on or after the effective |
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| 42 | 42 | | date of this Act. A service contract entered into or renewed before |
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| 43 | 43 | | the effective date of this Act is governed by the law in effect |
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| 44 | 44 | | immediately before the effective date of this Act, and that law is |
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| 45 | 45 | | continued in effect for that purpose. |
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| 46 | 46 | | SECTION 5. This Act takes effect September 1, 2017. |
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| 47 | 47 | | * * * * * |
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