Texas 2019 - 86th Regular

Texas House Bill HB4120 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 4120
	1	+	By: Lucio III (Senate Sponsor - Menéndez) H.B. No. 4120
	2	+	(In the Senate - Received from the House April 26, 2019;
	3	+	April 29, 2019, read first time and referred to Committee on
	4	+	Business & Commerce; May 20, 2019, reported adversely, with
	5	+	favorable Committee Substitute by the following vote: Yeas 7,
	6	+	Nays 0; May 20, 2019, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 4120 By: Menéndez
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the financial security requirement for providers
6	14		obligated under certain service contracts.
7	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	16		SECTION 1. Section 1304.151, Occupations Code, is amended
9	17		by amending Subsection (b) and adding Subsections (b-1), (b-2), and
10	18		(b-3) to read as follows:
11	19		(b) If the provider ensures its obligations under
12	20		Subsection (a)(2), the amount maintained in the reserve account may
13	21		not be less than an amount equal to 40 percent of the gross
14	22		consideration the provider received from consumers from the sale of
15	23		all service contracts issued and outstanding in this state, minus
16	24		any claims paid. The executive director may review and examine the
17	25		reserve account. Except as provided by Subsection (b-1), the [The]
18	26		amount of the security deposit may not be less than $250,000. The
19	27		provider must submit to the executive director on request a copy of
20	28		the provider's financial statements that must be prepared in
21	29		accordance with generally accepted accounting principles, be
22	30		without qualification as to the going concern status of the
23	31		provider, and be audited by an independent certified public
24	32		accountant. The commission by rule may require the provider to
25	33		submit additional financial reports.
26	34		(b-1) Subject to Subsection (b-2), the amount of the
27	35		security deposit required under Subsection (b) may not be less than
28	36		$25,000 if the provider:
29	37		(1) is a motor vehicle dealer licensed under Chapter
30	38		2301; and
31	39		(2) offers to sell service contracts only on motor
32	40		vehicles sold by the provider.
33	41		(b-2) The amount of the security deposit required under
34	42		Subsection (b-1) is:
35	43		(1) $25,000 for a motor vehicle dealer that generated
36	44		$1,125,000 or less in annual gross revenue in this state from the
37	45		sale of service contracts in the preceding year;
38	46		(2) $50,000 for a motor vehicle dealer that generated
39	47		more than $1,125,000 and not more than $2,500,000 in annual gross
40	48		revenue in this state from the sale of service contracts in the
41	49		preceding year; and
42	50		(3) $75,000 for a motor vehicle dealer that generated
43	51		more than $2,500,000 in annual gross revenue in this state from the
44	52		sale of service contracts in the preceding year.
45	53		(b-3) If a motor vehicle dealer described by Subsection
46	54		(b-1) has no gross revenue in this state from the sale of service
47	55		contracts in the preceding year, the security deposit shall be
48	56		$25,000.
49	57		SECTION 2. This Act takes effect September 1, 2019.
50		-	______________________________ ______________________________
51		-	President of the Senate Speaker of the House
52		-	I certify that H.B. No. 4120 was passed by the House on April
53		-	25, 2019, by the following vote: Yeas 131, Nays 5, 1 present, not
54		-	voting; and that the House concurred in Senate amendments to H.B.
55		-	No. 4120 on May 24, 2019, by the following vote: Yeas 139, Nays 3,
56		-	2 present, not voting.
57		-	______________________________
58		-	Chief Clerk of the House
59		-	I certify that H.B. No. 4120 was passed by the Senate, with
60		-	amendments, on May 22, 2019, by the following vote: Yeas 31, Nays
61		-	0.
62		-	______________________________
63		-	Secretary of the Senate
64		-	APPROVED: __________________
65		-	Date
66		-	__________________
67		-	Governor
	58	+	* * * * *