Texas 2021 - 87th Regular

Texas House Bill HB735 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 735
	1	+	By: Minjarez (Senate Sponsor - Campbell) H.B. No. 735
	2	+	(In the Senate - Received from the House April 12, 2021;
	3	+	April 13, 2021, read first time and referred to Committee on
	4	+	Business & Commerce; April 23, 2021, reported favorably by the
	5	+	following vote: Yeas 8, Nays 0; April 23, 2021, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to service contracts for leased or purchased motor
6	12		vehicles.
7	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	14		SECTION 1. Sections 1304.003(a)(2) and (3), Occupations
9	15		Code, are amended to read as follows:
10	16		(2) "Service contract" means an agreement that is
11	17		entered into for a separately stated consideration and for a
12	18		specified term under which a provider agrees to:
13	19		(A) repair, replace, or maintain a product, or
14	20		provide indemnification for the repair, replacement, or
15	21		maintenance of a product, for operational or structural failure or
16	22		damage caused by a defect in materials or workmanship or by normal
17	23		wear;
18	24		(B) provide identity recovery, if the service
19	25		contract is financed under Chapter 348 or 353, Finance Code; or
20	26		(C) provide compensation to the lessee or buyer
21	27		of a vehicle on the total constructive loss under a depreciation
22	28		benefit optional member program.
23	29		(3) "Depreciation benefit optional member program"
24	30		means a service contract for a vehicle, regardless of whether the
25	31		vehicle is purchased for cash, financed, or leased [financed under
26	32		Chapter 348 or 353, Finance Code], that pays to the lessee or buyer
27	33		a specified amount, as a credit that may be used toward the lease or
28	34		purchase of a replacement vehicle at a participating dealer after
29	35		[, an amount less than or equal to the difference between the
30	36		purchase price and actual cash value for] a total constructive loss
31	37		of the vehicle.
32	38		SECTION 2. Section 1304.003(e), Occupations Code, is
33	39		amended to read as follows:
34	40		(e) A service contract described by Subsection (a)(2)(C):
35	41		(1) may not be required as a condition of approval of a
36	42		lease of a vehicle or a loan for the purchase of a vehicle;
37	43		(2) may not be offered by a dealer who requires a loan
38	44		for the purchase of a vehicle to be financed exclusively with the
39	45		dealer;
40	46		(3) may be canceled by the buyer of the service
41	47		contract not later than the 30th day after the [a] buyer enters into
42	48		the contract, without a penalty;
43	49		(4) may be canceled by the buyer of the service
44	50		contract later than the 30th day after the [a] buyer enters into the
45	51		contract, with a pro rata refund to be provided to the buyer; and
46	52		(5) may only charge a fee that is reasonable in
47	53		relation to the benefit provided by the service contract.
48	54		SECTION 3. The changes in law made by this Act apply only to
49	55		a service contract entered into or renewed on or after the effective
50	56		date of this Act. A service contract entered into or renewed before
51	57		the effective date of this Act is governed by the law in effect
52	58		immediately before the effective date of this Act, and that law is
53	59		continued in effect for that purpose.
54	60		SECTION 4. This Act takes effect September 1, 2021.
55		-	______________________________ ______________________________
56		-	President of the Senate Speaker of the House
57		-	I certify that H.B. No. 735 was passed by the House on April
58		-	9, 2021, by the following vote: Yeas 143, Nays 1, 2 present, not
59		-	voting.
60		-	______________________________
61		-	Chief Clerk of the House
62		-	I certify that H.B. No. 735 was passed by the Senate on April
63		-	29, 2021, by the following vote: Yeas 31, Nays 0.
64		-	______________________________
65		-	Secretary of the Senate
66		-	APPROVED: _____________________
67		-	Date
68		-	_____________________
69		-	Governor
	61	+	* * * * *