88R7222 SHH-F
By: Lambert H.B. No. 3102
A BILL TO BE ENTITLED
AN ACT
relating to the cancellation of certain consumer transactions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 601.002, Business & Commerce Code, is
amended to read as follows:
Sec. 601.002. APPLICABILITY OF CHAPTER; EXCEPTION. (a)
This chapter applies only to a consumer transaction in which:
(1) the merchant or the merchant's agent engages in a
personal solicitation of a sale to the consumer at a place other
than the merchant's place of business without the consumer's prior
invitation or request;
(2) the consumer's agreement or offer to purchase is
given to the merchant or the merchant's agent at a place other than
the merchant's place of business without the consumer's prior
invitation or request; and
(3) the agreement or offer is for:
(A) the purchase of goods or services for
consideration that exceeds $25, payable in installments or in cash;
or
(B) the purchase of real property for
consideration that exceeds $100, payable in installments or in
cash.
(b) Notwithstanding Subsection (a), this chapter does not
apply to:
(1) a purchase of farm equipment;
(2) an insurance sale regulated by the Texas
Department of Insurance;
(3) a sale of goods or services made:
(A) under a preexisting revolving charge account
or retail charge agreement; [or]
(B) after negotiations between the parties at a
business establishment in a fixed location where goods or services
are offered or exhibited for sale; or
(C) entirely by mail, Internet, or telephone and
without any other contact between the buyer and the seller or the
seller's representative before delivery of the goods or performance
of the services; or
(4) a sale of real property if:
(A) the purchaser is represented by a licensed
attorney;
(B) the transaction is negotiated by a licensed
real estate broker; or
(C) the transaction is negotiated at a place
other than the consumer's residence by the person who owns the
property.
SECTION 2. Section 601.101, Business & Commerce Code, is
amended to read as follows:
Sec. 601.101. MERCHANT'S COMPENSATION. A merchant is not
entitled to compensation for services performed under a consumer
transaction canceled under this chapter unless the merchant in good
faith substantially began to perform the services at the consumer's
request before the consumer gave notice of cancellation.
SECTION 3. The changes in law made by this Act apply only to
a consumer transaction that occurs on or after the effective date of
this Act. A consumer transaction that occurs before the effective
date of this Act is governed by the law in effect on the date the
transaction occurred, and the former law is continued in effect for
that purpose.
SECTION 4. This Act takes effect September 1, 2023.