Texas House Bill HB4316

Texas 2023 - 88th Regular

• Filed: 3/9/23
• Out of House Committee: 5/1/23
• Voted on by House: 5/6/23
• Out of Senate Committee: 5/17/23
• Voted on by Senate: 5/21/23
• Governor Action: 6/11/23

Caption

Relating to regulation of residential service contract providers, sellers, and administrators.

Impact

The bill's provisions have significant implications for state laws governing the residential service contract market. One major change involves the introduction of stricter confidentiality protocols for financial information and customer data. Furthermore, the bill outlines clearer guidelines for how providers calculate the required reserve amounts, which is intended to ensure financial stability and compliance among service contract providers operating within the state. These measures may foster greater public trust in service providers by ensuring they are held accountable for managing their financial resources adequately.

Summary

House Bill 4316 focuses on the regulation of residential service contract providers, sellers, and administrators in Texas. The bill modifies existing laws related to the confidential handling of certain information, including the financial status of providers and the identities of service contract holders. By implementing this bill, lawmakers aim to enhance the protection of sensitive information in the residential service contract industry, ensuring that proprietary data remains undisclosed to protect competitive interests among providers.

Sentiment

General sentiment surrounding HB 4316 appears to be cautiously optimistic among supporters, particularly those in the industry who believe that clearer regulations will enhance transparency and accountability in the marketplace. However, there are concerns regarding the potential overreach of the bill's confidentiality provisions, which some argue may hinder consumer access to important information about service providers. The balance between protecting provider data and ensuring consumer rights remains a point of discussion in the legislative discourse.

Contention

Notable points of contention regarding HB 4316 include the struggle to find an appropriate balance between confidentiality and transparency. Critics maintain that while it is essential to protect providers' proprietary information, consumers should also have adequate access to information that could influence their choices in selecting service contracts. The implications of the bill may extend beyond mere regulatory compliance, as they could shape the overall trust and relationship between consumers and service contract providers in the market.

Texas Constitutional Statutes Affected

Occupations Code

• Chapter 1304. Service Contract Providers And Administrators
  • Section: 0051
  • Section: 151
  • Section: 157
  • Section: 0051
  • Section: 151
  • Section: 157
  • Section: 0051
  • Section: 151
  • Section: 157
  • Section: 0051
  • Section: 151
  • Section: 157
  • Section: 0051
  • Section: 151
  • Section: 157

Government Code

• Chapter 552. Public Information
  • Section: New Section
  • Section: New Section