Texas 2025 - 89th Regular

Texas House Bill HB4830

Filed
3/13/25  
Out of House Committee
5/5/25  
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the regulation of service contracts and service contract providers and administrators.

Impact

The proposed changes are expected to have a significant impact on state laws governing consumer protection in service contracts. By clearly defining service contracts and outlining the obligations of service providers, the bill could lead to better consumer understanding and trust in service contracts, potentially fostering a more competitive market. Moreover, the bill imposes stricter requirements on service providers regarding the handling of service contracts, recordkeeping, and communication with consumers, which could deter misleading practices in the industry.

Summary

House Bill 4830 aims to enhance the regulation of service contracts and establish clear guidelines for service contract providers and administrators in Texas. The bill revises existing sections of the Occupations Code, particularly addressing definitions and requirements related to service contracts, including residential service contracts. It seeks to provide greater clarity to consumers regarding their rights and the responsibilities of providers, thereby improving overall transparency in the marketplace for service contracts.

Sentiment

Sentiments surrounding HB 4830 appear generally supportive among consumer rights advocates who view the bill as a necessary measure to protect consumers from potential exploitation and ensure they receive the services promised in their contracts. However, there may be some skepticism or concerns from service providers regarding the added regulatory burden. Overall, the conversation about the bill indicates a consensus on the importance of safeguarding consumer interests while still allowing providers to operate effectively.

Contention

Some notable points of contention include the balance between consumer protection and the operational flexibility of service contract providers. Certain stakeholders argue that the regulations could impose undue complexity and costs on providers, potentially leading to higher prices for consumers. Additionally, the definition of what constitutes a service contract and its exemptions are areas where further clarification may be necessary to prevent confusion and ensure the legislation achieves its intended goals.

Texas Constitutional Statutes Affected

Occupations Code

  • Chapter 1304. Service Contract Providers And Administrators
    • Section: 151
    • Section: 1531
    • Section: 154
    • Section: 155
    • Section: 157
    • Section: 002
    • Section: 003
    • Section: 004
    • Section: 0041
    • Section: 051
    • Section: 101
    • Section: 151
    • Section: 1531
    • Section: 157
    • Section: 161
    • Section: 002
    • Section: 003
    • Section: 004
    • Section: 0041
    • Section: 051
    • Section: 101
    • Section: 151
    • Section: 1531
    • Section: 154
    • Section: 155
    • Section: 157
    • Section: 161
    • Section: 002
    • Section: 003
    • Section: 004
    • Section: 0041
    • Section: 051
    • Section: 101
    • Section: 151
    • Section: 1531
    • Section: 154
    • Section: 155
    • Section: 157
    • Section: 161
    • Section: New Section

Finance Code

  • Chapter 348. Motor Vehicle Installment Sales
    • Section: New Section
  • Chapter 353. Commercial Motor Vehicle Installment Sales
    • Section: New Section
  • Chapter 1. General Provisions
    • Section: New Section

Insurance Code

  • Chapter 964. Captive Insurance Companies
    • Section: New Section

Transportation Code

  • Chapter 722. Automobile Club Services
    • Section: New Section

Companion Bills

TX SB2584

Identical Relating to the regulation of service contracts and service contract providers and administrators.

Previously Filed As

TX HB2710

Relating to school district purchasing of and contracting for goods and services.

TX HB4316

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

TX HB3933

Relating to the liability of entities contracted with the Department of Family and Protective Services to provide community-based care or child welfare services.

TX SB2022

Relating to the liability of entities contracted with the Department of Family and Protective Services to provide community-based care or child welfare services.

TX HB3890

Relating to the regulation and voluntary licensing of reroofing contractors by the Texas Department of Licensing and Regulation; providing administrative and civil penalties; authorizing fees.

TX HB3926

Relating to the liability of entities contracted with the Department of Family and Protective Services to provide community-based care.

TX SB1828

Relating to the procurement by local governments of energy savings performance contracts for certain conservation measures; creating criminal offenses; authorizing a fee.

TX HB3573

Relating to modernizing the regulation of money services businesses.

TX SB1672

Relating to the regulation of elevator mechanics, elevator apprentices, and contractors; requiring an occupational registration.

TX HB4611

Relating to the nonsubstantive revision of the health and human services laws governing the Health and Human Services Commission, Medicaid, and other social services.

Similar Bills

TX SB2584

Relating to the regulation of service contracts and service contract providers and administrators.

TX HB1973

Relating to the licensing and regulation of pool-related electrical maintenance.

TX HB2279

Relating to the regulation of residential service contracts.

TX SB1982

Relating to the licensing and regulation of pool-related electrical maintenance.

CA AB253

California Residential Private Permitting Review Act: residential building permits.

TX SB16

Relating to the enhancement of air quality, including the capture and storage of carbon dioxide and development of a greenhouse gas registry, the development of emissions reduction technologies, and the improvement of energy efficiency in buildings, vehicles, and appliances.

LA HB1053

Provides relative to the Life Safety and Property Protection Licensing Act

NC H661

Building Industry Efficiency Act of 2025