Texas 2025 - 89th Regular

Texas Senate Bill SB1429 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R14681 SCR-F
2	2	By: Hughes S.B. No. 1429
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to insurer restrictions and duties regarding repair of a
10	10	motor vehicle covered under an insurance policy.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 1952.301, Insurance Code, is amended to
13	13	read as follows:
14	14	Sec. 1952.301. LIMITATIONS AND DUTIES REGARDING REPAIR OF
15	15	MOTOR VEHICLE [LIMITATION ON PARTS, PRODUCTS, OR REPAIR PERSONS OR
16	16	FACILITIES PROHIBITED]. (a) In this section:
17	17	(1) "New motor vehicle" has the meaning assigned by
18	18	Section 2301.002, Occupations Code.
19	19	(2) "Non-original equipment" means a part, product, or
20	20	repair process used in the repair of a motor vehicle that is not
21	21	made by or for or used by that vehicle's manufacturer or
22	22	distributor.
23	23	(b) Under an automobile insurance policy that is delivered,
24	24	issued for delivery, or renewed in this state, for damage to a motor
25	25	vehicle that has been owned by the insured for 36 months or less and
26	26	that was a new motor vehicle when delivered to the insured, the
27	27	insurer:
28	28	(1) shall require that a part, product, or repair
29	29	process used to repair the vehicle be the original equipment
30	30	manufacturer's or distributor's part, product, or repair process,
31	31	unless the insured opts to use non-original equipment in accordance
32	32	with Subsection (f); and
33	33	(2) may not limit the beneficiary of the policy from
34	34	selecting a repair person or facility to repair damage to the
35	35	vehicle.
36	36	(c) Under [Except as provided by rules adopted by the
37	37	commissioner, under] an automobile insurance policy that is
38	38	delivered, issued for delivery, or renewed in this state, an
39	39	insurer may not directly or indirectly limit the insurer's coverage
40	40	under a policy covering damage to a motor vehicle that has been
41	41	owned by the insured for more than 36 months by:
42	42	(1) specifying the brand, type, kind, age, vendor,
43	43	supplier, or condition of parts or products or the repair process
44	44	that may be used to repair the vehicle; or
45	45	(2) limiting the beneficiary of the policy from
46	46	selecting a repair person or facility to repair damage to the
47	47	vehicle.
48	48	(d) In settling a liability claim by a third party against
49	49	an insured for property damage claimed by the third party for damage
50	50	to the third party's motor vehicle that has been owned by the third
51	51	party for 36 months or less and that was a new motor vehicle when
52	52	delivered to the third party, an insurer:
53	53	(1) shall require that a part, product, or repair
54	54	process used to repair the vehicle be the original equipment
55	55	manufacturer's or distributor's part, product, or repair process,
56	56	unless the third-party claimant opts to use non-original equipment
57	57	in accordance with Subsection (f); and
58	58	(2) may not require the third-party claimant to use a
59	59	particular repair person or facility to repair damage to the
60	60	vehicle.
61	61	(e) [(b)] In settling a liability claim by a third party
62	62	against an insured for property damage claimed by the third party to
63	63	a motor vehicle that has been owned by the insured for more than 36
64	64	months, an insurer may not require the third-party claimant to have
65	65	the motor vehicle repairs made by a particular repair person or
66	66	facility or to use a particular brand, type, kind, age, vendor,
67	67	supplier, or condition of parts or products or a particular repair
68	68	process.
69	69	(f) An insured or third-party claimant may opt to accept the
70	70	use of non-original equipment in the repair of the insured's or
71	71	claimant's motor vehicle by signing a written disclosure. The
72	72	disclosure must:
73	73	(1) be signed before repair of the vehicle begins;
74	74	(2) be delivered as an attachment to a written
75	75	estimate provided for the repair of the vehicle;
76	76	(3) be written in at least a 12-point font; and
77	77	(4) include the following language:
78	78	"I am opting to accept the use of a non-original equipment
79	79	manufacturer's or distributor's part, product, or repair process in
80	80	the repair of my vehicle, and I understand and agree that:
81	81	1. the attached repair estimate is based on the use of
82	82	a non-original equipment manufacturer's or distributor's part,
83	83	product, or repair process that is supplied by a manufacturer or
84	84	distributor that is not my motor vehicle's manufacturer or
85	85	distributor; and
86	86	2. the warranty for the non-original equipment
87	87	manufacturer's or distributor's part, product, or repair process is
88	88	provided by the manufacturer or distributor of that part, product,
89	89	or repair process and not by my motor vehicle's manufacturer or
90	90	distributor."
91	91	(g) An insurer that delivers, issues for delivery, or renews
92	92	an automobile insurance policy in this state may not require or
93	93	request that a repair person or facility use any specific
94	94	percentage of non-original equipment in the repair of a motor
95	95	vehicle.
96	96	SECTION 2. The change in law made by this Act applies only
97	97	to an insurance policy that is delivered, issued for delivery, or
98	98	renewed on or after January 1, 2026. A policy delivered, issued for
99	99	delivery, or renewed before that date is governed by the law as it
100	100	existed immediately before the effective date of this Act, and that
101	101	law is continued in effect for that purpose.
102	102	SECTION 3. This Act takes effect September 1, 2025.