Bill Text: TX HB2275 | 2017-2018 | 85th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the regulation of a service contract.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2017-06-09 - Effective on 9/1/17 [HB2275 Detail]
Download: Texas-2017-HB2275-Introduced.html
Bill Title: Relating to the regulation of a service contract.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2017-06-09 - Effective on 9/1/17 [HB2275 Detail]
Download: Texas-2017-HB2275-Introduced.html
85R10107 TYPED | ||
By: Paddie | H.B. No. 2275 |
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relating to the regulation of a service contract. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 1304.003(b), Occupations Code, is | ||
amended to read as follows: | ||
(b) A service contract described by Subsection (a)(2)(A) | ||
may also provide for: | ||
(1) incidental payment or indemnity under limited | ||
circumstances, including towing, rental, and emergency road | ||
service; | ||
(2) the replacement of a motor vehicle key or key-fob | ||
in the event that the key or key-fob becomes inoperable or is lost | ||
or stolen; | ||
(3) the repair or replacement of a product for damage | ||
resulting from a power surge or for accidental damage incurred in | ||
handling the product; or | ||
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is financed under Chapter 348 or 353, Finance Code. | ||
SECTION 2. Section 1304.1581, Occupations Code, is amended | ||
by adding Subsection (d) to read as follows: | ||
(d) (1) A provider may allow a service contract holder to | ||
cancel a service contract on other terms included in the contract, | ||
provided the terms do not conflict with this section. | ||
(2) A provider is not required to deduct the amount of | ||
any claims paid under a service contract from the amount of a refund | ||
due pursuant to this section. | ||
SECTION 3. Section 1304.159, Occupations Code, is amended | ||
by adding Subsection (d) to read as follows: | ||
(d) A provider is not required to deduct the amount of any | ||
claims paid under a service contract from the amount of a refund due | ||
pursuant to this section. | ||
SECTION 4. The change in law made by this Act applies only | ||
to a contract entered into or renewed on or after the effective date | ||
of this Act. A contract entered into or renewed before that date is | ||
governed by the law in effect immediately before the effective date | ||
of this Act, and that law is continued in effect for that purpose. | ||
SECTION 5. This Act takes effect September 1, 2017. |