Bill Text: TX HB2279 | 2017-2018 | 85th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the regulation of residential service contracts.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2017-06-15 - Effective on 1/1/18 [HB2279 Detail]
Download: Texas-2017-HB2279-Introduced.html
Bill Title: Relating to the regulation of residential service contracts.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2017-06-15 - Effective on 1/1/18 [HB2279 Detail]
Download: Texas-2017-HB2279-Introduced.html
By: Goldman | H.B. No. 2279 |
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relating to the regulation of a residential service contract. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 1303.004, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 1303.004. NONAPPLICABILITY TO CERTAIN PERSONS. (a) | ||
This chapter does not apply to a person who: | ||
(1) manufactures or sells a product or part of a | ||
product; and | ||
(2) sells, offers to sell, or issues a service or | ||
maintenance agreement that provides for the maintenance, repair, | ||
replacement, or performance of the product or part of the product. | ||
(b) A person described by Subsection (a) or an employee or | ||
agent of a person described by Subsection (a) is not required to be | ||
licensed or regulated under this chapter. | ||
(c) This chapter does not apply to a person who engages in | ||
the business of structural pest control in compliance with Chapter | ||
1951. | ||
(d) This chapter does not apply to a person who sells a | ||
service contract as defined by Section 1304.003, Occupations Code, | ||
but only to the extent the service contract does not provide | ||
benefits with respect to a structural component, or an electrical | ||
or plumbing system of a residential property. However, a | ||
residential service contract providing benefits only with respect | ||
to an appliance or a heating, cooling, or air-conditioning system | ||
of a residential property may be offered pursuant to this Chapter | ||
without having to also comply with Chapter 1304, Occupations Code. | ||
SECTION 2. Section 1303.103, Occupations Code, is amended | ||
to add subsection (d) as follows: | ||
(d) Any financial information submitted to the commission | ||
in connection with an application shall be considered confidential | ||
and for the exclusive use of the commission. | ||
SECTION 3. Section 1303.153, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 1303.153. SECURITY REQUIRED. (a) As a guarantee that | ||
a residential service company will meet its obligations to its | ||
contract holders, the company shall maintain with the commission a | ||
bond or other security accepted by the commission. | ||
(b) A bond posted as security must: | ||
(1) be issued by a carrier admitted in this state; | ||
(2) be continuous; | ||
(3) be cancellable by the surety only after not less | ||
than 90 days' notice to the commission; and | ||
(4) recognize that the obligation continues for the | ||
terms of the residential service contracts written by the | ||
residential service company while the bond is in force. | ||
(c) Any security provided under this section in a form other | ||
than a bond must be convertible to cash by the commission for the | ||
benefit of contract holders in this state, without resort to the | ||
courts, if the commission determines that the residential service | ||
company is in default of its financial obligations to the contract | ||
holders. Any amount remaining after all contract holders' claims | ||
are paid must be returned to the residential service company not | ||
later than the 120th day after the date the last outstanding | ||
residential service contract expires. | ||
(d) This section shall not be applicable to a residential | ||
service company that reinsures one hundred percent of its | ||
outstanding risk under residential service contracts issued and | ||
outstanding in this state in accordance with subsection (c) of | ||
Section 1303.152. | ||
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. |