By: Thompson H.B. No. 2985
A BILL TO BE ENTITLED
AN ACT
relating to requirements for type size of provisions of a
contractual agreement; providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 35, Business & Commerce
Code, is amended by adding Section 35.60 to read as follows:
Sec. 35.60. PROVISIONS OF A CONTRACTUAL AGREEMENT. (a)
This section applies to a person who offers to sell or provide by
contract to another person in this state:
(1) a product or service described in a contractual
agreement detailing provisions of a warranty or interest rate.
(b) On request of the consumer, a person described by
Subsection (a) must provide the consumer with a written contract
with all provisions printed in at least ten-point type. The
contract must be postmarked no later than 30 days from the contract
request.
(c) A person who violates this section is liable to the
state for a civil penalty in an amount not to exceed $2,000 for each
violation and for each day of a continuing violation. The attorney
general or the prosecuting attorney in the county in which the
violation occurs may bring suit to recover the civil penalty
imposed under this section.
(d) The attorney general may bring an action in the name of
the state to restrain or enjoin a person from violating this
section.
SECTION 2. Section 35.60, Business & Commerce Code, as
added by this Act, takes effect September 1, 2005, and applies only
to a written advertisement published or displayed on or after that
date.