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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of certain service contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1304.003, Occupations Code, is amended |
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by amending Subsection (a) and adding Subsection (c) to read as |
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follows: |
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(a) In this chapter, "service contract" means an agreement: |
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(1) that is entered into for a separately stated |
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consideration and for a specified term; and |
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(2) under which a provider agrees to repair, replace, |
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or maintain a product, or provide indemnification for the repair, |
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replacement, or maintenance of a product, for operational or |
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structural failure or damage caused by a defect in materials or |
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workmanship or by normal wear. |
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(c) For purposes of Subsection (a), normal wear for a motor |
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vehicle includes minor and reasonable wear and tear that a vehicle |
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sustains in everyday ordinary operation including: |
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(1) small dents, dings, and creases repairable by the |
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process of paintless dent removal without affecting the existing |
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paint finish and without replacing vehicle body panels or sanding, |
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bonding, or painting; |
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(2) small windshield chips and cracks repairable |
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without replacement of the entire windshield; |
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(3) worn tire tread; |
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(4) worn interior fabric or carpet items; and |
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(5) tire and wheel damage resulting from ordinary road |
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hazards such as potholes, rocks, wood debris, metal parts, glass, |
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plastic, or composite scraps. |
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SECTION 2. The change in law made by this Act applies to a |
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service contract entered into on or after the effective date of this |
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Act. A service contract entered into before the effective date of |
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this Act is covered by the law in effect on the date the contract was |
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entered into, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |