BILL ANALYSIS |
C.S.H.B. 2696 |
By: Johnson |
Business & Industry |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Interested parties have raised concerns regarding residential service companies denying service to a customer as a result of a home inspection report without notifying the customer before entering into the residential service contract that the home inspection was required. C.S.H.B. 2696 seeks to remedy this issue by clarifying the law governing residential service contracts.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.H.B. 2696 amends the Occupations Code to prohibit a residential service company from requiring a homeowner, lessor, or renter to provide a home inspection report to the company after a residential service contract is entered into by the homeowner, lessor, or renter. The bill prohibits such a company from collecting any payment from the homeowner, lessor, or renter if the company requires a home inspection report before a residential service contract is entered into and declines the contract. The bill prohibits a residential service company that requires a home inspection report from denying a claim on any structural component, appliance, or system that is addressed in the home inspection report and included in the residential service contract unless the company gives the homeowner, lessor, or renter express notice of exclusion of the component, appliance, or system before the contract is entered into by the homeowner, lessor, or renter.
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EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2013.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 2696 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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