By: Carona S.B. No. 289

(In the Senate - Filed January 29, 2013; February 5, 2013, read first time and referred to Committee on Business and Commerce; February 13, 2013, reported adversely, with favorable Committee Substitute by the following vote: Yeas 9, Nays 0; February 13, 2013, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 289 By: Carona

A BILL TO BE ENTITLED

AN ACT

relating to the approval requirement for a rental-purchase agreement that includes a loss damage waiver provision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 92.153, Business & Commerce Code, is amended to read as follows:

Sec. 92.153. RESTRICTIONS ON MERCHANT CONCERNING WAIVER. A merchant may not:

(1) sell a loss damage waiver unless:

(A) [the department has approved the form of] the contract containing the waiver complies with this chapter; and

(B) the consumer agrees to the waiver in writing; or

(2) impose or require the purchase of a loss damage waiver as a mandatory charge.

SECTION 2. Subdivisions (2) and (4), Section 92.001, and Sections 92.158, 92.159, and 92.160, Business & Commerce Code, are repealed.

SECTION 3. (a) An administrative proceeding pending on the effective date of this Act that is related to a complaint filed under Section 92.160, Business & Commerce Code, as that section existed immediately before the effective date of this Act, is dismissed.

(b) An administrative penalty assessed under Chapter 92, Business & Commerce Code, as that chapter existed immediately before the effective date of this Act, and Chapter 51, Occupations Code, may be collected as provided by Chapter 51, Occupations Code.

(c) The Texas Department of Licensing and Regulation shall return a prorated portion of the fee paid by a merchant to the department under Section 92.159, Business & Commerce Code, as that section existed immediately before the effective date of this Act.

SECTION 4. This Act takes effect September 1, 2013.

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