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A BILL TO BE ENTITLED
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AN ACT
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relating to identity recovery service contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 348.208, Finance Code, is amended by |
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amending Subsection (b) and adding Subsection (b-1) to read as |
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follows: |
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(b) A retail installment contract may include as a separate |
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charge an amount for: |
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(1) motor vehicle property damage or bodily injury |
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liability insurance; |
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(2) mechanical breakdown insurance; |
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(3) participation in a motor vehicle theft protection |
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plan; |
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(4) insurance to reimburse the retail buyer for the |
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amount computed by subtracting the proceeds of the buyer's basic |
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collision policy on the motor vehicle from the amount owed on the |
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vehicle if the vehicle has been rendered a total loss; |
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(5) a warranty or service contract relating to the |
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motor vehicle; |
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(6) an identity recovery service contract [defined by
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Section 1306.003, Occupations Code]; or |
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(7) a debt cancellation agreement if the agreement is |
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included as a term of a retail installment contract under Section |
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348.124. |
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(b-1) In this section, "identity recovery service contract" |
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means an agreement: |
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(1) to provide identity recovery, as defined by |
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Section 1304.003, Occupations Code; |
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(2) that is entered into for a separately stated |
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consideration and for a specified term; and |
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(3) that is financed through a retail installment |
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contract. |
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SECTION 2. Section 353.207, Finance Code, is amended by |
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amending Subsection (b) and adding Subsection (b-1) to read as |
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follows: |
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(b) A retail installment contract may include as a separate |
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charge an amount for: |
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(1) motor vehicle property damage or bodily injury |
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liability insurance; |
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(2) mechanical breakdown insurance; |
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(3) participation in a motor vehicle theft protection |
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plan; |
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(4) insurance to pay all or part of the amount computed |
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by subtracting the proceeds of the retail buyer's basic collision |
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policy on the commercial vehicle from the amount owed on the vehicle |
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in the event of a total loss or theft of the vehicle; |
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(5) a warranty or service contract relating to the |
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commercial vehicle; |
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(6) an identity recovery service contract [defined by
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Section 1306.003, Occupations Code]; or |
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(7) a debt cancellation agreement. |
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(b-1) In this section, "identity recovery service contract" |
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means an agreement: |
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(1) to provide identity recovery, as defined by |
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Section 1304.003, Occupations Code; |
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(2) that is entered into for a separately stated |
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consideration and for a specified term; and |
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(3) that is financed through a retail installment |
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contract. |
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SECTION 3. Sections 1304.003(a) and (b), Occupations Code, |
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are amended to read as follows: |
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(a) In this chapter: |
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(1) "Identity recovery" means a process, through a |
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limited power of attorney and the assistance of an identity |
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recovery expert, that returns the identity of an identity theft |
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victim to pre-identity theft event status. |
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(2) "Service [, "service] contract" means an |
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agreement: |
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(A) [(1)] that is entered into for a separately |
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stated consideration and for a specified term; and |
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(B) [(2)] under which a provider agrees to |
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repair, replace, or maintain a product, or provide indemnification |
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for the repair, replacement, or maintenance of a product, for |
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operational or structural failure or damage caused by a defect in |
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materials or workmanship or by normal wear. |
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(b) A service contract may also provide for: |
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(1) incidental payment or indemnity under limited |
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circumstances, including towing, rental, and emergency road |
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service; |
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(2) the repair or replacement of a product for damage |
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resulting from a power surge or for accidental damage incurred in |
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handling the product; or |
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(3) identity recovery, [as defined by Section
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1306.002,] if the service contract is financed under Chapter 348 or |
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353, Finance Code. |
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SECTION 4. Section 2306.003(c), Occupations Code, is |
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amended to read as follows: |
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(c) A vehicle protection product may also include identity |
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recovery, as defined by Section 1304.003 [1306.002], if the vehicle |
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protection product is financed under Chapter 348 or 353, Finance |
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Code. |
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SECTION 5. Chapter 1306, Occupations Code, is repealed. |
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SECTION 6. (a) The changes in law made by this Act apply |
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only to an identity recovery service contract entered into or |
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renewed on or after the effective date of this Act. An identity |
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recovery service contract entered into or renewed before the |
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effective date of this Act is governed by the law in effect |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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(b) The repeal of Chapter 1306, Occupations Code, by this |
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Act does not apply to a violation of that chapter that occurs before |
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the effective date of the repeal. A violation that occurs before |
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the effective date of the repeal is governed by the law as it |
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existed on the date the violation occurred, and the former law is |
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continued in effect for that purpose. For purposes of this |
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subsection, a violation occurred before the effective date of the |
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repeal if any element of the violation occurred before that date. |
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SECTION 7. This Act takes effect September 1, 2013. |