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A BILL TO BE ENTITLED
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AN ACT
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relating to identity recovery services; imposing a fee. |
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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. Subsections (a) and (b), Section 1304.003, |
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Occupations Code, 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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[(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: |
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(A) repair, replace, or maintain a product, or |
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provide indemnification for the repair, replacement, or |
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maintenance of a product, for operational or structural failure or |
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damage caused by a defect in materials or workmanship or by normal |
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wear; or |
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(B) provide identity recovery, if the service |
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contract is financed under Chapter 348 or 353, Finance Code. |
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(b) A service contract described by Subsection (a)(2)(A) |
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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. Subchapter C, Chapter 1304, Occupations Code, is |
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amended by adding Section 1304.1035 to read as follows: |
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Sec. 1304.1035. QUARTERLY REPORT REQUIRED; FEE. Not later |
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than the 30th day after the date each calendar quarter ends, a |
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provider must report to the department the number of service |
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contracts described by Section 1304.003(a)(2)(B) that were sold or |
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issued to consumers in this state during the most recent calendar |
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quarter and must submit a fee of $1 for each contract to the |
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department. |
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SECTION 5. Section 1304.104, Occupations Code, is amended |
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to read as follows: |
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Sec. 1304.104. INFORMATION CONCERNING NUMBER OF SERVICE |
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CONTRACTS SOLD OR ISSUED. Information concerning the number of |
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service contracts sold or issued by a provider that is submitted |
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under Section 1304.103 or 1304.1035 is a trade secret to which |
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Section 552.110, Government Code, applies. |
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SECTION 6. Subsection (c), Section 2306.003, Occupations |
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Code, is 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 7. Chapter 1306, Occupations Code, is repealed. |
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SECTION 8. (a) The changes in law made by this Act apply |
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only to a contract entered into or renewed on or after the effective |
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date of this Act. A 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 9. This Act takes effect September 1, 2013. |
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