H.B. No. 2070
 
 
 
 
AN ACT
  relating to the enforcement of certain warranties for a new motor
  vehicle.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 2301.605(a) and (c), Occupations Code,
  are amended to read as follows:
         (a)  A rebuttable presumption that a reasonable number of
  attempts have been undertaken to conform a motor vehicle to an
  applicable express warranty is established if:
               (1)  the same nonconformity continues to exist after
  being subject to repair four or more times by the manufacturer,
  converter, or distributor or an authorized agent or franchised
  dealer of a manufacturer, converter, or distributor and the
  attempts were made before the earlier of:
                     (A)  the date the express warranty expires [two of
  the repair attempts were made in the 12 months or 12,000 miles,
  whichever occurs first, following the date of original delivery to
  the owner]; or [and]
                     (B)  24 [the other two repair attempts were made
  in the 12] months or 24,000 [12,000] miles, whichever occurs first,
  [immediately] following the date of original delivery of the motor
  vehicle to the owner [the second repair attempt];
               (2)  the same nonconformity creates a serious safety
  hazard and continues to exist after causing the vehicle to have been
  subject to repair two or more times by the manufacturer, converter,
  or distributor or an authorized agent or franchised dealer of a
  manufacturer, converter, or distributor and the attempts were made
  before the earlier of:
                     (A)  the date the express warranty expires [at
  least one attempt to repair the nonconformity was made in the 12
  months or 12,000 miles, whichever occurs first, following the date
  of original delivery to the owner]; or [and]
                     (B)  24 [at least one other attempt to repair the
  nonconformity was made in the 12] months or 24,000 [12,000] miles,
  whichever occurs first, [immediately] following the date of
  original delivery of the motor vehicle to the owner [the first
  repair attempt]; or
               (3)  a nonconformity still exists that substantially
  impairs the vehicle's use or market value, [and:
                     [(A)]  the vehicle is out of service for repair
  for a cumulative total of 30 or more days, and the attempts were
  made before the earlier of:
                     (A)  the date the express warranty expires; or
                     (B)  [in the] 24 months or 24,000 miles, whichever
  occurs first, following the date of original delivery of the motor
  vehicle to the owner[; and
                     [(B)     at least two repair attempts were made in
  the 12 months or 12,000 miles following the date of original
  delivery to an owner].
         (c)  The 30 days described by Subsection (a)(3) [(a)(3)(A)]
  do not include any period during which the manufacturer or
  distributor lends the owner a comparable motor vehicle while the
  owner's vehicle is being repaired by a franchised dealer.
         SECTION 2.  Section 2301.606(c), Occupations Code, as
  amended by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of
  the 83rd Legislature, Regular Session, 2013, is reenacted and
  amended to read as follows:
         (c)  An order issued under this subchapter may not require
  [The board or a person delegated power from the board under Section
  2301.154 may not issue an order requiring] a manufacturer,
  converter, or distributor to make a refund or to replace a motor
  vehicle unless:
               (1)  the owner, [or] a person on behalf of the owner, or
  the department has provided [mailed] written notice of the alleged
  defect or nonconformity to the manufacturer, converter, or
  distributor; and
               (2)  the manufacturer, converter, or distributor has
  been given an opportunity to cure the alleged defect or
  nonconformity.
         SECTION 3.  Section 2301.607(c), Occupations Code, as
  amended by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of
  the 83rd Legislature, Regular Session, 2013, is reenacted and
  amended to read as follows:
         (c)  If a final order is not issued [proposal for decision
  and recommendation for a final order are not issued] before the
  151st day after the date a complaint is filed under this subchapter,
  the department shall provide written notice by certified mail to
  the complainant and to the manufacturer, converter, or distributor
  of the expiration of the 150-day period and of the complainant's
  right to file a civil action.  The department [board or a person
  delegated power from the board under Section 2301.154] shall extend
  the 150-day period if a delay is requested or caused by the person
  who filed the complaint.
         SECTION 4.  Section 2301.608, Occupations Code, as amended
  by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of the 83rd
  Legislature, Regular Session, 2013, is reenacted and amended to
  read as follows:
         Sec. 2301.608.  ASSESSMENT OF COSTS FOR REPLACEMENT OR
  REFUND. (a) An order issued under this subchapter must [In an
  order issued under this subchapter, the board or a person delegated
  power from the board under Section 2301.154 shall] name the person
  responsible for paying the cost of any refund or replacement.  A
  manufacturer, converter, or distributor may not cause a franchised
  dealer to directly or indirectly pay any money not specifically
  required [ordered] by the order [board or a person delegated power
  from the board under Section 2301.154].
         (b)  If the final order requires [board or a person delegated
  power from the board under Section 2301.154 orders] a manufacturer,
  converter, or distributor to make a refund or replace a motor
  vehicle under this subchapter, the final order [board or person]
  may require [order] the franchised dealer to reimburse the owner,
  lienholder, manufacturer, converter, or distributor only for an
  item or option added to the vehicle by the dealer to the extent that
  the item or option contributed to the defect that served as the
  basis for the order.
         (c)  In a case involving a leased vehicle, the final order
  [board or a person delegated power from the board under Section
  2301.154] may terminate the lease and apportion allowances or
  refunds, including the reasonable allowance for use, between the
  lessee and lessor of the vehicle.
         SECTION 5.  Section 2301.610(d), Occupations Code, is
  amended to read as follows:
         (d)  The department shall maintain a toll-free telephone
  number to provide information to a person who requests information
  about a condition or defect that was the basis for repurchase or
  replacement by an order issued under this subchapter [chapter].  
  The department shall maintain an effective method of providing
  information to a person who makes a request.
         SECTION 6.  Section 2301.713, Occupations Code, as amended
  by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of the 83rd
  Legislature, Regular Session, 2013, is reenacted and amended to
  read as follows:
         Sec. 2301.713.  REHEARING. (a) Except as otherwise 
  provided by this section [Subsection (b)], a party who seeks a
  rehearing of an order shall seek the rehearing in accordance with
  Chapter 2001, Government Code.
         (b)  The board by rule may establish procedures [a procedure]
  to allow a party [parties] to a contested case [cases in which the
  final order is issued by a person to whom final order authority is
  delegated under Section 2301.154] to file a motion [motions] for
  rehearing [with the board].
         (c)  A motion for rehearing in a contested case under Section
  2301.204 or Subchapter M must be filed with and decided by the chief
  hearings examiner.
         SECTION 7.  The changes in law made by this Act to Chapter
  2301, Occupations Code, apply only to a new motor vehicle that is
  sold or leased on or after the effective date of this Act. A new
  motor vehicle that is sold or leased before the effective date of
  this Act is governed by the law in effect on the date the motor
  vehicle was sold or leased, and the former law is continued in
  effect for that purpose.
         SECTION 8.  This Act takes effect September 1, 2017.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2070 was passed by the House on May 4,
  2017, by the following vote:  Yeas 142, Nays 1, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2070 was passed by the Senate on May
  23, 2017, by the following vote:  Yeas 30, Nays 1.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor