| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the regulation of a service contract. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 1304.003(b), Occupations Code, is |
|
|
amended to read as follows: |
|
|
(b) A service contract described by Subsection (a)(2)(A) |
|
|
may also provide for: |
|
|
(1) incidental payment or indemnity under limited |
|
|
circumstances, including towing, rental, and emergency road |
|
|
service; |
|
|
(2) the repair or replacement of a product for damage |
|
|
resulting from a power surge or for accidental damage incurred in |
|
|
handling the product; [or] |
|
|
(3) identity recovery, if the service contract is |
|
|
financed under Chapter 348 or 353, Finance Code; or |
|
|
(4) the replacement of a motor vehicle key or key fob |
|
|
in the event the key or key fob is inoperable, lost, or stolen. |
|
|
SECTION 2. Section 1304.1581, Occupations Code, is amended |
|
|
by adding Subsection (g) to read as follows: |
|
|
(g) Notwithstanding Subsection (b)(1) or (c)(1), a provider |
|
|
is not required to deduct the amount of any claims paid under a |
|
|
service contract from the amount of a refund required under this |
|
|
section. |
|
|
SECTION 3. Section 1304.159, Occupations Code, is amended |
|
|
by adding Subsection (d) to read as follows: |
|
|
(d) Notwithstanding Subsection (c), a provider is not |
|
|
required to deduct the amount of any claims paid under a service |
|
|
contract from the amount of a refund a service contract holder is |
|
|
entitled to under this section. |
|
|
SECTION 4. The changes in law made by this Act apply only to |
|
|
a service contract entered into or renewed on or after the effective |
|
|
date of this Act. A service contract entered into or renewed before |
|
|
the effective date of this Act is governed by the law in effect |
|
|
immediately before the effective date of this Act, and that law is |
|
|
continued in effect for that purpose. |
|
|
SECTION 5. This Act takes effect September 1, 2017. |