85R13901 GRM-F
 
  By: Campbell, Menéndez S.B. No. 1199
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to service contract providers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1304.003(a), Occupations Code, is
  amended to read as follows:
         (a)  In this chapter:
               (1)  "Identity recovery" means a process, through a
  limited power of attorney and the assistance of an identity
  recovery expert, that returns the identity of an identity theft
  victim to pre-identity theft event status.
               (2)  "Service contract" means an agreement  that is
  entered into for a separately stated consideration and for a
  specified term  under which a provider agrees to:
                     (A)  repair, replace, or maintain a product, or
  provide indemnification for the repair, replacement, or
  maintenance of a product, for operational or structural failure or
  damage caused by a defect in materials or workmanship or by normal
  wear; [or]
                     (B)  provide identity recovery, if the service
  contract is financed under Chapter 348 or 353, Finance Code; or
                     (C)  provide compensation to the buyer of a
  vehicle on the total constructive loss under a depreciation benefit
  optional member program.
               (3)  "Depreciation benefit optional member program"
  means a service contract financed under Chapter 348 or 353, Finance
  Code, that pays to the buyer, as a credit toward the purchase of a
  replacement vehicle at a participating dealer, an amount less than
  or equal to the difference between the purchase price and actual
  cash value for a total constructive loss.
         SECTION 2.  The changes in law made by this Act apply only to
  a depreciation benefit optional member program service contract
  entered into or renewed on or after the effective date of this Act.  
  A depreciation benefit optional member program 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 3.  This Act takes effect September 1, 2017.