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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of a service contract. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1304.003(b), Occupations Code, is |
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amended to read as follows: |
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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 replacement of a motor vehicle key or key-fob |
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in the event that the key or key-fob becomes inoperable or is lost |
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or stolen; |
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(3) 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)] (4) identity recovery, if the service contract |
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is financed under Chapter 348 or 353, Finance Code. |
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SECTION 2. Section 1304.1581, Occupations Code, is amended |
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by adding Subsection (d) to read as follows: |
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(d) (1) A provider may allow a service contract holder to |
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cancel a service contract on other terms included in the contract, |
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provided the terms do not conflict with this section. |
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(2) A provider is not required to deduct the amount of |
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any claims paid under a service contract from the amount of a refund |
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due pursuant to this section. |
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SECTION 3. Section 1304.159, Occupations Code, is amended |
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by adding Subsection (d) to read as follows: |
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(d) A provider is not required to deduct the amount of any |
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claims paid under a service contract from the amount of a refund due |
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pursuant to this section. |
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SECTION 4. The change in law made by this Act applies only |
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to a contract entered into or renewed on or after the effective date |
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of this Act. A contract entered into or renewed before that date is |
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governed by the law in effect immediately before the effective date |
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of this Act, and that law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2017. |