87R21525 MWC-F
 
  By: Thompson of Brazoria H.B. No. 4277
 
  Substitute the following for H.B. No. 4277:
 
  By:  Rogers C.S.H.B. No. 4277
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to requirements related to refunds and credit provided
  under terminated debt cancellation agreements.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 354.007, Finance Code, is amended by
  amending Subsections (e), (f), and (g) and adding Subsection (e-1)
  to read as follows:
         (e)  If the debt cancellation agreement terminates due to the
  early termination of the contract, a [the] holder who is a retail
  seller who has not assigned or transferred the contract shall:
               (1)  [,] not later than the 60th day after the date the
  debt cancellation agreement terminates[:
               [(1)]  refund or credit an appropriate amount of the
  debt cancellation agreement fee; or
               (2)  cause to be refunded or credited an appropriate
  amount of the debt cancellation agreement fee by providing written
  instruction not later than the 30th day after the date the debt
  cancellation agreement terminates, including by electronic means,
  to the administrator of the agreement [appropriate person].
         (e-1)  If the debt cancellation agreement terminates due to
  the early termination of the contract, a holder, other than a holder
  described by Subsection (e), shall:
               (1)  not later than the 60th day after the date the debt
  cancellation agreement terminates refund or credit an appropriate
  amount of the debt cancellation agreement fee; or
               (2)  cause to be refunded or credited an appropriate
  amount of the debt cancellation agreement fee by providing written
  instruction not later than the 30th day after the date the debt
  cancellation agreement terminates, including by electronic means,
  to the administrator of the agreement or retail seller, as
  appropriate.
         (f)  The administrator of the agreement or retail seller,
  only after receiving the written instructions specified under
  Subsection (e)(2) or (e-1)(2), [holder] shall ensure that a refund
  or credit of an appropriate amount of a debt cancellation agreement
  fee [made by another person under Subsection (e)(2)] is made not
  later than the 60th day after the date the debt cancellation
  agreement terminates.
         (g)  The administrator of the agreement or retail seller that
  effectuated the refund [holder] shall maintain records of any
  refund or credit of an amount of a debt cancellation agreement fee
  made under Subsection (e) or (e-1) and provide electronic access to
  those records until the later of the fourth anniversary of the date
  of the contract or the second anniversary of the date of the refund
  or credit.
         SECTION 2.  The changes in law made by this Act to Section
  354.007, Finance Code, are procedural only and do not require the
  refiling of forms to implement.
         SECTION 3.  This Act takes effect September 1, 2021.