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A BILL TO BE ENTITLED
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AN ACT
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relating to the cancellation of certain consumer transactions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 601.002, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 601.002. APPLICABILITY OF CHAPTER; EXCEPTION. (a) |
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This chapter applies only to a consumer transaction in which: |
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(1) the merchant or the merchant's agent engages in a |
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personal solicitation of a sale to the consumer at a place other |
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than the merchant's place of business without the consumer's prior |
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invitation or request; |
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(2) the consumer's agreement or offer to purchase is |
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given to the merchant or the merchant's agent at a place other than |
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the merchant's place of business without the consumer's prior |
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invitation or request; and |
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(3) the agreement or offer is for: |
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(A) the purchase of goods or services for |
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consideration that exceeds $25, payable in installments or in cash; |
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or |
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(B) the purchase of real property for |
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consideration that exceeds $100, payable in installments or in |
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cash. |
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(b) Notwithstanding Subsection (a), this chapter does not |
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apply to: |
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(1) a purchase of farm equipment; |
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(2) an insurance sale regulated by the Texas |
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Department of Insurance; |
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(3) a sale of goods or services made: |
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(A) under a preexisting revolving charge account |
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or retail charge agreement; [or] |
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(B) after negotiations between the parties at a |
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business establishment in a fixed location where goods or services |
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are offered or exhibited for sale; or |
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(C) entirely by mail, Internet, or telephone and |
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without any other contact between the buyer and the seller or the |
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seller's representative before delivery of the goods or performance |
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of the services; or |
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(4) a sale of real property if: |
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(A) the purchaser is represented by a licensed |
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attorney; |
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(B) the transaction is negotiated by a licensed |
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real estate broker; or |
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(C) the transaction is negotiated at a place |
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other than the consumer's residence by the person who owns the |
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property. |
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SECTION 2. Section 601.101, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 601.101. MERCHANT'S COMPENSATION. A merchant is not |
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entitled to compensation for services performed under a consumer |
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transaction canceled under this chapter unless the merchant in good |
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faith substantially began to perform the services at the consumer's |
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request before the consumer gave notice of cancellation. |
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SECTION 3. The changes in law made by this Act apply only to |
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a consumer transaction that occurs on or after the effective date of |
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this Act. A consumer transaction that occurs before the effective |
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date of this Act is governed by the law in effect on the date the |
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transaction occurred, and the former law is continued in effect for |
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that purpose. |
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SECTION 4. This Act takes effect September 1, 2023. |