By: Hughes  S.B. No. 1263
         (In the Senate - Filed March 3, 2017; March 13, 2017, read
  first time and referred to Committee on Business & Commerce;
  May 1, 2017, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 9, Nays 0; May 1, 2017, sent
  to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1263 By:  Nichols
 
 
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.
 
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