Bill > HB4830

This bill updates the Texas Occupations Code provisions related to service contracts, particularly residential service contracts, by making several key modifications. The bill redefines "consumer" as an individual to whom a service contract is sold, offered, or marketed, and expands the definition of "service contract" to include more comprehensive coverage scenarios, such as lease-end vehicle damage and excess wear protections. It clarifies definitions for residential service contracts, adding specificity about what types of contracts are included or excluded, and introduces a new definition for "residential service contract provider." The bill also strengthens requirements for providers and administrators, mandating that they exercise reasonable care in service delivery, ensure repairs are performed by licensed professionals, and respond to service requests within 48 hours. Additionally, the bill enhances record-keeping requirements, introduces more stringent rules about selling and marketing service contracts, and prohibits false or misleading statements in contract communications. The legislation aims to provide more consumer protection by increasing transparency, improving service standards, and clarifying the regulatory framework for service contract providers. These changes will apply only to service contracts entered into on or after the bill's effective date of September 1, 2025.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4830