Bill > SB2584

This bill modifies Texas law regarding service contracts, which are agreements that provide repair, replacement, or maintenance for products or services. The bill expands the definition of "consumer" to include anyone to whom a service contract is sold or marketed, and broadens the definition of "service contract" to include more types of coverage, such as damage from power surges and additional protections for leased motor vehicles. It also clarifies definitions for residential service contracts, maintenance agreements, and warranties, and adds new requirements for service contract providers and administrators. The bill introduces new obligations for providers, such as ensuring repairs are performed by licensed professionals, responding to service requests within 48 hours, and maintaining detailed records of claims. Additionally, the bill updates rules about who can sell residential service contracts and imposes stricter standards for communication with consumers, prohibiting false, deceptive, or misleading statements. The changes will only apply to service contracts entered into on or after the bill's effective date of September 1, 2025, with existing contracts remaining under the previous legal framework.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2584