TO:	Honorable Chris Turner, Chair, House Committee on Business & Industry
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB2259 by Guerra (Relating to requirements for subscription service contracts.), As Introduced

The bill would amend the Business and Commerce Code by adding Chapter 608, which concerns requirements for subscription service contracts. The bill would require subscription service providers to disclose to consumers the nature of the subscription service contracts that they are agreeing to, while also establishing procedures for contract cancellation.

The bill indicates that a violation of the chapter is a false, misleading or deceptive act or practice as defined by the Business and Commerce Code and subsequently, any remedy under Chapter 17, Subchapter E, is available for a violation of this chapter. The bill would provide the Consumer Protection Division the authority to seek additional remedy through the Deceptive Trade Practices Act.

According to the Office of the Attorney General, any additional work resulting from the provisions of the bill could be absorbed within current resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.