Bill Text: TX HB4316 | 2023-2024 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to regulation of residential service contract providers, sellers, and administrators.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-06-11 - Effective on 9/1/23 [HB4316 Detail]
Download: Texas-2023-HB4316-Introduced.html
Bill Title: Relating to regulation of residential service contract providers, sellers, and administrators.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-06-11 - Effective on 9/1/23 [HB4316 Detail]
Download: Texas-2023-HB4316-Introduced.html
88R14391 SRA-F | ||
By: Goldman | H.B. No. 4316 |
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relating to regulation of residential service contract providers, | ||
sellers, and administrators. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 1304, Occupations Code, is | ||
amended by adding Section 1304.0051 to read as follows: | ||
Sec. 1304.0051. CONFIDENTIALITY OF CERTAIN INFORMATION. | ||
(a) The following information submitted to or maintained by the | ||
department under this chapter that pertains to a license applicant | ||
or a seller, provider, or administrator is confidential and not | ||
subject to disclosure under Chapter 552, Government Code: | ||
(1) the financial condition of the applicant, seller, | ||
provider, or administrator; or | ||
(2) the identity or number of service contract | ||
holders. | ||
(b) The department may withhold the information described | ||
by Subsection (a) without requesting a decision from the attorney | ||
general under Subchapter G, Chapter 552, Government Code. | ||
SECTION 2. Section 1304.151(b), Occupations Code, is | ||
amended to read as follows: | ||
(b) If the provider ensures its obligations under | ||
Subsection (a)(2), the amount maintained in the reserve account may | ||
not be less than an amount equal to 40 percent of the difference | ||
between the gross consideration the provider received from | ||
consumers from the sale of all service contracts issued and | ||
outstanding in this state, and [ |
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preceding twelve-month period. The executive director may review | ||
and examine the reserve account. Except as provided by Subsections | ||
(b-1) and (b-4), the amount of the security deposit may not be less | ||
than $250,000. The provider must submit to the executive director | ||
on request a copy of the provider's financial statements that must | ||
be prepared in accordance with generally accepted accounting | ||
principles, be without qualification as to the going concern status | ||
of the provider, and be audited by an independent certified public | ||
accountant. The commission by rule may require the provider to | ||
submit additional financial reports. | ||
SECTION 3. Section 1304.157(c), Occupations Code, is | ||
amended to read as follows: | ||
(c) Notwithstanding Section 1304.151(a)(1), a provider of a | ||
residential service contract may use a reimbursement insurance | ||
policy issued by a captive insurance company as defined by Section | ||
964.001, Insurance Code, to insure the provider's residential | ||
service contracts if the provider maintains a funded reserve equal | ||
to not less than 25 percent of the difference between the gross | ||
consideration the provider received from consumers from the sale of | ||
all the provider's service contracts issued and outstanding in this | ||
state, and [ |
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twelve-month period. A reimbursement insurance policy issued to a | ||
residential service contract provider in accordance with this | ||
subsection: | ||
(1) is not subject to Section 1304.152; and | ||
(2) is considered to satisfy the requirements of | ||
Sections 1304.1025 and 1304.151(a)(1) for purposes of this chapter. | ||
SECTION 4. Notwithstanding Section 4.13(b), Chapter 663 | ||
(H.B. 1560), Acts of the 87th Legislature, Regular Session, 2021, a | ||
license issued by the Texas Real Estate Commission under former | ||
Chapter 1303, Occupations Code, before September 1, 2021, is | ||
continued in effect until January 1, 2024, as a provider or | ||
administrator registration issued by the Texas Department of | ||
Licensing and Regulation under Chapter 1304, Occupations Code. | ||
SECTION 5. Any information designated as confidential for | ||
competitive purposes under former Chapter 1303, Occupations Code, | ||
by an applicant, seller, provider, or administrator before the | ||
effective date of this Act is confidential and not subject to | ||
disclosure under Chapter 552, Government Code. The Texas | ||
Department of Licensing and Regulation may withhold the information | ||
without requesting a decision from the attorney general under | ||
Subchapter G, Chapter 552, Government Code. | ||
SECTION 6. This Act takes effect September 1, 2023. |