85R6278 TSR-D     By: Smithee H.B. No. 2070       A BILL TO BE ENTITLED   AN ACT   relating to the enforcement of certain warranties for a new motor   vehicle.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 2301.605(a) and (c), Occupations Code,   are amended to read as follows:          (a)  A rebuttable presumption that a reasonable number of   attempts have been undertaken to conform a motor vehicle to an   applicable express warranty is established if:                (1)  the same nonconformity continues to exist after   being subject to repair four or more times by the manufacturer,   converter, or distributor or an authorized agent or franchised   dealer of a manufacturer, converter, or distributor and the   attempts were made before the earlier of:                      (A)  the date the warranty expires [two of the   repair attempts were made in the 12 months or 12,000 miles,   whichever occurs first, following the date of original delivery to   the owner]; or [and]                      (B)  24 [the other two repair attempts were made   in the 12] months or 24,000 [12,000] miles, whichever occurs first,   [immediately] following the date of original delivery of the motor   vehicle to the owner [the second repair attempt];                (2)  the same nonconformity creates a serious safety   hazard and continues to exist after causing the vehicle to have been   subject to repair two or more times by the manufacturer, converter,   or distributor or an authorized agent or franchised dealer of a   manufacturer, converter, or distributor and the attempts were made   before the earlier of:                      (A)  the date the warranty expires [at least one   attempt to repair the nonconformity was made in the 12 months or   12,000 miles, whichever occurs first, following the date of   original delivery to the owner]; or [and]                      (B)  24 [at least one other attempt to repair the   nonconformity was made in the 12] months or 24,000 [12,000] miles,   whichever occurs first, [immediately] following the date of   original delivery of the motor vehicle to the owner [the first   repair attempt]; or                (3)  a nonconformity still exists that substantially   impairs the vehicle's use or market value, [and:                      [(A)]  the vehicle is out of service for repair   for a cumulative total of 30 or more days, and the attempts were   made before the earlier of:                      (A)  the date the warranty expires; or                      (B)  [in the] 24 months or 24,000 miles, whichever   occurs first, following the date of original delivery of the motor   vehicle to the owner[; and                      [(B)     at least two repair attempts were made in   the 12 months or 12,000 miles following the date of original   delivery to an owner].          (c)  The 30 days described by Subsection (a)(3) [(a)(3)(A)]   do not include any period during which the manufacturer or   distributor lends the owner a comparable motor vehicle while the   owner's vehicle is being repaired by a franchised dealer.          SECTION 2.  Section 2301.606(c), Occupations Code, as   amended by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of   the 83rd Legislature, Regular Session, 2013, is reenacted and   amended to read as follows:          (c)  An order issued under this subchapter may not require   [The board or a person delegated power from the board under Section   2301.154 may not issue an order requiring] a manufacturer,   converter, or distributor to make a refund or to replace a motor   vehicle unless:                (1)  the owner, [or] a person on behalf of the owner, or   the department has provided [mailed] written notice of the alleged   defect or nonconformity to the manufacturer, converter, or   distributor; and                (2)  the manufacturer, converter, or distributor has   been given an opportunity to cure the alleged defect or   nonconformity.          SECTION 3.  Section 2301.607(c), Occupations Code, as   amended by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of   the 83rd Legislature, Regular Session, 2013, is reenacted and   amended to read as follows:          (c)  If a final order is not issued [proposal for decision   and recommendation for a final order are not issued] before the   151st day after the date a complaint is filed under this subchapter,   the department shall provide written notice by certified mail to   the complainant and to the manufacturer, converter, or distributor   of the expiration of the 150-day period and of the complainant's   right to file a civil action.  The department [board or a person   delegated power from the board under Section 2301.154] shall extend   the 150-day period if a delay is requested or caused by the person   who filed the complaint.          SECTION 4.  Section 2301.608, Occupations Code, as amended   by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of the 83rd   Legislature, Regular Session, 2013, is reenacted and amended to   read as follows:          Sec. 2301.608.  ASSESSMENT OF COSTS FOR REPLACEMENT OR   REFUND. (a) An order issued under this subchapter must [In an   order issued under this subchapter, the board or a person delegated   power from the board under Section 2301.154 shall] name the person   responsible for paying the cost of any refund or replacement.  A   manufacturer, converter, or distributor may not cause a franchised   dealer to directly or indirectly pay any money not specifically   required [ordered] by the order [board or a person delegated power   from the board under Section 2301.154].          (b)  If the final order requires [board or a person delegated   power from the board under Section 2301.154 orders] a manufacturer,   converter, or distributor to make a refund or replace a motor   vehicle under this subchapter, the final order [board or person]   may require [order] the franchised dealer to reimburse the owner,   lienholder, manufacturer, converter, or distributor only for an   item or option added to the vehicle by the dealer to the extent that   the item or option contributed to the defect that served as the   basis for the order.          (c)  In a case involving a leased vehicle, the final order   [board or a person delegated power from the board under Section   2301.154] may terminate the lease and apportion allowances or   refunds, including the reasonable allowance for use, between the   lessee and lessor of the vehicle.          SECTION 5.  Section 2301.610(d), Occupations Code, is   amended to read as follows:          (d)  The department shall maintain a toll-free telephone   number to provide information to a person who requests information   about a condition or defect that was the basis for repurchase or   replacement by an order issued under this subchapter [chapter].     The department shall maintain an effective method of providing   information to a person who makes a request.          SECTION 6.  Section 2301.713, Occupations Code, as amended   by Chapters 1135 (H.B. 2741) and 1379 (H.B. 1692), Acts of the 83rd   Legislature, Regular Session, 2013, is reenacted and amended to   read as follows:          Sec. 2301.713.  REHEARING. (a) Except as otherwise    provided by this section [Subsection (b)], a party who seeks a   rehearing of an order shall seek the rehearing in accordance with   Chapter 2001, Government Code.          (b)  The board by rule may establish procedures [a procedure]   to allow a party [parties] to a contested case [cases in which the   final order is issued by a person to whom final order authority is   delegated under Section 2301.154] to file a motion [motions] for   rehearing [with the board].          (c)  A motion for rehearing in a contested case under Section   2301.204 or Subchapter M must be filed with and decided by the chief   hearings examiner.          SECTION 7.  The changes in law made by this Act to Chapter   2301, Occupations Code, apply only to a new motor vehicle that is   sold or leased on or after the effective date of this Act. A new   motor vehicle that is sold or leased before the effective date of   this Act is governed by the law in effect on the date the motor   vehicle was sold or leased, and the former law is continued in   effect for that purpose.          SECTION 8.  This Act takes effect September 1, 2017.