H.B. No. 4830 aims to strengthen the regulation of service contracts and their providers and administrators in Texas by amending various sections of the Occupations Code. The bill revises the definitions of "consumer" and "service contract," expanding the latter to include coverage for damages from power surges and material defects. It introduces new terms such as "residential service contract provider" and clarifies the obligations of providers regarding repairs and maintenance. Additionally, the bill outlines exemptions for maintenance agreements and warranties, specifies that service contracts for non-personal purposes are excluded, and establishes requirements for written evidence of contract purchases and timely service initiation.

The bill also mandates that providers maintain detailed records of claims and specifies that individuals selling residential service contracts must be employed by a registered provider or licensed in relevant fields. It allows for compensation of non-employees under certain conditions and clarifies the use of reimbursement insurance policies from captive insurance companies. Misleading statements in communications about service contracts are prohibited, and a previous section of the code is repealed. Importantly, these changes will only apply to service contracts entered into after the bill's effective date of September 1, 2025, leaving existing contracts under the previous law.

Statutes affected:
Introduced: Occupations Code 1304.002, Occupations Code 1304.003, Occupations Code 1304.004, Occupations Code 1304.0041, Occupations Code 1304.051, Occupations Code 1304.101, Occupations Code 1304.1531, Occupations Code 1304.154, Occupations Code 1304.155, Occupations Code 1304.157, Occupations Code 1304.1025, Occupations Code 1304.1521 (Occupations Code 1304)
House Committee Report: Occupations Code 1304.002, Occupations Code 1304.003, Occupations Code 1304.004, Occupations Code 1304.0041, Occupations Code 1304.051, Occupations Code 1304.101, Occupations Code 1304.1531, Occupations Code 1304.154, Occupations Code 1304.155, Occupations Code 1304.157, Occupations Code 1304.1025, Occupations Code 1304.1521 (Occupations Code 1304)
Engrossed: Occupations Code 1304.002, Occupations Code 1304.003, Occupations Code 1304.004, Occupations Code 1304.0041, Occupations Code 1304.051, Occupations Code 1304.101, Occupations Code 1304.1531, Occupations Code 1304.154, Occupations Code 1304.155, Occupations Code 1304.157, Occupations Code 1304.1025, Occupations Code 1304.1521 (Occupations Code 1304)