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    Key-Fob Amendment to Texas Service Contract Law Considered by Legislature

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    The Texas Legislature is considering legislation that would expressly permit service contracts to include the replacement of a motor vehicle key or key-fob. Specifically, Senate Bill 1263 and House Bill 2275 would redefine “service contract” in Texas Occupations Code section 1304.003 to include “the replacement of a motor vehicle key or key-fob in the event that the key or key-fob becomes inoperable or is lost or stolen”. The bills also include a proposed amendment stating that a “[a] provider is not required to deduct the amount of any claims paid under a service contract from the amount of a refund due pursuant to this section.” A copy of the introduced version of the Senate bill can be found here, and the House version of the bill can be found here.

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