Legislation & Regulatory Activity
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12/30/23TEXAS – Residential Service Contracts (Home Warranties)
REMINDER: Residential Service Companies originally licensed by the Texas Real Estate Commission (TREC) must register with the Texas Department of Licensing and Regulation (TDLR) by January 1, 2024. Such TREC registrations will no longer be valid after this date. Background: House Bill 1560, passed in 2021, transferred responsibility for oversight of the Residential Service Companies (Home Warranties) (RSC) from the Texas Real Estate Commission (TREC) to Texas Department of Licensing and Regulation (TDLR). This transfer was effective on September 1, 2021. Since that time, Residential Service Companies licensed under TREC were permitted to continue operating under that registration read more
07/15/23NEW JERSEY – New Registrations Now RequiredAmendments to New Jersey’s Service Contract law are effective on August 1, 2023. The new law establishes a registration require for both administrators and providers (obligors). Previously, New Jersey's law required neither. The NJ Department of Consumer Affairs has posted the new registration application with instruction on its website. Check it out at the link below. https://www.njconsumeraffairs.gov/regulated/Pages/default.aspx *** For more information about this and other regulatory activity or legislation affecting these industries, visit us at www.servicecontractscompass.com read more
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03/17/23COLORADO – Home Warranty Service Contracts
Colorado House Bill 1134 has been enacted in this state and amends Colorado’s requirements for home warranty service contracts issued pursuant to Title 12, Article 10 regulated by the Division of Real Estate. Current law defines “home warranty service contract” as: “any contract or agreement whereby a person undertakes for a predetermined fee, with respect to a specified period of time, to maintain, repair, or replace any or all of the following elements of a specified new or preowned home: Structural components, such as the roof, foundation, basement, walls, ceilings, or floors; Utility systems, such as electrical, read more
03/16/23COLORADO – GAP WaiversHouse Bill 1181 has been introduced in the State of Colorado. The bill intends to codify regulations applicable to GAP waivers previously addressed in regulations of the Uniform Consumer Credit Code. According to materials filed with this legislation, codifying and updating the GAP agreement rules that are in the code of Colorado regulations, the general assembly will provide Colorado consumers with stability, predictability, and efficiency regarding GAP agreements, while ensuring a fair and viable market for GAP agreement providers and making important updates to the laws that govern these agreements. Specifically, the legislation: Sets conditions and read more
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08/07/22New Jersey – Registration for Providers & Administrators
UPDATE - Senate Bill 902 (Companion to AB 1559) has been approved and will become effective on or about September 1, 2023....yes, a little over a year from now! Senate Bill 902, provides for the following: Establishes a registration require for both administrators and providers (obligors). Previously, New Jersey's law required neither. A new prohibition on certain words that can be used in a provider’s name, products, description of products and “other materials”. Current law only limits certain words in a provider’s name and those words are “insurance”, “casualty” or “surety”. The legislation proposes to specific requirements around read more
11/21/21Texas – Residential Service Contracts – New RegulatorThe announcement below is from the Texas Department of License and Regulation (TDLR) regarding the transfer of the regulation of residential service contracts from the Texas Real Estate Commission to TDLR. *********************************** Save the Date! The Texas Department of Licensing and Regulation (TDLR) will host a virtual Residential Service Companies (Home Warranties) Informational Summit via Microsoft Teams on Tuesday, December 14, 2021. The summit is tentatively scheduled from 10:00 a.m. to 11:30 a.m. (CST) with a short break at the halfway point, followed by a Q&A where you will have an opportunity to ask questions about TDLR and the read more
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10/28/21North Carolina -Vehicle Value Protection Agreements & GAP
*UPDATE* The Governor has signed this bill - it will be effective 1/1/22. North Carolina Senate Bill 425 was presented to the Governor last week. If signed, it will amend the state’s GAP Waiver law and create a new F&I product called Vehicle Value Protection Agreement (VVPA). The current GAP law is amended to allow GAP waivers to be offered at no charge. It also amends the definition of a GAP waiver to now include an agreement that would offer a benefit that would provide the borrower with a credit towards the purchase of a replacement vehicle, in addition read more
10/17/21California – Consumer Goods Service ContractsCalifornia Assembly Bill 1221 has been signed by the Governor and will be effective January 1, 2022. This legislation addresses ambiguities within California's Song-Beverly Act which governs consumer product warranties in this state. This legislation provides two important clarifications to existing law: 1) to permit coverage to a group or "class" of products in a single service contract, and 2) to permit automatic renewals of service contracts. Current law, which refers to a service contract covering "a consumer product", has been interpreted by regulators to allow only one product to be covered under a single contract. Current law also requires read more
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10/15/21Texas – Residential Service Contracts – New Regulator
UPDATE: The Texas Department of Licensing and Regulation (TDLR) recently indicated that it hopes to publish the new license application for residential (home) service contract providers. Despite the effective date of the transfer from the Texas Real Estate Commission to the TDLR of September 1, 2021, the application is not yet available for filing. Stay tuned to the https://servicecontractscompass.com for updates. ****** Texas House Bill 1560 was enacted earlier this year which transfers the regulation of Residential Service Companies (RSCs) from the Texas Real Estate Commission (TREC) to the Texas Department of Licensing and Regulation (TDLR). H.B. 1560 requires TDLR to read more
05/23/21GEORGIA – Service Contracts and Lease W&TNew cancellation and claims deduction rules will be in effect July 1, 2021. Georgia House Bill 241 has been signed by the Governor and provides new rules relating to service contract cancellations and refunds. This new law expands benefits allowable under vehicle service contracts to include lease-end excess wear and use charges benefits as well as key/key fob replacement when inoperable, lost or stolen. The new law also codifies long-standing Department of Insurance policy by expressly carving out from regulation certain service contracts offered by subsidiaries or affiliates of a motor vehicle manufacturer. Interestingly, there remains a drafting "glitch" in the read more