With the start of the new year, it is important to know about the laws that went into effect. Certain laws that were passed during the 85th Regular Legislative Session came into effect on January 1, 2018. Over the past three weeks, we have reviewed some new laws and I’d like to continue to review others this week. These new laws range from bills addressing telephone prepaid calling cards to motor carrier regulations. Each of the bills that took effect on January 1 went through a 140-day legislative session. During that 140-day period, these bills went before House and Senate Committees before going before the Texas House and Senate as a whole and then going to the Governor’s office.
The laws mentioned below represent some more of those pieces of legislation that passed and went into effect on January 1:
• House Bill (HB) 2126 relates to the franchise tax rate applicable to certain taxable entities that sell telephone prepaid calling cards. Currently, a retailer or wholesaler engaged in the sale of telephone prepaid calling cards may be disqualified for the lower franchise tax rate for retailers and wholesalers based on an interpretation that the sale of such cards constitutes the provision of telecommunications services. HB 2126 seeks to address this issue by clarifying that the provision of telecommunications services does not include selling telephone prepaid calling cards for purposes of franchise tax liability. HB 2126 amends the Tax Code to clarify that, for purposes of determining the franchise tax rate applicable to a taxable entity that is primarily engaged in retail or wholesale trade but does not provide retail or wholesale utilities, including telecommunications services, the provision of telecommunications services does not include selling telephone prepaid calling cards.
• HB 2279 relates to the regulation of residential service contracts. H.B. 2279 amends Chapter 1303 (Residential Service Companies), Occupations Code, to better reflect the current residential service company (RSC) industry landscape. RSCs are licensed entities, overseen by the Texas Real Estate Commission (TREC), that sell residential service contracts (i.e., home warranties), typically during the sale of a home by either the home buyer looking for additional assurances on home appliances or the home seller in an effort to increase the marketability of the home. HB 2279 updates the current statute in several ways, including amending the form filing requirement so that forms not disapproved by TREC within 30 days are approved, stating the schedule of charges filed with TREC by RSCs backed by reimbursement insurance are filed for information only while RSCs backed by reserves must be approved, making clear that information submitted in connection with an examination of a RSC by TREC is exempt from public records disclosure, confirming that an insurer may not cancel a reimbursement insurance policy without notifying TREC, and codifying existing regulations concerning captive insurance companies backing residential service company programs.
• HB 3254 relates to the regulation of a motor carrier and the enforcement of motor carrier regulations. According to interested parties, the Texas Department of Motor Vehicles (TxDMV) needs additional authority in regulating motor carriers and enforcing that regulation, including authority to deny a motor carrier registration to a carrier that changes names or operates under various aliases to continue operations without remedying previous penalties or sanctions, which are often related to safety. HB 3254 seeks to provide for this expanded authority. This bill clarifies TxDMV’s authority to deny a motor carrier registration if the applicant is owned, operated, managed, or otherwise controlled by or affiliated with a person that the Texas Department of Public Safety has determined has an unsatisfactory safety rating under applicable federal regulations or has multiple violations of commercial motor vehicle safety standards or rules of the road. HB 3254 authorizes TxDMV to deny a supplement to a motor carrier’s application for registration if the motor carrier has unpaid administrative penalties assessed under statutory provisions relating to motor carrier registration or vehicle size and weight.
It is important to learn and know about the new laws that were passed by the 85th Texas Legislature. If you would like to view any of the other legislation that was passed during the 85th Session, these websites are great resources:
• The Texas Legislature
• The Texas House of Representatives.
• The Texas Senate.
If you have questions regarding any of the information mentioned in this article, please do not hesitate to call my Capitol or District Office. As always, my offices are available at any time to assist with questions, concerns or comments (Capitol Office, 512-463-0672; District Office, 361-949-4603).
State Representative Todd Hunter, District 32
Rep. Hunter represents Nueces County (Part). He can be contacted at todd.hunter@house.texas.gov or at 512-463-0672.
