Texas SB2584 amends service contract regulations, including exemptions, provider requirements, and security deposits.

Texas SB2584 amends the regulation of service contracts and service contract providers and administrators. It exempts certain agreements from regulation, including performance guarantees and warranties. It requires providers to give contract holders a receipt and a copy of the contract. It allows providers to use reimbursement insurance policies if they maintain a funded reserve. It sets a minimum security deposit of $25,000 for residential service contract providers. The changes apply to service contracts entered into after the effective date of September 1, 2025.

Texas SB2584 amends service contract regulations, including exemptions, provider requirements, and security deposits.

Texas SB2584 amends the regulation of service contracts and service contract providers and administrators. It exempts certain agreements from regulation, including performance guarantees and warranties. It requires providers to give contract holders a receipt and a copy of the contract. It allows providers to use reimbursement insurance policies if they maintain a funded reserve. It sets a minimum security deposit of $25,000 for residential service contract providers. The changes apply to service contracts entered into after the effective date of September 1, 2025.