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Bill

HB 1094

Relating to the regulation of transportation protection agreements.

89th Legislature (2025) Introduced by Stan Lambert and 2 co-sponsors

Texas HB 1094 establishes consumer protection regulations for vehicle service agreements effective September 1, 2025, requiring transparent pricing and standardized provider practices.

Effective on 9/1/25
#business&commerce--general(i0050) #funerals&funeraldirectors(s9813) #occupationalregulation--othertrades&professions(i0541) #transportation--miscellaneous(i0824)
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Bill Summary · HB 1094

Legislative bill overview

HB 1094 establishes regulatory requirements for transportation protection agreements in Texas, which are service contracts that cover repair, maintenance, or replacement of vehicles. The bill sets standards for how these agreements must be structured, what disclosures must be provided to consumers, and how providers can operate in the state.

Why is this important

Transportation protection agreements are financial products that many Texans purchase when buying or leasing vehicles, yet they have historically operated with minimal oversight. This regulation creates consumer protections by requiring clear terms, pricing transparency, and standardized practices, reducing the risk of deceptive sales tactics or hidden fees.

Potential points of contention

  • Industry compliance costs: Providers may face expenses implementing new administrative and disclosure requirements, potentially increasing service agreement prices for consumers
  • Definition and scope questions: The precise scope of what qualifies as a "transportation protection agreement" under the regulation could create ambiguity or unintended coverage gaps
  • Enforcement mechanism: The bill's effectiveness depends on adequate state resources for monitoring compliance and investigating consumer complaints against providers

Compiled from official sources — confirm details with the bill’s official record.

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