Rule Review – Adoption Justification
Chapter 71. Warrantors of Vehicle Protection Products

(effective March 1, 2011)

The Texas Department of Licensing and Regulation (Department) filed a notice of intent to review and consider for re-adoption, revision, or repeal 16 Texas Administrative Code (TAC), Chapter 71, Warrantors of Vehicle Protection Products. The Notice of Intent to Review was published in the November 12, 2010, issue of the Texas Register (35 TexReg 10062). A subsequent notice was published in the December 10, 2010, issue of the Texas Register (35 TexReg 11078), which extended the public comment period until January 13, 2011.

Texas Government Code §2001.039 require state agencies to review their rules every four years to determine if the reasons for initially adopting the rules continue to exist. The rules implementing the Warrantors of Vehicle Protection Products program under Texas Occupations Code, Chapter 2306, were scheduled for this four-year review.

The Department has reviewed these rules and has determined that the rules are still essential in implementing the statutory provisions of Texas Occupations Code, Chapter 2306, Warrantors of Vehicle Protection Products. The Department received public comments from one interested party in response to the Notice of Intent to Review. Cal-Tex Protective Coatings, Inc., a company that is registered as a Vehicle Protection Product Warrantor, stated that the statute and rules should remain in place and did not suggest any amendments to the statute or rules at this time. These comments will be taken under consideration as part of any possible rule changes in the future.

The Texas Commission of Licensing and Regulation (Commission), the Department’s governing body, readopted the rules at 16 TAC Chapter 71, Warrantors of Vehicle Protection Products, at its meeting on January 25, 2011, in their current form. As a result of this review process, the Department may propose amendments in the future that may further clarify or supplement the existing rules. Any future proposed changes to the rules will be published in the Proposed Rules section of the Texas Register and will be open for public comment prior to final adoption by the Commission in accordance with the requirements of the Administrative Procedure Act, Texas Government Code, Chapter 2001.

The rules are re-adopted by the Commission in accordance with Texas Government Code, §2001.039. This concludes the review of 16 TAC, Chapter 71, Warrantors of Vehicle Protection Products.

Issued in Austin, Texas on March 1, 2011.

William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation

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