1-1  By:  Marchant (Senate Sponsor - Cain)                 H.B. No. 1586
    1-2        (In the Senate - Received from the House May 1, 1995;
    1-3  May 2, 1995, read first time and referred to Committee on Economic
    1-4  Development; May 16, 1995, reported favorably, as amended, by the
    1-5  following vote:  Yeas 8, Nays 0; May 16, 1995, sent to printer.)
    1-6  COMMITTEE AMENDMENT NO. 1                                By:  Lucio
    1-7        Amend H.B. 1586, House Engrossment, by deleting all language
    1-8  beginning with and including the underlined word "A" on page 2,
    1-9  line 9 of the House Engrossment, and ending with and including the
   1-10  underlined period following the underlined word "reasonable" on
   1-11  page 2, line 10.
   1-12                         A BILL TO BE ENTITLED
   1-13                                AN ACT
   1-14  relating to certain agreements under a retail installment contract
   1-15  for the purchase of a motor vehicle.
   1-16        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-17        SECTION 1.  Section (9), Article 7.06, Title 79, Revised
   1-18  Statutes (Article 5069-7.06, Vernon's Texas Civil Statutes), is
   1-19  amended to read as follows:
   1-20        (9)  A buyer and seller may agree to include motor vehicle
   1-21  property damage or bodily injury liability insurance, mechanical
   1-22  breakdown insurance, motor vehicle theft protection plans,
   1-23  insurance to reimburse the buyer the difference, if any, between
   1-24  the proceeds of the buyer's basic collision policy on the vehicle
   1-25  and the amount owed on the vehicle, in the event that the vehicle
   1-26  has been rendered a total loss, or a warranty or service contract
   1-27  relating to the motor vehicle as a separate charge in a contract
   1-28  for the sale of a motor vehicle.  A buyer and seller may agree to
   1-29  include in a contract for the sale of a motor vehicle a separate
   1-30  charge for a debt cancellation contract or waiver by which the
   1-31  seller or holder agrees that, if the vehicle is rendered a total
   1-32  loss because of theft or collision, the seller or holder will waive
   1-33  the difference, if any, between the actual cash value of the
   1-34  vehicle immediately before the loss and the amount owed on the
   1-35  vehicle.  In addition to other liability incurred under a debt
   1-36  cancellation contract or waiver included in a contract as provided
   1-37  by this section, a seller or holder may agree to waive the
   1-38  deductible amount, if any, the buyer is required to pay under the
   1-39  buyer's personal auto policy.  A debt cancellation contract or
   1-40  waiver included in a contract as provided by this section is not
   1-41  insurance or an insurance product or service and is not subject to
   1-42  regulation by the commissioner of insurance or the Texas Department
   1-43  of Insurance.  If a charge is added to a contract as provided by
   1-44  this section, the contract shall clearly and conspicuously disclose
   1-45  that fact.  A charge added to a contract as provided by this
   1-46  section shall be reasonable.
   1-47        SECTION 2.  The importance of this legislation and the
   1-48  crowded condition of the calendars in both houses create an
   1-49  emergency and an imperative public necessity that the
   1-50  constitutional rule requiring bills to be read on three several
   1-51  days in each house be suspended, and this rule is hereby suspended,
   1-52  and that this Act take effect and be in force from and after its
   1-53  passage, and it is so enacted.
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