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. 1-54 * * * * *