Bill not drafted by TLC or Senate E&E. Line and page numbers may not match official copy. By Smithee H.B. No. 3036 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to service contracts sold by a manufacturer or seller of 1-3 the property covered by the service contract. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 2(b), Article 1.14-1, Insurance Code, is 1-6 amended by adding Subsection (9) to read as follows: 1-7 (9) Transactions in this state involving service 1-8 contracts sold by the manufacturer or seller of the property 1-9 covered by the service contract where the manufacturer or seller of 1-10 the property or a third party is the obligor of the service 1-11 contract; provided that, in the case of a third party obligor, the 1-12 third party's obligation is insured by an insurer licensed to do 1-13 business in this state and the third party obligor is acting 1-14 through or with the written agreement of the manufacturer or seller 1-15 of the property. For purposes of this subsection, "service 1-16 contract" means a contract or agreement for a separately stated 1-17 consideration for a specific duration to perform the repair, 1-18 replacement or maintenance of property or indemnification for 1-19 repair, replacement or maintenance, for the operational or 1-20 structural failure due to a defect in materials, workmanship or 1-21 normal wear and tear, with or without additional provision for 1-22 incidental payment of indemnity under limited circumstances, 1-23 including, but not limited to, towing, rental and emergency road 1-24 service, but does not include mechanical breakdown insurance 2-1 agreements sold by a person as defined in Section 2(a), Article 2-2 21.21, of this code. 2-3 SECTION 2. The importance of this legislation and the 2-4 crowded condition of the calendars in both houses create an 2-5 emergency and an imperative public necessity that the 2-6 constitutional rule requiring bills to be read on three several 2-7 days in each house be suspended, and this rule is hereby suspended, 2-8 and that this Act take effect and be in force from and after its 2-9 passage, and it is so enacted.