Bill not drafted by TLC or Senate E&E. Line and page numbers may not match official copy. By: Cain S.B. No. 734 A BILL TO BE ENTITLED AN ACT 1-1 relating to the contractual options available to the purchaser of a 1-2 motor vehicle under a retail installment agreement. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 9, Article 7.06, Title 79, Revised 1-5 Statutes (Article 5069-7.06, Vernon's Texas Civil Statutes), is 1-6 amended to read as follows: 1-7 (9) A buyer and seller may agree to include motor 1-8 vehicle property damage or bodily injury liability insurance, 1-9 mechanical breakdown insurance, motor vehicle theft protection 1-10 plans, insurance to reimburse the buyer the difference, if any, 1-11 between the proceeds of the buyer's basic collision policy on the 1-12 vehicle and the amount owed on the vehicle, in the event that the 1-13 vehicle has been rendered a total loss, or a warranty or service 1-14 contract relating to the motor vehicle as a separate charge in a 1-15 contract for the sale of a motor vehicle. A buyer and a seller may 1-16 agree to include in a contract for the sale of a motor vehicle a 1-17 separate charge for a debt cancellation contract or waiver by which 1-18 the seller or holder agrees that, if the vehicle is rendered a 1-19 total loss because of theft or collision, the seller or holder will 1-20 waive the difference, if any, between the actual cash value of the 1-21 vehicle immediately before the loss and the amount owed on the 1-22 vehicle. In addition to other liability incurred under a debt 1-23 cancellation contract or waiver included in a contract as provided 2-1 by this section, a seller or holder may agree to waive the 2-2 deductible amount, if any, the buyer is required to pay under the 2-3 buyer's personal auto policy. A debt cancellation contract or 2-4 waiver included in a contract as provided by this section is not 2-5 insurance or an insurance product or service and is not subject to 2-6 regulation by the commissioner of insurance or the Texas Department 2-7 of Insurance. If a charge is added to a contract as provided by 2-8 this section, the contract shall clearly and conspicuously disclose 2-9 that fact. 2-10 SECTION 2. The importance of this legislation and the 2-11 crowded condition of the calendars in both houses create an 2-12 emergency and an imperative public necessity that the 2-13 constitutional rule requiring bills to be read on three several 2-14 days in each house be suspended, and this rule is hereby suspended, 2-15 and that this Act take effect and be in force from and after its 2-16 passage, and it is so enacted.