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.