SRC-JJJ C.S.H.B. 3515 76(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 3515
By: Marchant (Sibley)
Economic Development
5/12/1999
Committee Report (Substituted)


DIGEST 

Historically, a service contract sold by the retail seller of a motor
vehicle has not been considered insurance and is not subject to regulation
by the Texas Department of Insurance.  Buyers and sellers have long relied
on this interpretation of the law.  C.S.H.B. 3515 would establish
conditions regarding the nature of certain contracts included in the cash
price of motor vehicles sold at retail.  

PURPOSE

As proposed, C.S.H.B. 3515 establishes conditions regarding the nature of
certain contracts included in the cash price of motor vehicles sold at
retail.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 348.202(a), Finance Code, by adding a new
Subsection (b) and by amending current Subsection (b), to authorize a
seller to offer involuntary unemployment insurance to the buyer at the time
the contract is executed, for additional protection in the contract. Makes
a conforming change. 

SECTION 2.  Amends Section 348.208, Finance Code, by adding Subsection (c),
to provide that a warranty or service contract sold by the retail seller of
a motor vehicle to a retail buyer is not insurance, notwithstanding other
law.  

SECTION 3.  Emergency clause.
  Effective date: upon passage.