1-1                                   AN ACT
 1-2     relating to the nature of certain contracts included in the cash
 1-3     price of motor vehicles sold at retail.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 348.202, Finance Code, is amended by
 1-6     adding a new Subsection (b) and by amending current Subsection (b)
 1-7     to read as follows:
 1-8           (b)  As additional protection for the contract, a seller may
 1-9     offer involuntary unemployment insurance to the buyer at the time
1-10     the contract is executed.
1-11           (c) [(b)]  A holder may include the cost of insurance
1-12     provided under Subsection (a) or (b) as a separate charge in the
1-13     contract.
1-14           SECTION 2.  Section 348.208, Finance Code, is amended by
1-15     adding Subsection (c) to read as follows:
1-16           (c)  Notwithstanding other law, a warranty or service
1-17     contract sold by the retail seller of a motor vehicle to a retail
1-18     buyer is not insurance.
1-19           SECTION 3.  The importance of this legislation and the
1-20     crowded condition of the calendars in both houses create an
1-21     emergency and an imperative public necessity that the
1-22     constitutional rule requiring bills to be read on three several
1-23     days in each house be suspended, and this rule is hereby suspended,
1-24     and that this Act take effect and be in force from and after its
 2-1     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3515 was passed by the House on April
         27, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 3515 on May 22, 1999, by the
         following vote:  Yeas 143, Nays 0, 1 present, not voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3515 was passed by the Senate, with
         amendments, on May 20, 1999, by the following vote:  Yeas 29, Nays
         1.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor