By Marchant                                           H.B. No. 3515
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 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 348.208, Finance Code, is amended by
 1-6     adding Subsections (c) and (d) to read as follows:
 1-7           (c)  Notwithstanding other law, a warranty or service
 1-8     contract sold by the retail seller of a motor vehicle to a retail
 1-9     buyer is not insurance.
1-10           (d)  Notwithstanding other law, a buyer and seller may agree
1-11     to include in a contract for the sale of a motor vehicle a separate
1-12     charge for a debt cancellation contract or waiver by which the
1-13     seller or holder agrees that, if the vehicle is rendered a total
1-14     loss because of theft or collision, the seller or holder will waive
1-15     the difference, if any between the actual cash value of the vehicle
1-16     immediately before the loss and the amount owed on the vehicle.  In
1-17     addition to other liability incurred under a debt cancellation
1-18     contract or waiver included in a contract as provided by this
1-19     subsection, a seller or holder may agree to waive the deductible
1-20     amount, if any, the buyer is required to pay under the buyer's
1-21     personal auto policy.  A debt cancellation contract or waiver
 2-1     included in a contract as provided by this section is not insurance
 2-2     or an insurance product or service and is not subject to regulation
 2-3     by the commissioner of insurance or the Texas Department of
 2-4     Insurance.
 2-5           SECTION 2.  The importance of this legislation and the
 2-6     crowded condition of the calendars in both houses create an
 2-7     emergency and an imperative public necessity that the
 2-8     constitutional rule requiring bills to be read on three several
 2-9     days in each house be suspended, and this rule is hereby suspended,
2-10     and that this Act take effect and be in force from and after its
2-11     passage, and it is so enacted.