1-1 By: Marchant (Senate Sponsor - Carona) H.B. No. 2139
1-2 (In the Senate - Received from the House April 25, 2001;
1-3 April 26, 2001, read first time and referred to Committee on
1-4 Business and Commerce; May 10, 2001, reported favorably, as
1-5 amended, by the following vote: Yeas 7, Nays 0; May 10, 2001, sent
1-6 to printer.)
1-7 COMMITTEE AMENDMENT NO. 1
1-8 Amend H.B. 2139, House Engrossment, as follows:
1-9 (1) On page 1, following line 54, insert the following
1-10 new paragraphs:
1-11 "(f) Any debt canceled pursuant to an agreement
1-12 authorized by Finance Code Section 348.208(e) by a retail seller
1-13 that is a dealer licensed under Chapter 503, Transportation Code,
1-14 or any affiliate of such retail seller, who extends credit under a
1-15 retail installment contract to a purchaser of a used motor vehicle
1-16 sold by the motor vehicle dealer, or an affiliate of such dealer
1-17 with a direct or indirect interest in the retail installment
1-18 contract, is entitled to credit or reimbursement for the motor
1-19 vehicle sales tax paid. The dealer shall also be entitled to a
1-20 credit or reimbursement for motor vehicle sales tax paid on the
1-21 portion of the debt that has been determined to be worthless and
1-22 actually charged off for federal income tax purposes; or the
1-23 remaining unpaid balance of the sales price of the motor vehicle
1-24 after the motor vehicle is repossessed under a retail installment
1-25 contract or debt cancellation agreement.
1-26 (g) For purposes of subsection (f), affiliate means
1-27 any entity or entities that would be classified as a member of a
1-28 group under 26 U.S.C. Section 1504 or 1563."
1-29 A BILL TO BE ENTITLED
1-30 AN ACT
1-31 relating to certain agreements under a retail installment contract
1-32 for the purchase of a motor vehicle.
1-33 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-34 SECTION 1. Section 348.208, Finance Code, is amended by
1-35 redesignating Subsection (c) as added by Chapter 1559, Acts of the
1-36 76th Legislature, Regular Session, 1999, as Subsection (d) and by
1-37 adding Subsection (e) to read as follows:
1-38 (d) [(c)] Notwithstanding any other law, service contracts
1-39 sold by a retail seller of a motor vehicle to a retail buyer are
1-40 not subject to 1.14-1, Insurance Code.
1-41 (e) A retail installment contract may include as a separate
1-42 charge an amount for a debt cancellation agreement or waiver by
1-43 which, if the motor vehicle is rendered a total loss, the holder
1-44 agrees to cancel indebtedness on the contract in an amount computed
1-45 by subtracting the proceeds of the retail buyer's basic collision
1-46 insurance policy on the motor vehicle from the amount remaining
1-47 unpaid under the contract. In addition to other liability incurred
1-48 under the debt cancellation agreement or waiver, a holder may agree
1-49 to waive the deductible amount, if any, the retail buyer is
1-50 required to pay under the policy. A debt cancellation agreement or
1-51 waiver included in a retail installment contract as provided by
1-52 this subsection is not insurance or an insurance product or service
1-53 and is not subject to regulation by the commissioner of insurance
1-54 or the Texas Department of Insurance.
1-55 SECTION 2. This Act takes effect immediately if it receives
1-56 a vote of two-thirds of all the members elected to each house, as
1-57 provided by Section 39, Article III, Texas Constitution. If this
1-58 Act does not receive the vote necessary for immediate effect, this
1-59 Act takes effect September 1, 2001.
1-60 * * * * *