HBA-ATS, TYH H.B. 3515 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3515
By: Marchant
Financial Institutions
6/24/1999
Enrolled




BACKGROUND AND PURPOSE 

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.  H.B. 3515 codifies this interpretation
by establishing that a warranty or service contract sold by the retail
seller of a motor vehicle to a retail buyer is not insurance.  This bill
also authorizes a seller to offer involuntary unemployment insurance to the
buyer at the time a retail installment contract is executed, as additional
protection for the contract. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 348.202, Finance Code, by adding a new
Subsection (b), to authorize a seller to offer involuntary unemployment
insurance to the buyer at the time a retail installment contract is
executed, as additional protection for the contract, and to redesignate the
current Subsection (b) to Subsection (c) and make 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.  

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