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.