By: Carona H.B. No. 588
73R2816 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the provision by insurance companies of certain
1-3 insurance information to the Department of Public Safety and to the
1-4 use of that information by the department; providing an
1-5 administrative penalty.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. The Texas Motor Vehicle Safety-Responsibility Act
1-8 (Article 6701h, Vernon's Texas Civil Statutes) is amended by adding
1-9 Sections 19A and 19B to read as follows:
1-10 Sec. 19A. COMPUTER DATABASE; FUNDING. (a) When an
1-11 insurance company authorized to write motor vehicle liability
1-12 insurance in this state issues a motor vehicle liability insurance
1-13 policy to a person who is required to maintain insurance under
1-14 Section 1A of this Act and who is the holder of a Texas driver's
1-15 license, the insurance company shall furnish to the Department the
1-16 following information:
1-17 (1) the name of the insurance company;
1-18 (2) the insurance policy number;
1-19 (3) the effective date of the policy;
1-20 (4) the expiration date of the policy;
1-21 (5) the name, address, and driver's license number of
1-22 each driver insured by the policy;
1-23 (6) the make, year, and vehicle identification number
1-24 of each vehicle covered by the policy; and
2-1 (7) the policy limits or a statement that the coverage
2-2 of the policy complies with the minimum amount of liability
2-3 insurance required by this Act.
2-4 (b) The Department may require an insurance company to
2-5 provide information in addition to the information required under
2-6 Subsection (a) of this section.
2-7 (c) Each insurance company shall provide information
2-8 required under this section to the Department in the form
2-9 prescribed by the Department at least monthly, or at more frequent
2-10 intervals as prescribed by the Department.
2-11 (d) From the information provided by insurance companies
2-12 under this section, the Department shall develop and maintain a
2-13 computer database to be used in monitoring compliance with this
2-14 Act. Information in the database is not public information. The
2-15 Department shall develop procedures to enable law enforcement
2-16 officers on patrol to have access to the information in the
2-17 computer database.
2-18 (e) Each insurance company subject to this section shall
2-19 collect from the policyholder of a motor vehicle insurance
2-20 liability policy subject to this section a fee of $1 per policy
2-21 period for each motor vehicle insured under the policy. The
2-22 insurance company shall remit the fee to the comptroller in the
2-23 form and manner prescribed by the comptroller for deposit in the
2-24 general revenue fund and credited to a special account to be used
2-25 only to cover the costs of administration of this section.
2-26 (f) Failure of an insurance company to comply with the
2-27 requirements of this section constitutes grounds for the revocation
3-1 of the company's certificate of authority to engage in the business
3-2 of insurance in this state. The Department shall notify the
3-3 State Board of Insurance of each insurance company determined to be
3-4 in violation by the Department.
3-5 Sec. 19B. ADMINISTRATIVE PENALTY. (a) If the Department
3-6 determines that an insurance company has violated Section 19A of
3-7 this Act, the Department may assess an administrative penalty
3-8 against that insurance company as provided by this section.
3-9 (b) The Department may assess the administrative penalty in
3-10 an amount not to exceed $250 for each day of noncompliance. In
3-11 determining the amount of the penalty, the Department shall
3-12 consider the seriousness of the violation.
3-13 (c) If, after examination of a possible violation and the
3-14 facts relating to that possible violation, the Department
3-15 determines that a violation has occurred, the Department shall
3-16 issue a preliminary report that states the facts on which the
3-17 conclusion is based, the fact that an administrative penalty is to
3-18 be imposed, and the amount to be assessed. Not later than the 10th
3-19 day after the date on which the Department issues the preliminary
3-20 report, the Department shall send a copy of the report to the
3-21 insurance company charged with the violation, together with a
3-22 statement of the right of the insurance company to a hearing
3-23 relating to the alleged violation and the amount of the penalty.
3-24 (d) Not later than the 20th day after the date on which the
3-25 report is sent, the insurance company charged either may make a
3-26 written request for a hearing or may remit the amount of the
3-27 administrative penalty to the Department. Failure either to
4-1 request a hearing or to remit the amount of the administrative
4-2 penalty within the time provided by this subsection results in a
4-3 waiver of a right to a hearing under this Act. If the insurance
4-4 company charged requests a hearing, the hearing shall be conducted
4-5 in the manner provided for a contested case hearing under the
4-6 Administrative Procedure and Texas Register Act (Article 6252-13a,
4-7 Vernon's Texas Civil Statutes). If it is determined after hearing
4-8 that the insurance company has committed the alleged violation, the
4-9 Department shall give written notice to the insurance company of
4-10 the findings established by the hearing and the amount of the
4-11 penalty and shall enter an order requiring the insurance company to
4-12 pay the penalty.
4-13 (e) Not later than the 30th day after the date on which the
4-14 notice is received, the insurance company charged shall pay the
4-15 administrative penalty in full, or, if the insurance company wishes
4-16 to contest either the amount of the penalty or the fact of the
4-17 violation, forward the assessed amount to the Department for
4-18 deposit in an escrow account. If, after judicial review, it is
4-19 determined that no violation occurred or that the amount of the
4-20 penalty should be reduced, the Department shall remit the
4-21 appropriate amount to the insurance company charged with the
4-22 violation not later than the 30th day after the date on which the
4-23 judicial determination becomes final.
4-24 (f) Failure to remit the amount of the administrative
4-25 penalty to the Department within the time provided by Subsection
4-26 (e) of this section results in a waiver of all legal rights to
4-27 contest the violation or the amount of the penalty.
5-1 SECTION 2. This Act takes effect September 1, 1993, and
5-2 applies only to a policy of motor vehicle liability insurance that
5-3 is delivered, issued for delivery, or renewed on or after January
5-4 1, 1994. A policy that is delivered, issued for delivery, or
5-5 renewed before January 1, 1994, is governed by the law as it
5-6 existed immediately before the effective date of this Act, and that
5-7 law is continued in effect for that purpose.
5-8 SECTION 3. The importance of this legislation and the
5-9 crowded condition of the calendars in both houses create an
5-10 emergency and an imperative public necessity that the
5-11 constitutional rule requiring bills to be read on three several
5-12 days in each house be suspended, and this rule is hereby suspended.