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.