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.