BILL ANALYSIS



C.S.H.B. 1319
By: Counts
04-12-95
Committee Report (Substituted)


BACKGROUND

     The 73rd Texas Legislature passed House Bill 1461 (the
Department of Insurance Sunset bill) which amended Article 6701h,
Sec. 1B, V.T.C.S., providing for the unauthorized use of a proof of
liability insurance documentation would constitute a tampering of
a governmental record. The original amendment was drafted to amend
House Bill 1238 (the Department of Public Safety Sunset bill),
however the amendment was attached to House Bill 1461, 73rd
Legislature.

     The legislative intent of the amendment was to give law
enforcement officers an effective tool in which to fight the
growing crime of counterfeit proof of liability insurance cards. 
Unfortunately, due to a drafting error to House Bill 1461, a number
of counterfeit insurance card cases filed by the Harris County
district attorney were dismissed by the judge. The judge's ruling
cited the defendants violated no law since the law does not exist.

PURPOSE

     As substituted, House Bill 1319 establishes a criminal
offense; making, presenting, using, possessing or selling a false
evidence of financial responsibility as genuine evidence of
responsibility. If the offense is committed with the intent to
defraud or harm another, then the offense is a state jail felony or
second degree felony. If there is no intent to defraud or harm
another, then the offense is a Class A misdemeanor or third degree
felony.

RULEMAKING AUTHORITY

     It is the committee's opinion that this bill does not
expressly grant any additional rulemaking authority to a state
officer, department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.

Amends Article V, Texas Motor Vehicle Safety-Responsibility Act
(Article 6701h, Vernon's Texas Civil Statutes) by adding Section
32A: FALSE EVIDENCE OF FINANCIAL RESPONSIBILITY.

(a)  A person commits an offense if the person:
       (1)  Presents or uses false evidence of financial
                   responsibility with knowledge of falsity and intent
                   to use as genuine evidence.
       (2)  Makes, possesses, sells or offers to sell false
                   evidence of financial responsibility with knowledge
                   of falsity.
       (3)  Possesses blank evidence of financial
                   responsibility and is not authorized to issue
                   evidence.
       (4)  Sells or offers to sell blank evidence of financial
                   responsibility.
       
  (b)  Definition of "false evidence of financial
         responsibility."
  
  (c)  Presentation or use of a lapsed but validly issued
         evidence of financial responsibility is not an offense
         under Subsection (a)(1) unless there is an intent to
         defraud or harm another.
  
  (d)  Provides for defense to prosecution under Subsection (a)
         (3) or (a) (4) if acting in ordinary course of business.
  
  (e)  Explains offense under Subsection (a)(1) as a Class A
         misdemeanor, unless intent to defraud or harm, then
         becomes a state jail felony.
  
  (f)  Explains offense under Subsection (a)(2),(a)(3) or (a)(4)
         as third degree felony, unless intent to defraud or harm,
         then becomes a felony of the second degree.
  
  (g)  Delineates intent to defraud or harm when person act with
         two or more evidences of responsibility forms or uses the
         evidence for certain purposes.
  
  (h)  Definition of "evidence of financial responsibility." 
  
  SECTION 2. 
  
  Amends Section 32(b), Texas Motor Vehicle
  Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
  Statutes), by deleting language which is covered in other
  sections of the bill.
  
  SECTION 3.
  
  List of Sections repealed in the Texas Motor Vehicle
  Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
  Statutes) which are provided for in this Act.
  
  SECTION 4.
  
  (a)  Explanation of effective date for punishment phase of
         this Act. 
  (b)  Offense committed before effective date of this Act is
         covered by current law.
  
  SECTION 5.     Effective Date
  
  SECTION 6.     Emergency Clause
  
  COMPARISON OF ORIGINAL TO SUBSTITUTE
  
       The committee substitute reduces the penalty for
  presenting or using a false evidence of financial
  responsibility from a felony of the third degree to a Class A
  misdemeanor (unless there was intent to defraud or harm, in
  which case the offense is a state jail felony).  The
  substitute adds a definition for "false evidence of financial
  responsibility."  The substitute adds the language in
  Subsection (c) concerning lapsed evidence of financial
  responsibility.  The substitute also adds the presumption for
  intent to defraud or harm when the evidence is used for the
  purposes set out in Subsection (g).  Finally, the substitute
  modifies the definition of "evidence of financial
  responsibility" with respect to standard proofs of motor
  vehicle liability insurance forms to add the qualification
  that they be promulgated by the Texas Department of Insurance
  and with respect to certificates issued under certain sections
  of Article 6701h to specify that the certificates must be
  issued by the department, the State Treasury or a county
  court.
  
  SUMMARY OF COMMITTEE ACTION
  
       In accordance with House Rules, H.B. 1319 was heard in a
  public hearing on March 29, 1995.  The Chair laid out H.B.
  1319 and recognized Representative Counts to explain the bill. 
  The Chair recognized the following person to testify in
  support of H.B. 1319: Terry Kendig, Texas Department of Public
  Safety Officers Association.  The Chair left H.B. 1319 as
  pending business before the Committee.
  
       On April 12, 1995, the Chair laid out H.B. 1319 as
  pending business and recognized Representative Counts who
  offered a substitute to H.B. 1319 and moved the Committee
  adopt the substitute to H.B. 1319. 
  
  
  SUMMARY OF COMMITTEE ACTION   (Continued)
  
       The Chair heard no objections and the substitute to H.B.
  1319 was adopted.  The Chair recognized Representative G.
  Lewis who moved the Committee report H.B. 1319 as substituted
  to the full House with the recommendation that it do pass and
  be printed.  Representative Dutton seconded the motion and the
  motion prevailed by the following vote:  AYES (9); NAYS (0);
  ABSENT (0); PNV (0);