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);