By Gutierrez H.B. No. 1802 74R3389 DWS-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the method of furnishing evidence of financial 1-3 responsibility for operation of a motor vehicle and to the 1-4 information included on a motor vehicle certificate of title; 1-5 providing for certain fees and for administrative and criminal 1-6 penalties. 1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-8 SECTION 1. Article I, Texas Motor Vehicle 1-9 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil 1-10 Statutes), is amended by adding Section 1B-2 to read as follows: 1-11 Sec. 1B-2. ELECTRONIC EVIDENCE OF FINANCIAL RESPONSIBILITY. 1-12 (a) The Texas Department of Insurance by rule shall provide a 1-13 system for furnishing evidence of financial responsibility by use 1-14 of a magnetic card or a similar device that allows electronic 1-15 communication with a computerized database containing information 1-16 concerning motor vehicle insurance coverage. The Texas Department 1-17 of Insurance shall contract with private service providers to 1-18 provide the system. 1-19 (b) Each insurance company providing motor vehicle liability 1-20 policies in this state shall provide the Texas Department of 1-21 Insurance or private service provider with necessary information 1-22 concerning each policy, including: 1-23 (1) the name of the insurance company; 1-24 (2) the insurance policy number; 2-1 (3) the effective date of the policy; 2-2 (4) the expiration date of the policy; 2-3 (5) the name, address, driver's license number, and 2-4 date of birth of each driver insured by the policy; 2-5 (6) the make, year, and vehicle identification number 2-6 of each vehicle covered by the policy; 2-7 (7) any information on the cancellation of the policy; 2-8 and 2-9 (8) a statement that the coverage of the policy 2-10 complies with the minimum amount of liability insurance required by 2-11 this Act. 2-12 (c) Each insurance company shall provide information 2-13 required by Subsection (b) of this section to the Texas Department 2-14 of Insurance in the electronic data format prescribed by the 2-15 commissioner of insurance monthly or more frequently as prescribed 2-16 by the commissioner. Information provided by an insurance company 2-17 under this section remains the property of the insurance company 2-18 and may not be sold or made available except to enforce a state law 2-19 or insurance company guideline. 2-20 (d) The department shall provide the Texas Department of 2-21 Insurance or private service provider the following information on 2-22 each Texas driver's license holder: 2-23 (1) the holder's name, address, and date of birth; 2-24 (2) the driver's license number and expiration date; 2-25 and 2-26 (3) any information on suspension or revocation of the 2-27 driver's license. 3-1 (e) The Texas Department of Transportation shall provide the 3-2 Texas Department of Insurance the following information for each 3-3 vehicle to which this Act applies, to the extent the information 3-4 is in the Texas Department of Transportation's records: 3-5 (1) the owner's name, address, and driver's license 3-6 number; 3-7 (2) the vehicle identification number; 3-8 (3) the vehicle's description; and 3-9 (4) the date the vehicle was purchased or acquired by 3-10 that owner. 3-11 (f) Each agency shall provide the information required under 3-12 Subsection (d) or (e) of this section in electronic data format. 3-13 The department shall provide the information under Subsection (d) 3-14 of this section on the day after the date the license is issued. 3-15 The Texas Department of Transportation shall provide the 3-16 information under Subsection (e) of this section on the day after 3-17 the date the registration for the vehicle is issued. If required 3-18 information changes, the agency shall notify the Texas Department 3-19 of Insurance of the change on the day after the date the agency 3-20 first knows of the change. 3-21 (g) Beginning on the date that the Texas Department of 3-22 Insurance by rule designates as the effective date of the system 3-23 established under this section, the evidence of insurance described 3-24 by Sections 1B(a)(1), (2), and (3) of this Act is not sufficient 3-25 evidence of financial responsibility for purposes of this Act 3-26 except during the 30-day period after the date of issuance of the 3-27 insurance policy, standard proof of liability insurance form, or 4-1 insurance binder form, as applicable. 4-2 (h) The insurance company shall collect from the policy 4-3 holder: 4-4 (1) a one-time fee of $1 when the policy is issued for 4-5 the card or device required for insurance verification under the 4-6 system; and 4-7 (2) for each vehicle for each policy period, an amount 4-8 that is determined by the commissioner of insurance to be necessary 4-9 to implement this section, but that is not less than $1. 4-10 (i) A fee under Subsection (h) of this section shall be 4-11 remitted not later than the third day of the month after the month 4-12 in which the fee is collected to the commissioner of insurance or 4-13 the private service provider. Notwithstanding any law providing 4-14 for disposition of fees collected by the department or another 4-15 state agency, the fees remitted under this section shall be 4-16 retained by the entity to which they are remitted and, if remitted 4-17 to the commissioner of insurance, used only for the administration 4-18 of this section. 4-19 (j) An officer or employee of an insurance company or 4-20 officer, employee, or agent of the department, the Texas Department 4-21 of Insurance, or the Texas Department of Transportation is not 4-22 liable in a civil action for an act performed in good faith in 4-23 providing information in compliance with this Act. 4-24 (k) Failure of an insurance company to comply with this 4-25 section is a ground for the revocation of the company's certificate 4-26 of authority to engage in the business of selling automobile 4-27 liability insurance in this state. 5-1 (l) If the commissioner of insurance determines that an 5-2 insurance company has violated this section, the commissioner may 5-3 assess an administrative penalty against that insurance company in 5-4 an amount not to exceed $250 for each policy involved for each day 5-5 of noncompliance. Not later than the 10th day after the date on 5-6 which the commissioner determines a violation has occurred, the 5-7 commissioner shall send a notice of the determination to the 5-8 insurance company involved with a statement of the right of the 5-9 insurance company to a hearing relating to the alleged violation 5-10 and the amount of the penalty. Not later than the 20th day after 5-11 the date on which the report is sent, the insurance company may 5-12 make a written request for a hearing or may remit the amount of the 5-13 administrative penalty to the Texas Department of Insurance. 5-14 Failure to request a hearing or to remit the amount of the 5-15 administrative penalty within the time provided by this subsection 5-16 waives the right to a hearing under this subsection. Not later 5-17 than the 30th day after the date on which the notice is received, 5-18 the insurance company charged shall pay the administrative penalty 5-19 in full, or, if the insurance company wishes to contest the amount 5-20 of the penalty or the fact of the violation, forward the amount of 5-21 the penalty assessed to the Texas Department of Insurance for 5-22 deposit in an escrow account. If, after the hearing or judicial 5-23 review, it is determined that a violation did not occur or that the 5-24 amount of the penalty should be reduced, the Texas Department of 5-25 Insurance shall remit the appropriate amount to the insurance 5-26 company charged with the violation not later than the 30th day 5-27 after the date on which the determination becomes final. Failure 6-1 to remit the amount of the administrative penalty as provided by 6-2 this subsection waives the right to contest the violation or the 6-3 amount of the penalty. 6-4 (m) A person who knowingly releases information maintained 6-5 by the Texas Department of Insurance or a private service provider 6-6 under this section commits an offense. An offense under this 6-7 section is a Class A misdemeanor. 6-8 SECTION 2. Section 24, Certificate of Title Act (Article 6-9 6687-1, Vernon's Texas Civil Statutes), is amended to read as 6-10 follows: 6-11 Sec. 24. The term "Certificate of Title" means a written 6-12 instrument which may be issued solely by and under the authority of 6-13 the department, and which must give the following data together 6-14 with such other data as the department may require from time to 6-15 time: 6-16 (a) The name and address of the purchaser and seller 6-17 at first sale or transferee and transferor at any subsequent sale. 6-18 (b) The make. 6-19 (c) The body type. 6-20 (d) The motor number. 6-21 At such time as the stamping of permanent 6-22 identification numbers on motor vehicles in a manner and place 6-23 easily accessible for physical examination is universally adopted 6-24 by motor vehicle manufacturers as the permanent vehicle 6-25 identification, the department is authorized to use such permanent 6-26 identification number as the major identification of motor vehicles 6-27 subsequently manufactured. The motor number will continue to be 7-1 the major identification of vehicles manufactured before such 7-2 change is adopted. 7-3 (e) The serial number. 7-4 (f) The license number of the current Texas plates. 7-5 (g) The names and addresses and dates of any liens on 7-6 the motor vehicle, in chronological order of recordation. 7-7 (h) If no liens are registered on the motor vehicle, a 7-8 statement of such fact. 7-9 (i) A space for the signature of the owner and the 7-10 owner shall write his name with pen and ink in such space upon 7-11 receipt of the certificate. 7-12 (j) A statement indicating "rights of survivorship" 7-13 when an agreement providing that the motor vehicle is to be held 7-14 between a husband and his wife jointly with the interest of either 7-15 spouse who dies to survive to the surviving spouse is surrendered 7-16 with the application for certificate of title. This agreement is 7-17 valid only if signed by both husband and wife and, if signed, the 7-18 certificate shall be issued in the name of both. 7-19 (k) If the motor vehicle is equipped with an odometer, 7-20 the number of miles the motor vehicle has travelled as reflected by 7-21 the application. 7-22 (l) The driver's license number, if any, of the 7-23 purchaser at first sale or transferee at any subsequent sale, and 7-24 the state that issued the driver's license. 7-25 SECTION 3. Section 24(l), Certificate of Title Act (Article 7-26 6687-1, Vernon's Texas Civil Statutes), as added by this Act, 7-27 applies only to a certificate of title issued on or after the 8-1 effective date of this Act. 8-2 SECTION 4. This Act takes effect September 1, 1995. 8-3 SECTION 5. The importance of this legislation and the 8-4 crowded condition of the calendars in both houses create an 8-5 emergency and an imperative public necessity that the 8-6 constitutional rule requiring bills to be read on three several 8-7 days in each house be suspended, and this rule is hereby suspended.