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.