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.