SRC-AAA H.B. 627 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 627
By: Flores (Truan)
Economic Development
5-5-97
Engrossed


DIGEST 

Currently, the Department of Public Safety (department) is authorized to
suspend the driver's license and vehicle registration of an uninsured
motorist who is involved in and likely to be charged for an accident
resulting in death or injury or more than $1,000 in property damage.  The
department may not suspend any privileges if the person deposits with the
department sufficient security or files evidence of financial
responsibility.  Although insurance certificates are required to register
a vehicle, often the owners either cancel the policy after registering
their vehicles or fail to keep current on their premiums.  This bill would
require an underinsured motorist to use a certificate of insurance as
evidence of financial responsibility.  Additionally, the insurance policy
would have to be for at least six months and the premium paid in full. 

PURPOSE

As proposed, H.B. 627 requires uninsured motorists convicted of  driving
without liability insurance to purchase a six-month insurance policy to
avoid having their driving privileges suspended.                  
RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 601.083, Transportation Code, by adding
Subsection (e), to require a person who files a certificate of insurance
to establish financial responsibility to state that the requirements of
Section 601.153(b), are satisfied. 

SECTION 2. Amends Section 601.153, Transportation Code, to set forth the
requirements of filing a certificate of insurance. Prohibits coverage for
a motor vehicle for which a certificate of insurance is filed from being
cancelled unless certain situations exist. 

SECTION 3. Effective date: September 1, 1997.
  Makes application of this Act prospective to January 1, 1998.

SECTION 4. Emergency clause.