RS C.S.H.B. 627 75(R)    BILL ANALYSIS


INSURANCE
C.S.H.B. 627
By: Flores
4-7-97
Committee Report (Substituted)



BACKGROUND 
Uninsured motorists are a major problem in the state of Texas. Our
proximity to Mexico compounds the problem in particular the metropolitan
areas along the Rio Grande. In 1995, of the approximately 650,000
automobile accidents in Texas, more than 100,000 of them involved drivers
who carried no liability car insurance causing millions of dollars in
damages and countless injuries to humans.  With nearly 21% of drivers in
Texas being uninsured and the population continually growing, addressing
the problem is complex.   

PURPOSE
As proposed, House Bill 627 would require uninsured motorists convicted of
driving without liability insurance to purchase a six month insurance
policy to avoid having their driving privileges suspended. 

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 Section 601.083, Transportation Code by adding
subsection (e) as follows:  

(e) If a person files a certificate of insurance to establish financial
responsibility under Section 601.153, the certificate must state that
requirements of the section are satisfied. 

SECTION 2. Amends Sec. 601.153, Transportation Code by making technical
changes to subsection (a) and adding subsection (b) and (c). 

(a) Adds "under this subchapter" to reflect new additions.

(b) specifies uninsured motorists must file 6 month insurance policy to
establish financial responsibility. 

(c) specifies acceptable reasons for being able to cancel mandated 6-month
insurance policy. 

SECTION 3.  (a) Effective date of September 1, 1997
(b) This act shall apply to policies enacted or renewed on or after
January 1, 1998 

SECTION 4. Emergency clause

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 627 adds subsection (c) in Section 2 that stipulates the only
acceptable reasons for someone who was convicted of driving without
liability insurance to be able to cancel their 6month policy which they
were forced to commit to.