SRC-MAX H.B. 1166 75(R) BILL ANALYSIS Senate Research Center H.B. 1166 By: Garcia (Lucio) Intergovernmental Relations 5-12-97 Engrossed DIGEST Currently, the state's larger municipalities place restrictions on the insurance companies which may be used by taxicab companies within their jurisdictions. There are concerns that small to midsized taxicab companies are being treated unfairly by the state with respect to these insurance restrictions. This bill regulates municipal requirements for taxicab insurance. PURPOSE As proposed, H.B. 1166 sets forth provisions regarding municipal regulations concerning insurance for taxicabs. 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 215.004, Local Government Code, by redesignating Subsection (c) as Subsection (f) and amending that subsection, and by adding new Subsections (c)-(e), to require insurance required for a taxicab under an ordinance adopted under Subsection (b) to be obtained from a reliable insurance company authorized to do business in this state in certain circumstances. Authorizes a municipality to find that an insurance company does not comply with an ordinance adopted under Subsection (b) only if certain conditions are fulfilled. Authorizes a municipality to require a written certification that the insurance company has reinsurance for which credit may be taken, in certain circumstances. Prohibits a municipality from regulating passenger taxicab transportation services with respect to an insurance company insuring a taxicab in the municipality. Makes a conforming change. SECTION 2. Effective date: September 1, 1997. SECTION 3. Emergency clause.