JH C.S.H.B. 1166 75(R)    BILL ANALYSIS


URBAN AFFAIRS
C.S.H.B. 1166
By: Garcia
4-17-97
Committee Report (Substituted)



BACKGROUND 

Certain of the state's larger municipalities place restrictions on the
insurance companies which may be used by taxicab companies within their
jurisdictions.  This has the effect of restricting the availability of
insurance companies willing to insure taxicabs.  The result is that small
and midsized taxicab companies, which have difficulty meeting the
selective underwriting guidelines of a limited insurance market, may be
forced out of business or may have to pay non-competitive and excessive
premiums.  It is in the public interest that such an insurance market be
open to all authorized insurance companies meeting the standards of
reliability set by the state, and administered by the Texas Department of
Insurance, to protect both vehicle owners and the general public. 

Chapter 215 of the Local Government Code is entitled Municipal Regulation
of Miscellaneous Businesses and Other Activities.  It contains provisions
for the regulation of explosives, rendering plants, dairies, peddlers, and
others. 

PURPOSE

C.S.H.B. 1166 would regulate municipal requirements for taxicab insurance.

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 215.004 of the Local Government Code to require
a municipal   ordinance requiring taxicab insurance to be obtained from a
company authorized   to transact business in Texas.  Exempts taxicab
companies which are self-insured.   Ordinance may disqualify insurance
company only for hazardous      financial condition or for state of
supervision, both determined by commissioner   of insurance.  Allows city
requirement of certification for reinsurance if insurance   required by
ordinance exceeds ten percent of insurance company's capital.
Disallows other municipal regulation of taxicab insurance.   
 
 
SECTION 2. Effective date September 1, 1997

SECTION 3. Emergency Clause


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute adds the provisions concerning self-insurance, reinsurance,
and the financial condition of insurance companies as determined by the
commissioner of insurance.