SRC-TNM S.B. 101 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 101
By: Haywood
Economic Development
3-18-97
As Filed


DIGEST 

Currently, all motorists, including drivers who have had their license
revoked due to failure to maintain adequate insurance, can purchase a
short-term insurance policy to satisfy the legal requirements of liability
insurance.  S.B. 101 would prohibit the Texas Department of Public Safety
from reinstating driver's licenses that were originally suspended on two
previous occasions for failure to maintain adequate liability insurance if
the current insurance policy issued to the driver is valid for a period of
less than 90 days and not paid in full.   

PURPOSE

As proposed, S.B. 101 establishes guidelines for proof of financial
responsibility for reinstatement of a driver's license or nonresident's
operating privilege. 

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 Chapter 601K, Transportation Code, by adding Section
601.343, as follows: 

Sec. 601.343. ESTABLISHMENT OF FINANCIAL RESPONSIBILITY FOR REINSTATEMENT.
Provides that this section applies only to a person who has had a driver's
license or a nonresident's operating privilege suspended under this
chapter more than twice.  Prohibits a person from establishing, for
purposes of reinstatement of the driver's license,  nonresident's
operating privilege, or issuance of a new driver's license, financial
responsibility through a motor vehicle liability insurance policy unless
the policy is valid for at least 90 days and all premiums on the policy
have been paid in full. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Emergency clause.