By Cuellar H.B. No. 414
75R2130 DLF-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to identification of uninsured motorists; imposing
1-3 penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 601, Transportation Code, is amended by
1-6 adding Subchapter N to read as follows:
1-7 SUBCHAPTER N. UNINSURED MOTORIST IDENTIFICATION DATABASE
1-8 PROGRAM; INSURER REPORTING REQUIREMENTS
1-9 Sec. 601.501. DEFINITIONS. In this subchapter:
1-10 (1) "Database" means the uninsured motorist
1-11 identification database established under this subchapter.
1-12 (2) "Designated agent" means the person administering
1-13 the program under contract with the department.
1-14 (3) "Program" means the uninsured motorist
1-15 identification database program established under this subchapter.
1-16 Sec. 601.502. UNINSURED MOTORIST IDENTIFICATION DATABASE
1-17 PROGRAM. The department shall establish an uninsured motorist
1-18 identification database program under this subchapter. The program
1-19 shall be administered by the designated agent under the direction
1-20 of the department.
1-21 Sec. 601.503. DESIGNATED AGENT. (a) The department shall
1-22 contract with a person to act as the department's designated agent
1-23 under this subchapter. The contract shall be awarded under a
1-24 competitive bid procedure in accordance with department rule. The
2-1 contract may not obligate the department to pay more money than is
2-2 appropriated to the department from fees collected under Section
2-3 502.1695.
2-4 (b) The designated agent is not liable for damages arising
2-5 from the good faith execution of the designated agent's duties
2-6 under this subchapter.
2-7 Sec. 601.504. DATABASE. (a) The designated agent shall
2-8 develop and maintain a computer database to manage and provide
2-9 access to the information provided under Sections 601.508, 601.509,
2-10 and 601.510.
2-11 (b) The database must be developed and maintained in
2-12 accordance with guidelines adopted by the department. The
2-13 guidelines must permit efficient access to the database by state
2-14 and local law enforcement agencies.
2-15 (c) Information in the database is confidential and not
2-16 subject to disclosure under Chapter 552, Government Code, except as
2-17 provided by this subsection. Information in the database may be
2-18 disclosed to a state or local governmental agency to enforce this
2-19 chapter. Information from the database that is included in an
2-20 accident report prepared by a peace officer is subject to release
2-21 under Section 550.065. On request, the designated agent may
2-22 disclose whether or not a person is a named insured on a policy of
2-23 motor vehicle insurance to:
2-24 (1) that person;
2-25 (2) the person's parent, managing or possessory
2-26 conservator, or court-appointed custodian, if the person is an
2-27 unemancipated minor;
3-1 (3) the legal guardian of the person;
3-2 (4) another person who holds a power of attorney from
3-3 the person; and
3-4 (5) another person who holds a document authorizing
3-5 release of the information that is signed by the person with
3-6 respect to whom the information is sought, notarized, and dated not
3-7 earlier than the 90th day before the date on which the information
3-8 is sought.
3-9 (d) A person who knowingly releases or discloses information
3-10 from the database in violation of this section commits an offense.
3-11 An offense under this subsection is Class A misdemeanor.
3-12 Sec. 601.505. UPDATE AND COMPARISON. As frequently as is
3-13 required by the department, but at least once each month, the
3-14 designated agent shall:
3-15 (1) update the database with the information provided
3-16 under Sections 601.508, 601.509, and 601.510; and
3-17 (2) compare the information relating to motor vehicle
3-18 registrations against the information relating to motor vehicle
3-19 liability insurance.
3-20 Sec. 601.506. COMPARISON RESULTS; NOTIFICATION. (a) If the
3-21 comparison conducted under Section 601.505(2) shows that a
3-22 registered motor vehicle that is subject to the requirements of
3-23 this chapter is not covered by a policy of insurance during three
3-24 consecutive months, the designated agent, at the direction of the
3-25 department, shall notify the registered owner of the motor vehicle
3-26 of that fact and of the requirements of this section.
3-27 (b) Not later than the 45th day after the date the notice is
4-1 mailed, the registered owner of the motor vehicle shall provide to
4-2 the designated agent:
4-3 (1) evidence of financial responsibility that
4-4 satisfies the requirements of Section 601.051; or
4-5 (2) a sworn statement, signed by the person, that:
4-6 (A) the motor vehicle is not a motor vehicle for
4-7 which evidence of financial responsibility is required under this
4-8 chapter; or
4-9 (B) the motor vehicle is no longer owned by the
4-10 person.
4-11 (c) The designated agent, at the direction of the
4-12 department, may provide additional notices under Subsection (a).
4-13 Sec. 601.507. SUSPENSION OF DRIVER'S LICENSE OR VEHICLE
4-14 REGISTRATION. (a) The department, after notice and hearing, may
4-15 suspend the driver's license or vehicle registration of a person
4-16 who violates Section 601.506(b). The department may not suspend
4-17 the license or registration if the person:
4-18 (1) provides to the department evidence of financial
4-19 responsibility that satisfies the requirements of Section 601.051;
4-20 or
4-21 (2) demonstrates, to the satisfaction of the
4-22 department, that:
4-23 (A) the motor vehicle is not a motor vehicle for
4-24 which evidence of financial responsibility is required under this
4-25 chapter; or
4-26 (B) the motor vehicle is no longer owned by the
4-27 person.
5-1 (b) Suspension of a driver's license or vehicle registration
5-2 under this section is subject to Subchapter L. The license or
5-3 registration may not be reinstated unless the person complies with
5-4 Section 601.376.
5-5 Sec. 601.508. INSURANCE COMPANY REPORT TO DESIGNATED AGENT.
5-6 (a) Not later than the seventh day of each month, an insurance
5-7 company that writes a motor vehicle liability insurance policy
5-8 shall provide to the designated agent a record of each motor
5-9 vehicle insurance policy issued by the company and in effect on the
5-10 first day of the month preceding the month in which the report is
5-11 made.
5-12 (b) The report must include:
5-13 (1) the name, date of birth, and driver's license
5-14 number of each insured owner or operator;
5-15 (2) the address of the named insured;
5-16 (3) the make, year, and vehicle identification number
5-17 of each insured vehicle; and
5-18 (4) the policy number, effective date, and expiration
5-19 of each policy.
5-20 (c) The insurance company shall provide the report in a
5-21 computer readable format as required by department rule.
5-22 (d) An insurance company that violates this section is
5-23 subject to an administrative penalty under Article 1.10E, Insurance
5-24 Code. The penalty may not exceed $250 for each violation. Each
5-25 day of a continuing violation constitutes a separate violation. If
5-26 the commissioner of insurance determines that an insurance
5-27 company's violation of this section was inadvertent, accidental, or
6-1 the result of excusable neglect, the commissioner may not assess
6-2 the penalty.
6-3 (e) This section applies only to a motor vehicle insurance
6-4 policy written or intended to satisfy or held out as satisfying the
6-5 requirements of Subchapter D.
6-6 (f) A motor vehicle insurance company is not liable to any
6-7 person for damages arising as a result of providing information as
6-8 required by this section.
6-9 Sec. 601.509. DEPARTMENT INFORMATION. The department shall
6-10 provide to the designated agent the name, date of birth, address,
6-11 and driver's license number of each person who holds a driver's
6-12 license issued by the department.
6-13 Sec. 601.510. TEXAS DEPARTMENT OF TRANSPORTATION
6-14 INFORMATION. The Texas Department of Transportation shall provide
6-15 to the designated agent, for each motor vehicle registered by that
6-16 department:
6-17 (1) the full name and address of the owner of the
6-18 vehicle; and
6-19 (2) the trade name, year model, style and type of
6-20 body, and vehicle identification number of the vehicle.
6-21 Sec. 601.511. RULES. The department may adopt rules as
6-22 necessary to implement this subchapter. The department shall
6-23 consult with the Texas Department of Transportation with respect to
6-24 rules affecting reporting of information relating to vehicle
6-25 registrations and suspension of vehicle registrations.
6-26 SECTION 2. Subchapter D, Chapter 502, Transportation Code,
6-27 is amended by adding Section 502.1695 to read as follows:
7-1 Sec. 502.1695. UNINSURED MOTORIST IDENTIFICATION DATABASE
7-2 FEE. (a) In addition to a fee otherwise imposed for registration
7-3 of a vehicle under this subchapter, at the time a person applies
7-4 for registration or renewal of registration of a motor vehicle, the
7-5 applicant shall pay an uninsured motorist identification database
7-6 fee of $1 for each motor vehicle.
7-7 (b) This section does not apply to:
7-8 (1) a vehicle that is not registered for use on the
7-9 highway;
7-10 (2) a traction engine;
7-11 (3) a road roller or grader;
7-12 (4) a tractor crane;
7-13 (5) a power shovel;
7-14 (6) a well driller; or
7-15 (7) an implement of husbandry.
7-16 (c) The department shall remit the money collected under
7-17 this section to the comptroller for deposit to a separate account
7-18 in the state treasury. The comptroller shall credit the account
7-19 with the interest earned on the account. Money in the account may
7-20 be appropriated only to the Department of Public Safety or the
7-21 department to administer their duties under Subchapter N, Chapter
7-22 601.
7-23 SECTION 3. Section 502.104, Transportation Code, is amended
7-24 to read as follows:
7-25 Sec. 502.104. DISPOSITION OF CERTAIN SPECIAL FEES. Each
7-26 Monday a county assessor-collector shall send to the department an
7-27 amount equal to collections for the preceding week for:
8-1 (1) each transfer fee collected under Section 502.175;
8-2 and
8-3 (2) each fee collected under Section 502.169(b),
8-4 502.1695, or 502.279.
8-5 SECTION 4. This Act takes effect September 1, 1997.
8-6 SECTION 5. (a) Not later than December 31, 1997, the
8-7 Department of Public Safety shall:
8-8 (1) contract with an entity to serve as designated
8-9 agent under Subchapter N, Chapter 601, Transportation Code, as
8-10 added by this Act; and
8-11 (2) adopt any rules necessary to implement Subchapter
8-12 N, Chapter 601, Transportation Code, as added by this Act.
8-13 (b) A motor vehicle insurance company is not required to
8-14 provide information under Section 601.508, Transportation Code, as
8-15 added by this Act, before January 1, 1998.
8-16 SECTION 6. The importance of this legislation and the
8-17 crowded condition of the calendars in both houses create an
8-18 emergency and an imperative public necessity that the
8-19 constitutional rule requiring bills to be read on three several
8-20 days in each house be suspended, and this rule is hereby suspended.