1-1                                   AN ACT

 1-2     relating to proof of insurance filed with the Texas Department of

 1-3     Public Safety by certain motorists uninsured at the time of an

 1-4     accident.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 601.083, Transportation Code, is amended

 1-7     by adding Subsection (e) to read as follows:

 1-8           (e)  If a person files a certificate of insurance to

 1-9     establish financial responsibility under Section 601.153, the

1-10     certificate must state that the requirements of Section 601.153(b)

1-11     are satisfied.

1-12           SECTION 2.  Section 601.153, Transportation Code, is amended

1-13     to read as follows:

1-14           Sec. 601.153.  DEPOSIT OF SECURITY; EVIDENCE OF FINANCIAL

1-15     RESPONSIBILITY.  (a)  The department may not suspend a driver's

1-16     license, vehicle registration, or nonresident's privilege under

1-17     this subchapter if the owner or operator:

1-18                 (1)  deposits with the department security in an amount

1-19     determined to be sufficient under Section 601.154 or 601.157 as

1-20     appropriate; and

1-21                 (2)  files evidence of financial responsibility as

1-22     required by this chapter.

1-23           (b)  If the owner or operator chooses to establish financial

1-24     responsibility under Subsection (a)(2) by filing evidence of motor

 2-1     vehicle liability insurance, the owner or operator must file a

 2-2     certificate of insurance for a policy that has a policy period of

 2-3     at least six months and for which the premium for the entire policy

 2-4     period is paid in full.

 2-5           (c)  Notwithstanding Section 601.085, coverage for a motor

 2-6     vehicle under a motor vehicle liability policy for which a person

 2-7     files with the department a certificate of insurance under

 2-8     Subsection (b) may not be canceled unless:

 2-9                 (1)  the person no longer owns the motor vehicle;

2-10                 (2)  the person dies;

2-11                 (3)  the person has a permanent incapacity that renders

2-12     the person unable to drive the motor vehicle; or

2-13                 (4)  the person surrenders to the department the

2-14     person's driver's license and the vehicle registration for the

2-15     motor vehicle.

2-16           SECTION 3.  (a) This Act takes effect September 1, 1997.

2-17           (b)  This Act applies only to a certificate of motor vehicle

2-18     liability insurance filed with the Texas Department of Public

2-19     Safety on or after January 1, 1998.  A certificate of motor vehicle

2-20     liability insurance filed with the Texas Department of Public

2-21     Safety before January 1, 1998, is governed by the law as it existed

2-22     immediately before the effective date of this Act, and that law is

2-23     continued in effect for that purpose.

2-24           SECTION 4.  The importance of this legislation and the

2-25     crowded condition of the calendars in both houses create an

2-26     emergency and an imperative public necessity that the

2-27     constitutional rule requiring bills to be read on three several

 3-1     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 627 was passed by the House on April

         18, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 627 was passed by the Senate on May

         10, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor