1-1     By:  Flores (Senate Sponsor - Truan)                   H.B. No. 627

 1-2           (In the Senate - Received from the House April 21, 1997;

 1-3     April 22, 1997, read first time and referred to Committee on

 1-4     Economic Development; May 7, 1997, reported favorably by the

 1-5     following vote:  Yeas 7, Nays 0; May 7, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to proof of insurance filed with the Texas Department of

 1-9     Public Safety by certain motorists uninsured at the time of an

1-10     accident.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 601.083, Transportation Code, is amended

1-13     by adding Subsection (e) to read as follows:

1-14           (e)  If a person files a certificate of insurance to

1-15     establish financial responsibility under Section 601.153, the

1-16     certificate must state that the requirements of Section 601.153(b)

1-17     are satisfied.

1-18           SECTION 2.  Section 601.153, Transportation Code, is amended

1-19     to read as follows:

1-20           Sec. 601.153.  DEPOSIT OF SECURITY; EVIDENCE OF FINANCIAL

1-21     RESPONSIBILITY.  (a)  The department may not suspend a driver's

1-22     license, vehicle registration, or nonresident's privilege under

1-23     this subchapter if the owner or operator:

1-24                 (1)  deposits with the department security in an amount

1-25     determined to be sufficient under Section 601.154 or 601.157 as

1-26     appropriate; and

1-27                 (2)  files evidence of financial responsibility as

1-28     required by this chapter.

1-29           (b)  If the owner or operator chooses to establish financial

1-30     responsibility under Subsection (a)(2) by filing evidence of motor

1-31     vehicle liability insurance, the owner or operator must file a

1-32     certificate of insurance for a policy that has a policy period of

1-33     at least six months and for which the premium for the entire policy

1-34     period is paid in full.

1-35           (c)  Notwithstanding Section 601.085, coverage for a motor

1-36     vehicle under a motor vehicle liability policy for which a person

1-37     files with the department a certificate of insurance under

1-38     Subsection (b) may not be canceled unless:

1-39                 (1)  the person no longer owns the motor vehicle;

1-40                 (2)  the person dies;

1-41                 (3)  the person has a permanent incapacity that renders

1-42     the person unable to drive the motor vehicle; or

1-43                 (4)  the person surrenders to the department the

1-44     person's driver's license and the vehicle registration for the

1-45     motor vehicle.

1-46           SECTION 3.  (a) This Act takes effect September 1, 1997.

1-47           (b)  This Act applies only to a certificate of motor vehicle

1-48     liability insurance filed with the Texas Department of Public

1-49     Safety on or after January 1, 1998.  A certificate of motor vehicle

1-50     liability insurance filed with the Texas Department of Public

1-51     Safety before January 1, 1998, is governed by the law as it existed

1-52     immediately before the effective date of this Act, and that law is

1-53     continued in effect for that purpose.

1-54           SECTION 4.  The importance of this legislation and the

1-55     crowded condition of the calendars in both houses create an

1-56     emergency and an imperative public necessity that the

1-57     constitutional rule requiring bills to be read on three several

1-58     days in each house be suspended, and this rule is hereby suspended.

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