By Puente                                        H.B. No. 948

      75R1959 SAW-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to maintenance of information about motor vehicle

 1-3     liability insurance coverage; providing administrative 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.  INFORMATION MAINTAINED BY THE DEPARTMENT ABOUT MOTOR

 1-8       VEHICLE LIABILITY INSURANCE COVERAGE; ADMINISTRATIVE PENALTIES 

 1-9           Sec. 601.501.  PROVISION OF  INFORMATION TO THE DEPARTMENT BY

1-10     INSURANCE COMPANIES.  An insurance company authorized to write

1-11     motor vehicle liability insurance in this state that issues a motor

1-12     vehicle liability insurance policy to a person who is required to

1-13     establish financial responsibility under Subchapter C and who is

1-14     the holder of a Texas driver's license shall furnish to the

1-15     department at time intervals determined by the department

1-16     information about the policy, including:

1-17                 (1)  the name of the insurance company;

1-18                 (2)  the insurance policy number;

1-19                 (3)  the effective date of the policy;

1-20                 (4)  the expiration date of the policy;

1-21                 (5)  the name, address, and driver's license number of

1-22     each driver insured by the policy;

1-23                 (6)  the make, model, and vehicle identification number

1-24     of each vehicle covered by the policy;

 2-1                 (7)  the policy limits or a statement that the coverage

 2-2     of the policy complies with the minimum amount of liability

 2-3     insurance required by Subchapter D; and

 2-4                 (8)  whether the insurance company has provided to the

 2-5     policyholder a certificate of insurance for filing with the

 2-6     department as evidence of insurance.

 2-7           Sec. 601.502.  NOTICE OF POLICY TERMINATION.  An insurance

 2-8     company shall notify the department within a period determined by

 2-9     the department of the termination of a motor vehicle liability

2-10     insurance policy described by Section 601.501 issued by the

2-11     insurance company.

2-12           Sec. 601.503.  COMPUTER DATABASE.  The department shall

2-13     develop and maintain a computer database to manage the motor

2-14     vehicle liability insurance coverage information provided by

2-15     insurance companies under this subchapter.

2-16           Sec. 601.504.  NOTICE OF LICENSE SUSPENSION FOR POLICY

2-17     TERMINATION.  (a)  On notification from an insurance company that a

2-18     person's motor vehicle liability policy has terminated, the

2-19     department shall check the department database to determine whether

2-20     another policy replaces the terminated policy.

2-21           (b)  If the department has no record of a replacement policy,

2-22     the department shall notify the person that the person's driver's

2-23     license is suspended on the 20th day after the date on which the

2-24     notice was personally served or mailed unless, before that date,

2-25     the person files with the department:

2-26                 (1)  evidence of financial responsibility that complies

2-27     with Subchapter D or E;

 3-1                 (2)  a sworn statement, as described in Section

 3-2     521.143, that the person does not own a motor vehicle for which

 3-3     evidence of financial responsibility is required under this

 3-4     chapter; or

 3-5                 (3)  makes a written request for a hearing.

 3-6           (c)  If the person requests a hearing under this section, the

 3-7     department shall set a time and a place for the hearing.  The

 3-8     hearing must be held in the person's county of residence.  The

 3-9     department shall suspend the person's driver's license unless the

3-10     person at the hearing:

3-11                 (1)  provides evidence of financial responsibility that

3-12     complies with Subchapter D or E; or

3-13                 (2)  provides a sworn statement, as described in

3-14     Section 521.143, that the person does not own a motor vehicle for

3-15     which evidence of financial responsibility is required under this

3-16     chapter.

3-17           (d)  The department shall notify the license holder if the

3-18     department suspends the license under this subchapter.

3-19           Sec. 601.505.  DURATION OF SUSPENSION FOR POLICY TERMINATION.

3-20     The department may not reinstate a driver's license suspended under

3-21     this subchapter, renew a driver's license suspended under this

3-22     subchapter, or issue a new license to the holder of a license

3-23     suspended under this subchapter until the holder of the suspended

3-24     license:

3-25                 (1)  files with the department:

3-26                       (A)  evidence of financial responsibility that

3-27     complies with Subchapter D or E; or

 4-1                       (B)  a sworn statement, as described in Section

 4-2     521.143, that the person does not own a motor vehicle for which

 4-3     evidence of financial responsibility is required under this

 4-4     chapter; and

 4-5                 (2)  pays to the department a reinstatement fee as

 4-6     required by Section 601.376.

 4-7           Sec. 601.506.  FUNDING.  Each insurance company subject to

 4-8     this subchapter shall collect from the policyholder of a motor

 4-9     vehicle insurance liability policy subject to this subchapter a fee

4-10     of $1 for each 12-month policy period for each motor vehicle

4-11     insured under the policy.  The insurance company shall remit the

4-12     fee to the comptroller in a form and manner prescribed by the

4-13     comptroller for deposit in the general revenue fund.  The

4-14     comptroller shall credit the fee to an account in the state

4-15     treasury.  Money in the account may be used only for the

4-16     administration of this subchapter.

4-17           Sec. 601.507.  RULES.  The department may adopt rules to

4-18     implement this subchapter.

4-19           Sec. 601.508.  ADMINISTRATIVE PENALTIES FOR INSURANCE

4-20     COMPANY.  An insurance company that violates this subchapter is

4-21     subject to administrative penalties under Article 1.10E, Insurance

4-22     Code.

4-23           SECTION 2.  (a)  This Act takes effect September 1, 1997.

4-24           (b)  The fee imposed under Section 601.506, Transportation

4-25     Code, as added by this Act, applies only to an insurance policy

4-26     that is delivered, issued for delivery, or renewed on or after

4-27     January 1, 1998.

 5-1           (c)  An insurance company shall provide to the Department of

 5-2     Public Safety information about motor vehicle liability insurance

 5-3     coverage required by Sections 601.501 and 601.502, Transportation

 5-4     Code, as added by this Act, beginning January 1, 1998.

 5-5           SECTION 3.  The importance of this legislation and the

 5-6     crowded condition of the calendars in both houses create an

 5-7     emergency and an imperative public necessity that the

 5-8     constitutional rule requiring bills to be read on three several

 5-9     days in each house be suspended, and this rule is hereby suspended.