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.