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.