By Thompson                                     H.B. No. 1041

      75R4699 DLF-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to identification of uninsured motorists; providing

 1-3     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.  IDENTIFICATION OF UNINSURED MOTORISTS;

 1-8                       INSURER REPORTING REQUIREMENTS 

 1-9           Sec. 601.501.  INSURANCE COMPANY REPORT.  (a)  An insurance

1-10     company that writes motor vehicle liability insurance policies

1-11     shall report to the department each motor vehicle insurance policy

1-12     issued by the company to cover a personal passenger vehicle that

1-13     lapses or otherwise terminates for any reason.

1-14           (b)  The report must be made not later than the seventh day

1-15     after the date on which coverage under the policy terminated and

1-16     must include:

1-17                 (1)  the name, date of birth, and driver's license

1-18     number of each insured owner or operator;

1-19                 (2)  the address of the named insured; and

1-20                 (3)  the make, year, and vehicle identification number

1-21     of each private passenger motor vehicle insured under the policy.

1-22           (c)  The insurance company shall provide the report in a

1-23     computer readable format as required by department rule.

1-24           (d)  An insurance company that violates this section is

 2-1     subject to an administrative penalty under Article 1.10E, Insurance

 2-2     Code.

 2-3           Sec. 601.502. NOTIFICATION TO MOTORIST.  (a)  If the

 2-4     department receives a report under Section 601.501 that indicates

 2-5     that a registered private passenger motor vehicle that is subject

 2-6     to the requirements of this chapter is not covered by a policy of

 2-7     motor vehicle liability insurance, the department shall notify the

 2-8     registered owner of the motor vehicle of that fact and of the

 2-9     requirements of this section.

2-10           (b)  Not later than the 45th day after the date the notice is

2-11     mailed, the registered owner of the motor vehicle shall provide to

2-12     the department:

2-13                 (1)  evidence of financial responsibility that

2-14     satisfies the requirements of Section 601.051; or

2-15                 (2)  a sworn statement, signed by the person, that:

2-16                       (A)  the motor vehicle is not a motor vehicle for

2-17     which evidence of financial responsibility is required under this

2-18     chapter; or

2-19                       (B)  the motor vehicle is no longer owned by the

2-20     person.

2-21           Sec. 601.503.  SUSPENSION OF DRIVER'S LICENSE OR VEHICLE

2-22     REGISTRATION.  (a)  The department, after notice and hearing, may

2-23     suspend the driver's license or vehicle registration of a person

2-24     who violates Section 601.502(b).  The department may not suspend

2-25     the license or registration if the person:

2-26                 (1)  provides to the department evidence of financial

2-27     responsibility that satisfies the requirements of Section 601.051;

 3-1     or

 3-2                 (2)  demonstrates, to the satisfaction of the

 3-3     department, that:

 3-4                       (A)  the motor vehicle is not a motor vehicle for

 3-5     which evidence of financial responsibility is required under this

 3-6     chapter; or

 3-7                       (B)  the motor vehicle is no longer owned by the

 3-8     person.

 3-9           (b)  Suspension of a driver's license or vehicle registration

3-10     under this section is subject to Subchapter L.  The license or

3-11     registration may not be reinstated unless the person complies with

3-12     Section 601.376.

3-13           Sec. 601.504.  RULES.  The department may adopt rules as

3-14     necessary to implement this subchapter.  The department shall

3-15     consult with the Texas Department of Transportation with respect to

3-16     rules affecting the suspension of vehicle registrations.

3-17           SECTION 2.  This Act takes effect September 1, 1997.

3-18           SECTION 3.  An insurance company is not required to make a

3-19     report under Section 601.501, Transportation Code, as added by this

3-20     Act, before January 1, 1998.

3-21           SECTION 4.  The importance of this legislation and the

3-22     crowded condition of the calendars in both houses create an

3-23     emergency and an imperative public necessity that the

3-24     constitutional rule requiring bills to be read on three several

3-25     days in each house be suspended, and this rule is hereby suspended.