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.