By Garcia                                             H.B. No. 1166

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to municipal regulations concerning insurance for

 1-3     taxicabs.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 215.004, Local Government Code, is

 1-6     amended by redesignating Subsection (c) as Subsection (f) and

 1-7     amending that subsection, and by adding new Subsections (c)-(e) to

 1-8     read as follows:

 1-9           (c)  Insurance required for a taxicab under an ordinance

1-10     adopted under Subsection (b) must be obtained from a reliable

1-11     insurance company authorized to do business in this state, unless

1-12     the taxicab transportation service is self-insured in accordance

1-13     with applicable state statutes.  A municipality may find that an

1-14     insurance company does not comply with an ordinance adopted under

1-15     Subsection (b) only if:

1-16                 (1)  the commissioner of insurance has issued an order

1-17     finding that the company is in bankruptcy in whole or in part, or

1-18     is in a hazardous financial condition as described by Article 1.32,

1-19     Insurance Code; or

1-20                 (2)  the commissioner of insurance has issued an order

1-21     placing the company in a state of supervision, conservation, or

1-22     ancillary conservation under Article 21.28-A, Insurance Code, or

1-23     the appropriate authority in the company's state of domicile has

1-24     taken a similar action.

 2-1           (d)  A municipality may require a written certification that,

 2-2     for any portion of insurance required for a taxicab under an

 2-3     ordinance adopted under Subsection (b) in excess of 10 percent of

 2-4     the insurance company's capital and surplus, the insurance company

 2-5     has reinsurance for which credit may be taken under Article 5.75-1,

 2-6     Insurance Code.

 2-7           (e)  Except as provided by Subsections (c) and (d), a

 2-8     municipality may not regulate, under this section or other general

 2-9     law, passenger taxicab transportation services with respect to the

2-10     insurance company insuring a taxicab in the municipality.

2-11           (f)  In regulating passenger taxicab transportation services

2-12     under this section, a municipality is performing a governmental

2-13     function.  Except as limited by Subsection (c), a [A] municipality

2-14     may carry out the provisions of this section to the extent the

2-15     governing body of the municipality considers it necessary or

2-16     appropriate.

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

2-18           SECTION 3.  The importance of this legislation and the

2-19     crowded condition of the calendars in both houses create an

2-20     emergency and an imperative public necessity that the

2-21     constitutional rule requiring bills to be read on three several

2-22     days in each house be suspended, and this rule is hereby suspended.