75R12001 ESH-F
By Garcia H.B. No. 1166
Substitute the following for H.B. No. 1166:
By Garcia C.S.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 a hazardous financial condition as
1-18 described by Article 1.32, Insurance Code; or
1-19 (2) the commissioner of insurance has issued an order
1-20 placing the company in a state of supervision, conservation, or
1-21 ancillary conservation under Article 21.28-A, Insurance Code, or
1-22 the appropriate authority in the company's state of domicile has
1-23 taken a similar action.
1-24 (d) A municipality may require a written certification that,
2-1 for any portion of insurance required for a taxicab under an
2-2 ordinance adopted under Subsection (b) in excess of 10 percent of
2-3 the insurance company's capital and surplus, the insurance company
2-4 has reinsurance for which credit may be taken under Article 5.75-1,
2-5 Insurance Code.
2-6 (e) Except as provided by Subsections (c) and (d), a
2-7 municipality may not regulate, under this section or other general
2-8 law, passenger taxicab transportation services with respect to the
2-9 insurance company insuring a taxicab in the municipality.
2-10 (f) In regulating passenger taxicab transportation services
2-11 under this section, a municipality is performing a governmental
2-12 function. Except as limited by Subsection (c), a [A] municipality
2-13 may carry out the provisions of this section to the extent the
2-14 governing body of the municipality considers it necessary or
2-15 appropriate.
2-16 SECTION 2. This Act takes effect September 1, 1997.
2-17 SECTION 3. The importance of this legislation and the
2-18 crowded condition of the calendars in both houses create an
2-19 emergency and an imperative public necessity that the
2-20 constitutional rule requiring bills to be read on three several
2-21 days in each house be suspended, and this rule is hereby suspended.