By Garcia                                       H.B. No. 1166

      75R5794 ESH-D                           

                                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 (d) and

 1-7     amending that subsection, and by adding a new Subsection (c), to

 1-8     read as follows:

 1-9           (c)  Insurance required for a taxicab by a municipality under

1-10     Subsection (b) must be obtained from a reliable insurance company

1-11     authorized to do business in this state and in good standing with

1-12     the Texas Department of Insurance.  For purposes of this section,

1-13     an insurance company is considered reliable if the company is not

1-14     in a hazardous financial condition as described by Article 1.32,

1-15     Insurance Code.  Except as provided by this subsection, a

1-16     municipality may not regulate an insurance company insuring a

1-17     taxicab in the municipality under this section or other general

1-18     law.

1-19           (d)  In regulating passenger taxicab transportation services

1-20     under this section, a municipality is performing a governmental

1-21     function.  Except as limited by Subsection (c), a [A] municipality

1-22     may carry out the provisions of this section to the extent the

1-23     governing body of the municipality considers it necessary or

1-24     appropriate.

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

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

 2-3     crowded condition of the calendars in both houses create an

 2-4     emergency and an imperative public necessity that the

 2-5     constitutional rule requiring bills to be read on three several

 2-6     days in each house be suspended, and this rule is hereby suspended.