1-1 By: Garcia (Senate Sponsor - Lucio) H.B. No. 1166
1-2 (In the Senate - Received from the House May 7, 1997;
1-3 May 8, 1997, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 15, 1997, reported favorably by
1-5 the following vote: Yeas 7, Nays 3; May 15, 1997, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to municipal regulations concerning insurance for
1-10 taxicabs.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 215.004, Local Government Code, is
1-13 amended by redesignating Subsection (c) as Subsection (f) and
1-14 amending that subsection, and by adding new Subsections (c)-(e) to
1-15 read as follows:
1-16 (c) Insurance required for a taxicab under an ordinance
1-17 adopted under Subsection (b) must be obtained from a reliable
1-18 insurance company authorized to do business in this state, unless
1-19 the taxicab transportation service is self-insured in accordance
1-20 with applicable state statutes. A municipality may find that an
1-21 insurance company does not comply with an ordinance adopted under
1-22 Subsection (b) only if:
1-23 (1) the commissioner of insurance has issued an order
1-24 finding that the company is in bankruptcy in whole or in part, or
1-25 is in a hazardous financial condition as described by Article 1.32,
1-26 Insurance Code; or
1-27 (2) the commissioner of insurance has issued an order
1-28 placing the company in a state of supervision, conservation, or
1-29 ancillary conservation under Article 21.28-A, Insurance Code, or
1-30 the appropriate authority in the company's state of domicile has
1-31 taken a similar action.
1-32 (d) A municipality may require a written certification that,
1-33 for any portion of insurance required for a taxicab under an
1-34 ordinance adopted under Subsection (b) in excess of 10 percent of
1-35 the insurance company's capital and surplus, the insurance company
1-36 has reinsurance for which credit may be taken under Article 5.75-1,
1-37 Insurance Code.
1-38 (e) Except as provided by Subsections (c) and (d), a
1-39 municipality may not regulate, under this section or other general
1-40 law, passenger taxicab transportation services with respect to the
1-41 insurance company insuring a taxicab in the municipality.
1-42 (f) In regulating passenger taxicab transportation services
1-43 under this section, a municipality is performing a governmental
1-44 function. Except as limited by Subsection (c), a [A] municipality
1-45 may carry out the provisions of this section to the extent the
1-46 governing body of the municipality considers it necessary or
1-47 appropriate.
1-48 SECTION 2. This Act takes effect September 1, 1997.
1-49 SECTION 3. The importance of this legislation and the
1-50 crowded condition of the calendars in both houses create an
1-51 emergency and an imperative public necessity that the
1-52 constitutional rule requiring bills to be read on three several
1-53 days in each house be suspended, and this rule is hereby suspended.
1-54 * * * * *