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.

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