75R12980 E
By Gutierrez, West H.B. No. 3453
Substitute the following for H.B. No. 3453:
By Bonnen C.S.H.B. No. 3453
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the method of providing evidence of financial
1-3 responsibility for vehicle operation; providing administrative and
1-4 criminal penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 601.053(b), Transportation Code, is
1-7 amended to read as follows:
1-8 (b) An operator who does not exhibit evidence of financial
1-9 responsibility under Subsection (a) or furnish electronic evidence
1-10 of financial responsibility as provided by Subchapter N is presumed
1-11 to have operated the vehicle in violation of Section 601.051.
1-12 SECTION 2. Chapter 601, Transportation Code, is amended by
1-13 adding Subchapter N to read as follows:
1-14 SUBCHAPTER N. ELECTRONIC EVIDENCE OF FINANCIAL RESPONSIBILITY
1-15 Sec. 601.441. ESTABLISHMENT OF SYSTEM. The department by
1-16 rule shall provide a system for furnishing evidence of financial
1-17 responsibility by use of a magnetic card or similar device that
1-18 allows electronic communication with a computerized database
1-19 containing information concerning motor vehicle insurance coverage.
1-20 The system must comply with the Driver's Privacy Protection Act of
1-21 1994 (18 U.S.C. Section 2721 et seq.).
1-22 Sec. 601.442. DESIGNATED AGENT. (a) The department may
1-23 contract with a person to act as the department's designated agent
1-24 under this subchapter. The contract may be awarded under a
2-1 competitive bid procedure as provided by department rule. The
2-2 contract may not obligate the department to pay more money than is
2-3 determined by the public safety director from fees collected under
2-4 Section 502.1715.
2-5 (b) The contract must require the designated agent to
2-6 provide, at the designated agent's expense, equipment necessary to
2-7 communicate with the computerized database established under this
2-8 subchapter for each:
2-9 (1) county tax assessor-collector's office or office
2-10 of the Texas Department of Transportation at which applications for
2-11 vehicle registration are accepted;
2-12 (2) motor vehicle inspection station;
2-13 (3) location at which applications for driver's
2-14 licenses are accepted; or
2-15 (4) other fixed location at which evidence of
2-16 financial responsibility is required by law to be presented.
2-17 (c) The public safety director shall determine an amount
2-18 that is necessary for the designated agent to implement this
2-19 subchapter, but that is not more than 15 cents a month for each
2-20 vehicle.
2-21 (d) A contract under this section may be awarded for a term
2-22 of five years and may be terminated during its term as provided by
2-23 the contract.
2-24 Sec. 601.443. INFORMATION PROVIDED BY INSURANCE COMPANY.
2-25 (a) Each insurance company providing motor vehicle liability
2-26 policies in this state shall provide the designated agent with
2-27 necessary information concerning each policy, including:
3-1 (1) the name of the insurance company;
3-2 (2) the insurance policy number;
3-3 (3) the effective date of the policy;
3-4 (4) the expiration date of the policy;
3-5 (5) the name, address, social security number, and
3-6 date of birth of each driver insured by the policy;
3-7 (6) the make, year, and vehicle identification number
3-8 of each vehicle covered by the policy;
3-9 (7) any information on the cancellation or nonrenewal
3-10 of the policy; and
3-11 (8) a statement that the coverage of the policy
3-12 complies with the minimum amount of liability insurance required by
3-13 this chapter.
3-14 (b) Each insurance company shall provide information
3-15 required by Subsection (a) to the designated agent in the
3-16 electronic data format prescribed by the public safety director
3-17 monthly or more frequently. Information provided by an insurance
3-18 company under this section remains the property of the insurance
3-19 company and may not be sold or made available except to enforce a
3-20 state law.
3-21 Sec. 601.444. INFORMATION PROVIDED BY DEPARTMENT. The
3-22 department shall provide the designated agent the following
3-23 information on each Texas driver's license holder:
3-24 (1) the holder's name, address, and date of birth;
3-25 (2) the driver's license number and expiration date;
3-26 and
3-27 (3) any information on suspension or revocation of the
4-1 driver's license.
4-2 Sec. 601.445. INFORMATION PROVIDED BY TEXAS DEPARTMENT OF
4-3 TRANSPORTATION. (a) The Texas Department of Transportation shall
4-4 provide the department or its designated agent the following
4-5 information for each vehicle to which this chapter applies, to the
4-6 extent the information is in the Texas Department of
4-7 Transportation's records:
4-8 (1) the owner's name, address, and social security
4-9 number;
4-10 (2) the vehicle identification number;
4-11 (3) the vehicle's description; and
4-12 (4) the date the certificate of title was issued for
4-13 the vehicle.
4-14 (b) The Texas Department of Transportation is not required
4-15 to provide information under this section about a vehicle
4-16 registered under Subchapter G, Chapter 502.
4-17 Sec. 601.446. FORM OF AND TIME FOR PROVIDING INFORMATION BY
4-18 AGENCIES; INFORMATION REMAINS PROPERTY OF AGENCIES. Each agency
4-19 shall provide the information required under Section 601.444 or
4-20 601.445 in an electronic data format. The department shall provide
4-21 the information under Section 601.444 not later than the seventh
4-22 day after the date the license is issued. The Texas Department of
4-23 Transportation shall provide the information under Section 601.445
4-24 and each change to information previously provided under that
4-25 section in a weekly report that includes the information for
4-26 registrations and changes occurring during the week preceding the
4-27 date of the report. Information provided by each agency under this
5-1 section remains the property of each agency and may not be sold or
5-2 made available except to enforce a state law.
5-3 Sec. 601.447. CERTAIN OTHER EVIDENCE INSUFFICIENT.
5-4 Beginning on the date that the department by rule designates as the
5-5 effective date of the system established under this subchapter, the
5-6 evidence of insurance described by Section 601.053(a)(1), (2), or
5-7 (3) is not sufficient evidence of financial responsibility for
5-8 purposes of this chapter except during the 21-day period after the
5-9 date of issuance of the insurance policy, standard proof of
5-10 liability insurance form, or insurance binder, as applicable.
5-11 Sec. 601.448. FEES ON POLICY HOLDER. (a) The insurance
5-12 company shall collect from the policy holder a one-time fee of $1
5-13 when the policy is issued for the card or device required for
5-14 insurance verification under the system.
5-15 (b) A fee under this section shall be remitted to the
5-16 designated agent not later than the third day of the month after
5-17 the month in which the fee is collected. The fee shall be retained
5-18 by the designated agent and used only to implement this subchapter.
5-19 Sec. 601.449. DURATION OF CARD OR DEVICE. A card or device
5-20 issued under this subchapter does not expire as long as the person
5-21 to whom the card or device is issued owns the vehicle, regardless
5-22 of whether the vehicle becomes covered by a policy issued by a
5-23 different insurance company. If the person to whom the card or
5-24 device is issued under this subchapter purchases a new vehicle, a
5-25 $1 fee shall be charged for insurance verification under this
5-26 system.
5-27 Sec. 601.450. LIABILITY OF CERTAIN OFFICERS, EMPLOYEES, AND
6-1 AGENTS. An officer or employee of an insurance company or officer,
6-2 employee, or agent of the department, or the Texas Department of
6-3 Transportation is not liable in a civil action for an act performed
6-4 in good faith in providing information in compliance with this
6-5 subchapter.
6-6 Sec. 601.451. VIOLATION; ADMINISTRATIVE SANCTIONS.
6-7 (a) Violation by an insurance company of this subchapter is a
6-8 ground for an administrative sanction by the commissioner of
6-9 insurance under Articles 1.10 and 1.10E, Insurance Code, including
6-10 the revocation of the company's certificate of authority to engage
6-11 in the business of insurance in this state. The commissioner of
6-12 insurance may assess an administrative penalty against that
6-13 insurance company in amount not to exceed $250 for each policy
6-14 involved for each day of noncompliance.
6-15 (b) Not later than the 10th day after the date on which the
6-16 commissioner determines a violation has occurred, the commissioner
6-17 shall send by certified mail a notice of the determination to the
6-18 insurance company involved with a statement of the right of the
6-19 insurance company to a hearing relating to the alleged violation
6-20 and the amount of the penalty.
6-21 (c) Not later than the 20th day after the date on which the
6-22 report is sent, the insurance company may make a written request
6-23 for a hearing or may remit the amount of the administrative penalty
6-24 to the Texas Department of Insurance. Failure to request a hearing
6-25 or to remit the amount of the administrative penalty within the
6-26 time provided by this subsection waives the right to a hearing
6-27 under this subsection. Not later than the 30th day after the date
7-1 on which the notice is received, the insurance company charged
7-2 shall pay the administrative penalty in full or, if the insurance
7-3 company wishes to contest the amount of the penalty or the fact of
7-4 the violation, forward the amount of the penalty assessed to the
7-5 Texas Department of Insurance for deposit in an escrow account.
7-6 (d) If, after the hearing or judicial review, it is
7-7 determined that a violation did not occur or that the amount of the
7-8 penalty should be reduced, the Texas Department of Insurance shall
7-9 return the appropriate amount to the insurance company charged with
7-10 the violation not later than the 30th day after the date on which
7-11 the determination becomes final.
7-12 (e) Failure to remit the amount of the administrative
7-13 penalty as provided by this section waives the right to contest
7-14 the violation or the amount of the penalty.
7-15 Sec. 601.452. VIOLATION; CRIMINAL PENALTY. (a) A person
7-16 commits an offense if the person knowingly releases information
7-17 maintained by the department or its designated agent under this
7-18 subchapter except to enforce a state law.
7-19 (b) An offense under this section is a Class A misdemeanor.
7-20 SECTION 3. Section 502.104, Transportation Code, is amended
7-21 to read as follows:
7-22 Sec. 502.104. DISPOSITION OF CERTAIN SPECIAL FEES. Each
7-23 Monday a county assessor-collector shall send to the department an
7-24 amount equal to collections for the preceding week for:
7-25 (1) each transfer fee collected under Section 502.175;
7-26 and
7-27 (2) each fee collected under Section 502.169(b),
8-1 502.1715, or 502.279.
8-2 SECTION 4. Subchapter D, Chapter 502, Transportation Code,
8-3 is amended by adding Sections 502.1515 and 502.1715 to read as
8-4 follows:
8-5 Sec. 502.1515. APPLICANT'S SOCIAL SECURITY NUMBER. (a) The
8-6 department shall require an applicant for registration to provide
8-7 the applicant's social security number to the department.
8-8 (b) The department shall enter the applicant's social
8-9 security number in the department's electronic database but not
8-10 print the number on the registration receipt.
8-11 (c) This section applies only in a county in which the
8-12 department's automated registration and title system has been
8-13 implemented.
8-14 Sec. 502.1715. ADDITIONAL FEE FOR EVIDENCE OF FINANCIAL
8-15 RESPONSIBILITY SYSTEM. (a) In addition to other fees imposed for
8-16 registration of a motor vehicle, at the time of application for
8-17 registration or renewal of registration of a motor vehicle for
8-18 which the owner is required to submit evidence of financial
8-19 responsibility under Section 502.153, the applicant shall pay a fee
8-20 of $3.
8-21 (b) Fees collected under this section shall be deposited to
8-22 the credit of the state highway fund. The department may use money
8-23 appropriated from the state highway fund that represents those fees
8-24 to administer Subchapter N, Chapter 601, and to reimburse the
8-25 Department of Public Safety for its expenses in administering that
8-26 subchapter.
8-27 (c) The department and the Department of Public Safety shall
9-1 adopt rules and develop forms necessary to administer this section.
9-2 SECTION 5. (a) Not later than September 1, 1998, the
9-3 Department of Public Safety shall contract with an entity to serve
9-4 as the designated agent under Subchapter N, Chapter 601,
9-5 Transportation Code, as added by this Act, and adopt rules
9-6 necessary to implement that subchapter.
9-7 (b) An insurance company is not required to provide
9-8 information under Section 601.443, Transportation Code, as added by
9-9 this Act, before September 1, 1998.
9-10 SECTION 6. Sections 502.1515 and 502.1715, Transportation
9-11 Code, as added by this Act, apply only to a registration issued or
9-12 renewed on or after the effective date of this Act.
9-13 SECTION 7. This Act takes effect September 1, 1997.
9-14 SECTION 8. The importance of this legislation and the
9-15 crowded condition of the calendars in both houses create an
9-16 emergency and an imperative public necessity that the
9-17 constitutional rule requiring bills to be read on three several
9-18 days in each house be suspended, and this rule is hereby suspended.