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.