Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Gutierrez 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 of
1-16 Public Safety by rule shall provide a system for furnishing
1-17 evidence of financial responsibility by use of a magnetic card or
1-18 similar device that allows electronic communication with a
1-19 computerized database containing information concerning motor
1-20 vehicle insurance coverage. The system must comply with the
1-21 Driver's Privacy Protection Act of 1994 (18 U.S.C. Section 2721 et
1-22 seq.).
1-23 Sec. 601.442. DESIGNATED AGENT. (a) The department shall
1-24 contract with a person to act as the department's designated agent
2-1 under this subchapter. The contract may be awarded under a
2-2 competitive bid procedure in accordance with department rule. The
2-3 contract may not obligate the department to pay more money than is
2-4 determined by the public safety director from fees collected under
2-5 Section 502.1715.
2-6 (b) The public safety director shall determine an amount
2-7 that is necessary for the designated agent to implement this
2-8 subchapter, but that is not more than 15 cents a month for each
2-9 vehicle.
2-10 (c) A contract under this section may be awarded for a term
2-11 of five years, and may be terminated during its term as provided by
2-12 the contract.
2-13 Sec. 601.443. INFORMATION PROVIDED BY INSURANCE COMPANY.
2-14 (a) Each insurance company providing motor vehicle liability
2-15 policies in this state shall provide the designated agent with
2-16 necessary information concerning each policy, including:
2-17 (1) the name of the insurance company;
2-18 (2) the insurance policy number;
2-19 (3) the effective date of the policy;
2-20 (4) the expiration date of the policy;
2-21 (5) the name, address, social security number, and
2-22 date of birth of each driver insured by the policy;
2-23 (6) the make, year, and vehicle identification number
2-24 of each vehicle covered by the policy;
2-25 (7) any information on the cancellation or nonrenewal
2-26 of the policy; and
2-27 (8) a statement that the coverage of the policy
2-28 complies with the minimum amount of liability insurance required by
2-29 this chapter.
2-30 (b) Each insurance company shall provide information
3-1 required by Subsection (a) to the designated agent in the
3-2 electronic data format prescribed by the public safety director
3-3 monthly or more frequently. Information provided by an insurance
3-4 company under this section remains the property of the insurance
3-5 company and may not be sold or made available except to enforce a
3-6 state law.
3-7 Sec. 601.444. INFORMATION PROVIDED BY DEPARTMENT. The
3-8 department shall provide the designated agent the following
3-9 information on each Texas driver's license holder:
3-10 (1) the holder's name, address, and date of birth;
3-11 (2) the driver's license number and expiration date;
3-12 and
3-13 (3) any information on suspension or revocation of the
3-14 driver's license.
3-15 Sec. 601.445. INFORMATION PROVIDED BY TEXAS DEPARTMENT OF
3-16 TRANSPORTATION. (a) The Texas Department of Transportation shall
3-17 provide the Department of Public Safety or its designated agent the
3-18 following information for each vehicle to which this chapter
3-19 applies, to the extent the information is in the Texas Department
3-20 of Transportation's records:
3-21 (1) the owner's name, address, and social security
3-22 number;
3-23 (2) the vehicle identification number;
3-24 (3) the vehicle's description; and
3-25 (4) the date the certificate of title was issued for
3-26 the vehicle.
3-27 (b) The Texas Department of Transportation is not required
3-28 to provide information under this section about a vehicle
3-29 registered under Subchapter G, Chapter 502.
3-30 Sec. 601.446. FORM OF AND TIME FOR PROVIDING INFORMATION BY
4-1 AGENCIES. Each agency shall provide the information required under
4-2 Section 601.444 or 601.445 in an electronic data format. The
4-3 department shall provide the information under Section 601.444 not
4-4 later than the seventh day after the date the license is issued.
4-5 The Texas Department of Transportation shall provide the
4-6 information under Section 601.445 and each change to information
4-7 previously provided under that section in a weekly report that
4-8 includes the information for registrations and changes occurring
4-9 during the week preceding the date of the report.
4-10 Sec. 601.447. CERTAIN OTHER EVIDENCE INSUFFICIENT.
4-11 Beginning on the date that the department by rule designates as the
4-12 effective date of the system established under this subchapter, the
4-13 evidence of insurance described by Section 601.053(a)(1) is not
4-14 sufficient evidence of financial responsibility for purposes of
4-15 this chapter except during the 21-day period after the date of
4-16 issuance of the insurance policy, standard proof of liability
4-17 insurance form, or insurance binder, as applicable.
4-18 Sec. 601.448. FEES ON POLICY HOLDER. (a) The insurance
4-19 company shall collect from the policy holder a one-time fee of $1
4-20 when the policy is issued for the card or device required for
4-21 insurance verification under the system.
4-22 (b) A fee under this section shall be remitted to the
4-23 designated agent not later than the third day of the month after
4-24 the month in which the fee is collected. The fee shall be retained
4-25 by the designated agent and used only to implement this subchapter.
4-26 Sec. 601.449. DURATION OF CARD OR DEVICE. A card or device
4-27 issued under this subchapter shall not expire as long as the person
4-28 to whom the card or device is issued owns the vehicle, regardless
4-29 of whether the vehicle becomes covered by a policy issued by a
4-30 different insurance company. If the person to whom the card or
5-1 device is issued under this subchapter purchases a new vehicle, a
5-2 $1 fee will be charged for insurance verification under this
5-3 system.
5-4 Sec. 601.450. LIABILITY OF CERTAIN OFFICER, EMPLOYEES, AND
5-5 AGENTS. An officer or employee of an insurance company or officer,
5-6 employee, or agent of the department, or the Texas Department of
5-7 Transportation is not liable in a civil action for an act performed
5-8 in good faith in providing information in compliance with this
5-9 subchapter.
5-10 Sec. 601.451. VIOLATION; ADMINISTRATIVE SANCTIONS.
5-11 (a) Violation by an insurance company of this subchapter is a
5-12 ground for an administrative sanction by the commissioner of
5-13 insurance under Articles 1.10 and 1.10E, Insurance Code, including
5-14 the revocation of the company's certificate of authority to engage
5-15 in the business of insurance in this state. The commissioner of
5-16 insurance may assess an administrative penalty against that
5-17 insurance company in amount not to exceed $250 for each policy
5-18 involved for each day of noncompliance.
5-19 (b) Not later than the 10th day after the date on which the
5-20 commissioner determines a violation has occurred, the commissioner
5-21 shall send by certified mail a notice of the determination to the
5-22 insurance company involved with a statement of the right of the
5-23 insurance company to a hearing relating to the alleged violation
5-24 and the amount of the penalty.
5-25 (c) Not later than the 20th day after the date on which the
5-26 report is sent, the insurance company may make a written request
5-27 for a hearing or may remit the amount of the administrative penalty
5-28 to the Texas Department of Insurance. Failure to request a hearing
5-29 or to remit the amount of the administrative penalty within the
5-30 time provided by this subsection waives the right to a hearing
6-1 under this subsection. Not later than the 30th day after the date
6-2 on which the notice is received, the insurance company charged
6-3 shall pay the administrative penalty in full or, if the insurance
6-4 company wishes to contest the amount of the penalty or the fact of
6-5 the violation, forward the amount of the penalty assessed to the
6-6 Texas Department of Insurance for deposit in an escrow account.
6-7 (d) If, after the hearing or judicial review, it is
6-8 determined that a violation did not occur or that the amount of the
6-9 penalty should be reduced, the Texas Department of Insurance shall
6-10 return the appropriate amount to the insurance company charged with
6-11 the violation not later than the 30th day after the date on which
6-12 the determination becomes final.
6-13 (e) Failure to remit the amount of the administrative
6-14 penalty as provided by this section waives the right to contest
6-15 the violation or the amount of the penalty.
6-16 Sec. 601.452. VIOLATION; CRIMINAL PENALTY. (a) A person
6-17 commits an offense if the person knowingly releases information
6-18 maintained by the department or its designated agent under this
6-19 subchapter except to enforce a state law.
6-20 (b) An offense under this section is a Class A misdemeanor.
6-21 SECTION 3. Section 502.104, Transportation Code, is amended
6-22 to read as follows:
6-23 Sec. 502.104. DISPOSITION OF CERTAIN SPECIAL FEES. Each
6-24 Monday a county assessor-collector shall send to the department an
6-25 amount equal to collections for the preceding week for:
6-26 (1) each transfer fee collected under Section 502.175;
6-27 and
6-28 (2) each fee collected under Section 502.169(b),
6-29 502.1715, or 502.279.
6-30 SECTION 4. Subchapter D, Chapter 502, Transportation Code,
7-1 is amended by adding Sections 502.1515 and 502.1715 to read as
7-2 follows:
7-3 Sec. 502.1515. APPLICANT'S SOCIAL SECURITY NUMBER. (a) The
7-4 Department of Transportation shall require an applicant for
7-5 registration to provide the applicant's social security number to
7-6 the department.
7-7 (b) The department shall enter the applicant's social
7-8 security number in the department's electronic database, but not
7-9 print the number on the registration receipt.
7-10 (c) This section applies only in a county in which the
7-11 department's automated registration and title system has been
7-12 implemented.
7-13 Sec. 502.1715. ADDITIONAL FEE FOR EVIDENCE OF FINANCIAL
7-14 RESPONSIBILITY SYSTEM. (a) In addition to other fees imposed for
7-15 registration of a motor vehicle, at the time of application for
7-16 registration or renewal of registration of a motor vehicle for
7-17 which the owner is required to submit evidence of financial
7-18 responsibility under Section 502.153, the applicant shall pay a fee
7-19 of $3.
7-20 (b) Fees collected under this section shall be deposited to
7-21 the credit of the state highway fund. The Department of
7-22 Transportation may use money appropriated from the state highway
7-23 fund that represents those fees to administer Subchapter N, Chapter
7-24 601, and to reimburse the Department of Public Safety for its
7-25 expenses in administering that subchapter.
7-26 (c) The Department of Transportation and the Department of
7-27 Public Safety shall adopt rules and develop forms necessary to
7-28 administer this section.
7-29 SECTION 5. (a) Not later than September 1, 1998, the
7-30 Department of Public Safety shall contract with an entity to serve
8-1 as the designated agent under Subchapter N, Chapter 601,
8-2 Transportation Code, as added by this Act, and adopt rules
8-3 necessary to implement that subchapter.
8-4 (b) An insurance company is not required to provide
8-5 information under Section 601.443, Transportation Code, as added by
8-6 this Act, before September 1, 1998.
8-7 SECTION 6. Sections 502.1515 and 502.1715, Transportation
8-8 Code, as added by this Act, apply only to a registration issued or
8-9 renewed on or after the effective date of this Act.
8-10 SECTION 7. This Act takes effect September 1, 1997.
8-11 SECTION 8. The importance of this legislation and the
8-12 crowded condition of the calendars in both houses create an
8-13 emergency and an imperative public necessity that the
8-14 constitutional rule requiring bills to be read on three several
8-15 days in each house be suspended, and this rule is hereby suspended.