By: Bivins S.B. No. 1932
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to maintenance of information about motor vehicle
1-2 liability insurance coverage; providing administrative penalties.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 601, Transportation Code, is amended by
1-5 adding Subchapter N to read as follows:
1-6 SUBCHAPTER N. UNINSURED MOTORIST IDENTIFICATION DATABASE
1-7 PROGRAM; INSURER REPORTING REQUIREMENTS
1-8 Sec. 601.501. DEFINITIONS. In this subchapter:
1-9 (1) "Database" means the uninsured motorist
1-10 identification database established under this subchapter.
1-11 (2) "Designated agent" means the person administering
1-12 the program under contract with the department.
1-13 (3) "Program" means the uninsured motorist
1-14 identification database program established under this subchapter.
1-15 Sec. 601.502. UNINSURED MOTORIST IDENTIFICATION DATABASE
1-16 PROGRAM. The department shall establish an uninsured motorist
1-17 identification database program under this subchapter. The program
1-18 shall be administered by the designated agent under the direction
1-19 of the department.
1-20 Sec. 601.503. DESIGNATED AGENT. (a) The department shall
1-21 contract with a person to act as the department's designated agent
2-1 under this subchapter. The contract shall 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 appropriated to the department from fees collected under Section
2-5 502.1695.
2-6 (b) A contract awarded under this section must be awarded
2-7 for a term of five years, subject to the constitutional limitation
2-8 on appropriation of funds. The contract may be terminated during
2-9 its term as provided by the contract.
2-10 (c) The designated agent is not liable for damages arising
2-11 from the good faith execution of the designated agent's duties
2-12 under this subchapter.
2-13 (d) The department may directly administer the program under
2-14 this subchapter if, after considering the bids submitted under
2-15 Subsection (a), the department finds that contracting with a
2-16 designated agent is not cost-effective. If the department
2-17 administers the program, the department shall perform each duty
2-18 otherwise imposed on the designated agent.
2-19 Sec. 601.504. DATABASE (a) The designated agent shall
2-20 develop and maintain a computer database to manage and provide
2-21 access to the information provided under Section 601.505.
2-22 (b) The database must be developed and maintained in
2-23 accordance with guidelines adopted by the department. The
2-24 guidelines must permit efficient access to the database by state
2-25 and local law enforcement agencies.
3-1 (c) Information in the database is confidential and not
3-2 subject to disclosure under Chapter 552, Government Code, except as
3-3 provided by this subsection. Information in the database may be
3-4 disclosed to a state or local governmental agency to enforce this
3-5 chapter. Information from the database that is included in an
3-6 accident report prepared by a peace officer is subject to release
3-7 under Section 550.065. On request, the designated agent may
3-8 disclose whether or not a person is a named insured on a policy of
3-9 motor vehicle insurance to:
3-10 (1) that person;
3-11 (2) the person's parent, managing or possessory
3-12 conservator, or court-appointed custodian, if the person is an
3-13 unemancipated minor;
3-14 (3) the legal guardian of the person;
3-15 (4) another person who holds a power of attorney from
3-16 the person; and
3-17 (5) another person who holds a document authorizing
3-18 release of the information that is signed by the person with
3-19 respect to whom the information is sought, notarized, and dated not
3-20 earlier than the 90th day before the date on which the information
3-21 is sought.
3-22 (d) A person who knowingly releases or discloses information
3-23 from the database in violation of this section commits an offense.
3-24 An offense under this subsection is a Class A misdemeanor.
3-25 Sec. 601.505. PROVISION OF INFORMATION TO THE DESIGNATED
4-1 AGENT BY INSURANCE COMPANIES. (a) An insurance company authorized
4-2 to write motor vehicle liability insurance in this state that
4-3 issues a motor vehicle liability insurance policy to a person who
4-4 is required to establish financial responsibility under Subchapter
4-5 C and who is the holder of a Texas driver's license shall furnish
4-6 to the designated agent at time intervals determined by the
4-7 department information about the policy, including:
4-8 (1) the name of the insurance company;
4-9 (2) the insurance policy number;
4-10 (3) the effective date of the policy;
4-11 (4) the expiration date of the policy;
4-12 (5) the name, date of birth, address, and driver's
4-13 license number of each driver insured by the policy;
4-14 (6) the make, model, year, and vehicle identification
4-15 number of each vehicle covered by the policy;
4-16 (7) the policy limits or a statement that the coverage
4-17 of the policy complies with the minimum amount of liability
4-18 insurance required by Subchapter D; and
4-19 (8) whether the insurance company has provided to the
4-20 policyholder a certificate of insurance for filing with the
4-21 department as evidence of insurance.
4-22 (b) The insurance company shall provide the report in a
4-23 computer readable format as required by department rule.
4-24 (c) This section applies only to a motor vehicle insurance
4-25 policy written or intended to satisfy or held out as satisfying the
5-1 requirements of Subchapter D.
5-2 (d) This section does not require the insurance company to
5-3 provide to the designated agent information that is not in
5-4 possession of the insurance company.
5-5 (e) A motor vehicle insurance company is not liable to any
5-6 person for damages arising as a result of providing information as
5-7 required by this section.
5-8 Sec. 601.506. DEPARTMENT INFORMATION. (a) The designated
5-9 agent shall acquire from the department the name, date of birth,
5-10 address, and driver's license number of each person who holds a
5-11 driver's license issued by the department.
5-12 (b) For each motor vehicle covered under a bond filed under
5-13 Section 601.121 or under a certificate of self-insurance issued
5-14 under Section 601.124, the designated agent shall acquire from the
5-15 department:
5-16 (1) The name, address, date of birth, and driver's
5-17 license number of each owner or operator of a vehicle covered under
5-18 the bond or certificate of self-insurance;
5-19 (2) the make, year, vehicle identification number, and
5-20 motor vehicle license plate number of each covered vehicle; and
5-21 (3) any other information required by department rule.
5-22 (c) The department shall notify the designated agent of the
5-23 cancellation of a bond filed under Section 601.121 or the
5-24 termination of a certificate of self-insurance issued under Section
5-25 601.124.
6-1 (d) This section does not require the department to provide
6-2 to the designated agent information that is not in possession of
6-3 the department.
6-4 (e) The department is not liable to any person for damages
6-5 arising as a result of providing information as required by this
6-6 section.
6-7 Sec. 601.507. TEXAS DEPARTMENT OF TRANSPORTATION
6-8 INFORMATION. (a) The designated agent shall acquire from the
6-9 Texas Department of Transportation for each motor vehicle
6-10 registered by that department:
6-11 (1) the full name and address of the owner of the
6-12 vehicle; and
6-13 (2) the trade name, year model, style and type of
6-14 body, and vehicle identification number of the vehicle.
6-15 (b) This section does not require the Texas Department of
6-16 Transportation to provide to the designated agent information that
6-17 is not in possession of that department.
6-18 (c) The Department of Transportation is not liable to any
6-19 person for damages arising as a result of providing information as
6-20 required by this section.
6-21 Sec. 601.508. NOTICE OF POLICY TERMINATION. An insurance
6-22 company shall notify the department within a period determined by
6-23 the department of the termination of a motor vehicle liability
6-24 insurance policy described by Section 601.505 issued by the
6-25 insurance company.
7-1 Sec. 601.509. NOTICE OF LICENSE SUSPENSION FOR POLICY
7-2 TERMINATION. (a) On notification from an insurance company that a
7-3 person's motor vehicle liability policy has terminated, the
7-4 department shall check the database to determine whether another
7-5 policy replaces the terminated policy.
7-6 (b) If the database has not record of a replacement policy,
7-7 the designated agent, at the direction of the department, shall
7-8 notify the person that the person's driver's license is suspended
7-9 on the 20th day after the date on which the notice was personally
7-10 served or mailed unless, before that date, the person files with
7-11 the department:
7-12 (1) evidence of financial responsibility that complies
7-13 with Subchapter D or E;
7-14 (2) a sworn statement, as described in Section
7-15 521.143, that the person does not own a motor vehicle for which
7-16 evidence of financial responsibility is required under this
7-17 chapter; or
7-18 (3) makes a written request for a hearing.
7-19 (c) If the person requests a hearing under this section, the
7-20 department shall set a time and a place for the hearing. The
7-21 hearing must be held in the person's county of residence. The
7-22 department shall suspend the person's driver's license unless the
7-23 person at the hearing:
7-24 (1) provides evidence of financial responsibility that
7-25 complies with Subchapter D or E; or
8-1 (2) provides a sworn statement, as described in
8-2 Section 521.143, that the person does not own a motor vehicle for
8-3 which evidence of financial responsibility is required under this
8-4 chapter.
8-5 (d) The department shall notify the license holder if the
8-6 department suspends the license under this subchapter.
8-7 Sec. 601.510. DURATION OF SUSPENSION FOR POLICY TERMINATION.
8-8 The department may not reinstate a driver's license suspended under
8-9 this subchapter, renew a driver's license suspended under this
8-10 subchapter, or issue a new license to the holder of a license
8-11 suspended under this subchapter until the holder of the suspended
8-12 license:
8-13 (1) files with the department:
8-14 (A) evidence of financial responsibility that
8-15 complies with Subchapter D or E; or
8-16 (B) a sworn statement, as described in Section
8-17 521.143, that the person does not own a motor vehicle for which
8-18 evidence of financial responsibility is required under this
8-19 chapter; and
8-20 (2) pays to the department a reinstatement fee as
8-21 required by Section 601.376.
8-22 Sec. 601.511. RULES. The department may adopt rules to
8-23 implement this subchapter.
8-24 Sec. 601.512. ADMINISTRATIVE PENALTIES FOR INSURANCE
8-25 COMPANY. An insurance company that violates this subchapter is
9-1 subject to administrative penalties under Article 1.10E, Insurance
9-2 Code.
9-3 SECTION 2. Subchapter D, Chapter 502, Transportation Code,
9-4 is amended by adding Section 502.1695 to read as follows:
9-5 Sec. 502.1695. UNINSURED MOTORIST IDENTIFICATION DATABASE
9-6 FEE. (a) In addition to a fee otherwise imposed for registration
9-7 of a vehicle under this subchapter, at the time a person applies
9-8 for registration or renewal of registration of a motor vehicle, the
9-9 applicant shall pay an uninsured motorist identification database
9-10 fee to be determined by the department but shall not exceed $3 for
9-11 each motor vehicle.
9-12 (b) This section does not apply to:
9-13 (1) a vehicle that is not registered for use on the
9-14 highway;
9-15 (2) a traction engine;
9-16 (3) a road roller or grader;
9-17 (4) a tractor crane;
9-18 (5) a power shovel;
9-19 (6) a well driller; or
9-20 (7) an implement of husbandry.
9-21 (c) The department shall remit the money collected under
9-22 this section to the comptroller for deposit to a separate account
9-23 in the state treasury. The comptroller shall credit the account
9-24 with the interest earned on the account. Money in the account may
9-25 be appropriated only to the Department of Public Safety or the
10-1 department to administer their duties under Subchapter N, Chapter
10-2 601.
10-3 SECTION 3. Section 502.104, Transportation Code, is amended
10-4 to read as follows:
10-5 Sec. 502.104. Disposition of Certain Special Fees. Each
10-6 Monday a county assessor-collector shall send to the department an
10-7 amount equal to collections for the preceding week for:
10-8 (1) each transfer fee collected under Section 502.175;
10-9 and
10-10 (2) each fee collected under Section 502.169(b),
10-11 502.1695, or 502.279.
10-12 SECTION 4. This Act takes effect September 1, 1997.
10-13 SECTION 5. (a) Not later than September 1, 1998, the
10-14 Department of Public Safety shall:
10-15 (1) contract with an entity to serve as designated
10-16 agent under Subchapter N, Chapter 601, Transportation Code, as
10-17 added by this Act; and
10-18 (2) adopt any rules necessary to implement Subchapter
10-19 N, Chapter 601, Transportation Code, as added by this Act.
10-20 (b) Except as provided by Subsection (c) of this section, a
10-21 motor vehicle insurance company is not required to provide
10-22 information under Section 601.508, Transportation Code, as added by
10-23 this Act, before September 1, 1998.
10-24 (c) The Public Safety Commission by rule may designate, by
10-25 market share, premium volume, or another similar characteristic,
11-1 small motor vehicle insurance companies that are not required to
11-2 report under Section 601.505, Transportation Code, as added by this
11-3 Act, before September 1, 1999.
11-4 SECTION 6. The importance of this legislation and the
11-5 crowded condition of the calendars in both houses create an
11-6 emergency and an imperative public necessity that the
11-7 constitutional rule requiring bills to be read on three several
11-8 days in each house be suspended, and this rule is hereby suspended.