HBA-MPA H.B. 2035 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2035
By: Hawley
Transportation
3/19/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, commercial motor carriers operating in this state are required
to maintain worker's compensation coverage or accidental insurance
coverage.  The accidental insurance coverage must be purchased from a
reliable insurance company authorized to write accidental insurance
policies in this state.  Surplus lines insurers are unauthorized insurers
that are not licensed in this state, but they meet eligibility requirements
and otherwise comply with the Insurance Code.  The Texas trucking industry
can use surplus lines for liability insurance coverage but cannot use
surplus lines insurers for accidental insurance.  H.B. 2035 allows for the
use of surplus lines insurers for accidental coverage. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 643.106(a), Transportation Code, to require that
a motor carrier whose primary business is transportation for compensation
or hire between municipalities to protect its employees by obtaining a
surplus lines insurer under Article 1.14-2 (Surplus Lines Insurance),
Insurance Code. 

SECTION 2.  Provides that certain provisions of law enacted by the 75th
Legislature (Section 4, Chapter 1061, Acts of the 75th Legislature, Regular
Session, 1997) are recaptured for the purposes of this Act.  Provides that
this Act prevails over another Act of the 76th Legislature relating to
nonsubstantive additions and corrections in enacted code. 

SECTION 3.Emergency clause.
  Effective date: upon passage.