SRC-JBJ S.B. 522 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 522
By: Cain
Economic Development
3/29/1999
As Filed


DIGEST 

Currently, the Texas Department of Insurance interprets the definition for
"vehicle" to exclude rental trucks, small utility trailers, motor homes,
and motorcycles.  As a result, a rental company, licensed to issue
short-term, optional insurance, may not extend its limited coverage to
certain  rental vehicles and equipment.  S.B. 522 would authorize insurance
coverage on certain rental vehicles and vehicle equipment by redefining
certain terms in Article 21.07, Insurance Code, to include rental trucks,
small utility trailers, motor homes, motorcycles, car-top carriers, and tow
dollies. 

PURPOSE

As proposed, S.B. 522 authorizes insurance coverage on certain rental
vehicles and vehicle equipment. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subsections 21 (b), (f), (g), (i), and (j), Article
21.07, Insurance Code, to redefine "limited licensee," "rental agreement,"
"rental car company," "renter," "vehicle," and vehicle equipment."
Authorizes a rental car company or a licensed franchisee to act as an agent
for an authorized insurer only when the company or franchisee acts with a
certain type of insurance and rents vehicles or vehicle equipment, rather
than only the rental of vehicles.  Sets forth the kinds of insurance
required for a rental car company or franchisee and includes vehicle
equipment under the coverage of those insurance types.  Makes conforming
changes.   

SECTION 2.  Makes application of this Act prospective.

SECTION 3.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 4.Emergency clause.