By Chavez                                               H.B. No. 72
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to requiring insurance firms to report cancellation or
 1-3     expiration of auto liability insurance to the Department of Public
 1-4     Safety.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.   Chapter 502, Subchapter D, Sec. 502.153,
 1-7     Transportation Code is amended by adding subsection (j) to read as
 1-8     follows:
 1-9               CHAPTER D.  REGISTRATION PROCEDURES AND FEES. 
1-10           Sec. 502.153.  Evidence of Financial Responsibility.
1-11           Sec. 502.153.  Evidence of Financial Responsibility.  (a)
1-12     The owner of a motor vehicle, other than a trailer or semitrailer,
1-13     for which evidence of financial responsibility is required by
1-14     Section 601.051 or a person who represents the owner for purposes
1-15     of registering a motor vehicle shall submit evidence of financial
1-16     responsibility with the application for registration under Section
1-17     502.151.  A county assessor-collector may not register the motor
1-18     vehicle unless the owner or the owner's representative submits the
1-19     evidence of financial responsibility.
1-20           (b)  The county assessor-collector shall examine the evidence
1-21     of financial responsibility to determine whether it complies with
 2-1     Subsection (c).  After examining the evidence, the
 2-2     assessor-collector shall return the evidence unless it is in the
 2-3     form of a photocopy or an electronic submission.
 2-4           (c)  In this section, evidence of financial responsibility
 2-5     may be:
 2-6                 (1)  a document listed under Section 601.053(a);
 2-7                 (2)  a liability self-insurance or pool coverage
 2-8     document issued by a political subdivision or governmental pool
 2-9     under the authority of Chapter 791, Government Code, Chapter 119,
2-10     Local Government Code, or other applicable law in at least the
2-11     minimum amounts required by Chapter 601;
2-12                 (3)  a photocopy of a document described by Subdivision
2-13     (1) or (2); or
2-14                 (4)  an electronic submission of a document or the
2-15     information contained in a document described by Subdivision (1) or
2-16     (2).
2-17           (d)  A personal automobile policy used as evidence of
2-18     financial responsibility under this section must comply with
2-19     Article 5.06, Insurance Code.
2-20           (e)  At the time of registration, the county
2-21     assessor-collector shall provide to a person registering a motor
2-22     vehicle a separate statement that the motor vehicle being
2-23     registered may not be operated in this state unless:
2-24                 (1)  liability insurance coverage for the motor vehicle
2-25     in at least the minimum amounts required by law remains in effect
 3-1     to insure against potential losses; or
 3-2                 (2)  the motor vehicle is exempt from the insurance
 3-3     requirement because the person has established financial
 3-4     responsibility in a manner described by Section 601.051(2)-(5) or
 3-5     is exempt under Section 601.052.
 3-6           (f)  A county assessor-collector is not liable to any person
 3-7     for refusing to register a motor vehicle to which this section
 3-8     applies because of the person's failure to submit evidence of
 3-9     financial responsibility that complies with Subsection (c).
3-10           (g)  A county, a county assessor-collector, a deputy county
3-11     assessor-collector, a person acting for or on behalf of a county or
3-12     a county assessor-collector, or a person acting on behalf of an
3-13     owner for purposes of registering a motor vehicle is not liable to
3-14     any person for registering a motor vehicle under this section.
3-15           (h)  This section does not prevent a person from registering
3-16     a motor vehicle by mail or through an electronic submission.
3-17           (i)  To be valid under this section, an electronic submission
3-18     must be in a format that is:
3-19                 (1)  submitted by electronic means, including a
3-20     telephone, facsimile machine, or computer;
3-21                 (2)  approved by the department; and
3-22                 (3)  authorized by the commissioners court for use in
3-23     the county.
3-24           (j)  In the event that an auto liability insurance policy has
3-25     been cancelled or expired, the affected insurance company shall be
 4-1     required to report this information to the Texas Department of
 4-2     Public Safety.  The Department will then, in turn, suspend the
 4-3     owner's driver's license until such time that the policy is
 4-4     reinstated and proof of financial responsibility for the registered
 4-5     vehicle can be verified.
 4-6           SECTION 2.  This Act takes effect September 1, 1999.
 4-7           SECTION 3.  The importance of this legislation and the
 4-8     crowded condition of the calendars in both houses create an
 4-9     emergency and an imperative public necessity that the
4-10     constitutional rule requiring bills to be read on three several
4-11     days in each house be suspended, and this rule is hereby suspended.