By Wolens H.B. No. 267
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 verification of the establishment of financial
1-3 responsibility by owners and operators of motor vehicles, and
1-4 imposing penalties on owners and operators of motor vehicles who
1-5 fail to establish financial responsibility.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Chapter 601, Transportation Code, is amended by
1-8 adding Subchapter N to read as follows:
1-9 SUBCHAPTER N. VERIFICATION AND ENFORCEMENT OF
1-10 ESTABLISHMENT OF FINANCIAL RESPONSIBILITY
1-11 Sec. 601.501. VERIFICATION OF ESTABLISHMENT OF FINANCIAL
1-12 RESPONSIBILITY. (a) The department shall select random samples of
1-13 registrations of motor vehicles subject to Chapter 601 of this
1-14 Code, or owners thereof, for the purpose of verifying whether or
1-15 not the owners of motor vehicles have established financial
1-16 responsibility in accordance with the requirements of Section
1-17 601.051 of this Code. In addition to such general random samples
1-18 of motor vehicle registrations, the department may select for
1-19 verification other random samples, including but not limited to
1-20 registrations of motor vehicles owned by persons:
1-21 (1) whose motor vehicle registrations during the
2-1 preceding 4 years have been suspended pursuant to Section 601.503
2-2 or 601.504 of this Code;
2-3 (2) who during the preceding 4 years have been
2-4 convicted of violating Section 601.191, 601.195, 601.196, 601.505,
2-5 or 601.507 of this Code;
2-6 (3) who during the preceding 4 years have been
2-7 convicted of violating Section 601.191, 601.195, 601.196, 601.505,
2-8 or 601.507 of this Code while operating vehicles owned by other
2-9 persons;
2-10 (4) whose driver's license or vehicle registration has
2-11 been suspended during the preceding 4 years; or
2-12 (5) who during the preceding 4 years received deferred
2-13 adjudication under Article 45.54 of the Texas Code of Criminal
2-14 Procedure for violating Section 601.191, 601.195, 601.196, 601.505,
2-15 or 601.507 of this Code.
2-16 (b) In preparation for selection of random samples and their
2-17 verification, the department shall send to owners of randomly
2-18 selected motor vehicles, or to randomly selected motor vehicle
2-19 owners, requests for information about their motor vehicles and
2-20 their method of establishing financial responsibility. The request
2-21 shall require the owner to state whether or not he had established
2-22 financial responsibility in accordance with the requirements of
2-23 Section 601.051 of this Code on the verification date stated in the
2-24 department's request. The department shall prescribe by rule the
2-25 methods employed for the selection of random samples, the frequency
3-1 that the random samples are to be selected, the form that the
3-2 department shall use for verification of financial responsibility,
3-3 and the information that is to be requested in the prescribed form.
3-4 The request may require, but is not limited to:
3-5 (1) a statement by the owner that he had established
3-6 financial responsibility on the verification date in the
3-7 department's request through liability insurance in compliance with
3-8 Subchapter D of this Code and the names and addresses of insurers,
3-9 policy numbers, and expiration dates of insurance coverage;
3-10 (2) a statement by the owner that he had established
3-11 financial responsibility on the verification date stated in the
3-12 department's request by filing a surety bond with the department in
3-13 compliance with Section 601.121 of this Code and the name and
3-14 address of the company issuing the bond, the number of the bond,
3-15 and the expiration date of the bond;
3-16 (3) a statement by the owner that he had established
3-17 financial responsibility on the verification date stated in the
3-18 department's request by depositing the required $55,000 in cash or
3-19 securities with the comptroller in compliance with Section 601.122
3-20 of this Code and a copy of the certificate issued by the
3-21 comptroller showing compliance;
3-22 (4) a statement by the owner that he had established
3-23 financial responsibility on the verification date stated in the
3-24 department's request by depositing at least $55,000 in cash or
3-25 cashier's check with the county judge of the county in which the
4-1 motor vehicle is registered in compliance with Section 601.123 of
4-2 this Code and a copy of the certificate issued by the county judge
4-3 showing compliance with this section; or
4-4 (5) a statement by the owner that he had established
4-5 financial responsibility on the verification date stated in the
4-6 department's request through self-insurance in compliance with
4-7 Section 601.124 of this Code and a copy of the certificate of
4-8 self-insurance issued by the department.
4-9 (c) Within 30 days after the department mails a request, the
4-10 owner to whom it is sent shall furnish the requested information to
4-11 the department on a form prescribed by the department which shall
4-12 include the owner's signed affirmation that such information is
4-13 true and correct. Any owner whose response indicates that he or
4-14 she had not established financial responsibility in accordance with
4-15 Section 601.051 of this Code shall be deemed to have registered or
4-16 maintained registration of a motor vehicle in violation of that
4-17 Section. Any owner who fails to respond to such a request shall be
4-18 deemed to have registered or maintained registration of a motor
4-19 vehicle in violation of Section 601.051 of this Code.
4-20 (d) If the owner responds to the request for information by
4-21 asserting that he or she had established financial responsibility
4-22 in accordance with one of the methods specified in Section 601.051
4-23 of this Code on the verification date stated in the department's
4-24 request, the department may conduct a verification of the response
4-25 through any of the following methods:
5-1 (1) furnish the necessary information to the insurer
5-2 named in the response; and the insurer shall within 30 days inform
5-3 the department whether or not on the verification date stated the
5-4 motor vehicle was insured by the insurer in accordance with
5-5 Subchapter D of this Code;
5-6 (2) furnish the necessary information to the company
5-7 issuing the bond named in the response; and the company issuing the
5-8 bond shall within 30 days inform the department whether or not on
5-9 the verification date stated a bond has been issued in accordance
5-10 with Section 601.124 of this Code;
5-11 (3) furnish the necessary information to the
5-12 comptroller; and the comptroller shall within 30 days inform the
5-13 department whether or not on the verification date the person had
5-14 deposited the required cash or securities to establish financial
5-15 responsibility in accordance with Section 601.122 of this Code;
5-16 (4) furnish the necessary information to the county
5-17 judge named in the response; and the county judge shall within 30
5-18 days inform the department whether or not on the verification date
5-19 the person had deposited the required funds to establish financial
5-20 responsibility in accordance with Section 601.123 of this Code; or
5-21 (5) search the department's records to verify that a
5-22 certificate of self-insurance has been issued in accordance with
5-23 Section 601.124 of this Code.
5-24 (e) The department shall prescribe by rule the procedures
5-25 that are necessary for the implementation of the verification
6-1 process.
6-2 (f) No random sample selected under this Section shall be
6-3 categorized on the basis of race, color, religion, sex, national
6-4 origin, age, marital status, physical or mental disability,
6-5 economic status, or geography.
6-6 Sec. 601.502. FAILURE TO ESTABLISH FINANCIAL
6-7 RESPONSIBILITY-NOTICE. If the department determines that an owner
6-8 has registered or maintained the registration of a motor vehicle
6-9 without the establishment of financial responsibility in accordance
6-10 with Section 601.051 of this Code, the department shall notify the
6-11 owner that such owner's vehicle registration shall be suspended 45
6-12 days after the date of the mailing of the notice unless the owner
6-13 within 30 days furnishes proof of financial responsibility in
6-14 effect on the verification date, as prescribed by the department.
6-15 Sec. 601.503. FAILURE TO ESTABLISH FINANCIAL
6-16 RESPONSIBILITY-SUSPENSION AND REINSTATEMENT. (a) The department
6-17 shall suspend the vehicle registration of any motor vehicle
6-18 determined by the department to be in violation of Section 601.051
6-19 of this Code, including any motor vehicle operated in violation of
6-20 Section 601.191, 601.505, or 601.507 of this Code by an operator
6-21 other than the owner of the vehicle. Neither the fact that,
6-22 subsequent to the date of verification or conviction, the owner
6-23 established the required financial responsibility nor the fact that
6-24 the owner terminated ownership of the motor vehicle shall have any
6-25 bearing upon the department's decision to suspend.
7-1 (b) The department is authorized to suspend the registration
7-2 of any motor vehicle registered in this State upon receiving notice
7-3 of the conviction of the operator of the motor vehicle in another
7-4 State of an offense which, if committed in this State, would
7-5 constitute a violation of Section 601.051 of this Code.
7-6 (c) Until it is terminated, the suspension shall remain in
7-7 force after the registration is renewed or a new registration is
7-8 acquired for the motor vehicle. The suspension also shall apply to
7-9 any motor vehicle to which the owner transfers the registration.
7-10 (d) In the case of a first violation, the department shall
7-11 terminate the suspension upon payment by the owner of a
7-12 reinstatement fee of $100 and submission of proof of financial
7-13 responsibility as prescribed by the department.
7-14 (e) In the case of a second or subsequent violation by a
7-15 person having an ownership interest in a motor vehicle or vehicles
7-16 within the preceding 4 years, or a violation of Section 601.505 of
7-17 this Code, the department shall terminate the suspension 4 months
7-18 after its effective date upon payment by the owner of a
7-19 reinstatement fee of $100 and submission of proof of financial
7-20 responsibility as prescribed by the department.
7-21 (f) All fees collected under this section shall be deposited
7-22 into the General Revenue Fund.
7-23 Sec. 601.504. SUBMISSION OF FALSE PROOF-PENALTY. (a) If
7-24 the department determines that the proof of financial
7-25 responsibility submitted by a motor vehicle owner under Section
8-1 601.501, 601.502, or 601.503 of this Code is false, the department
8-2 shall suspend the owner's vehicle registration. The department
8-3 shall terminate the suspension 6 months after its effective date
8-4 upon payment by the owner of a reinstatement fee of $200 and
8-5 submission of proof of financial responsibility as prescribed by
8-6 the department.
8-7 (b) All fees collected under this section shall be deposited
8-8 in the General Revenue Fund.
8-9 Sec. 601.505. OPERATION OF A MOTOR VEHICLE WHEN REGISTRATION
8-10 SUSPENDED FOR FAILURE TO ESTABLISH FINANCIAL RESPONSIBILITY. (a)
8-11 No person shall operate a vehicle if the registration of such
8-12 vehicle is suspended pursuant to Section 601.503 or 601.504 of this
8-13 Code.
8-14 (b) Any person convicted of violating this section is guilty
8-15 of a business offense and shall be required to pay a fine of not
8-16 less than $1,000 or more than $2,000.
8-17 Sec. 601.506. EVIDENCE OF FINANCIAL RESPONSIBILITY. (a)
8-18 Every operator of a motor vehicle subject to Section 601.051 of
8-19 this Code shall carry within the vehicle evidence of financial
8-20 responsibility. The evidence shall be legible and sufficient to
8-21 demonstrate that the owner or operator of the motor vehicle has
8-22 currently established financial responsibility as required under
8-23 Section 601.051 of this Code and may include, but is not limited
8-24 to, the following:
8-25 (1) a motor vehicle liability insurance policy
9-1 covering the vehicle that satisfies Subchapter D of this Code or a
9-2 photocopy of the policy;
9-3 (2) a standard proof of motor vehicle liability
9-4 insurance form prescribed by the Texas Department of Insurance;
9-5 (3) a liability insurance binder as specified in
9-6 Section 601.080 of this Code or a certificate of liability
9-7 insurance as specified in Section 601.083 of this Code;
9-8 (4) the combination of proof of purchase of the motor
9-9 vehicle within the previous 30 days and current proof of insurance;
9-10 (5) evidence that a surety bond has been filed with
9-11 the department in accordance with Section 601.121 of this Code;
9-12 (6) a certificate issued by the comptroller stating
9-13 that a deposit has been made with the comptroller that complies
9-14 with Section 601.122 of this Code;
9-15 (7) a certificate issued by a county judge stating
9-16 that a deposit has been made with the county judge that complies
9-17 with Section 601.123 of this Code;
9-18 (8) a certificate of self-insurance issued by the
9-19 department in accordance with Section 601.124 of this Code; or
9-20 (9) a certificate, decal, or other document issued by
9-21 a governmental agency for a motor vehicle indicating the vehicle is
9-22 owned by the United States, this State, or a political subdivision
9-23 of this state.
9-24 (b) The evidence of financial responsibility shall be
9-25 displayed upon a request made by any peace officer. Any person who
10-1 fails or refuses to comply with such request is in violation of
10-2 Section 601.051 of this Code. Any person who provides evidence of
10-3 financial responsibility, knowing that financial responsibility has
10-4 not been established as required under Section 601.051 of this Code
10-5 or knowing the evidence of financial responsibility is illegally
10-6 altered, counterfeit, or otherwise invalid, is in violation of
10-7 Section 601.196 or 601.507 of this Code.
10-8 (c) "Display" means the manual surrender of the evidence of
10-9 financial responsibility into the hands of the peace officer,
10-10 court, or officer of the court making the request for the
10-11 inspection thereof.
10-12 Sec. 601.507. DISPLAY OF FALSE PROOF OF FINANCIAL
10-13 RESPONSIBILITY. (a) A person commits an offense if the person
10-14 displays evidence of financial responsibility to a peace officer,
10-15 court, or officer of the court knowing that financial
10-16 responsibility has not been established as required under Section
10-17 601.051 of this Code or knowing the evidence of financial
10-18 responsibility is illegally altered, counterfeit, or otherwise
10-19 invalid. If the peace officer issues a citation to a motor vehicle
10-20 operator for displaying invalid evidence of financial
10-21 responsibility, the officer shall confiscate the evidence for
10-22 presentation in court.
10-23 (b) An offense under this Section is a misdemeanor
10-24 punishable by:
10-25 (1) A fine not to exceed $1,000;
11-1 (2) confinement in the county jail not to exceed one
11-2 year; or
11-3 (3) both the fine and the confinement.
11-4 SECTION 2. Section 601.051 is amended to read as follows:
11-5 Sec. 601.051. REQUIREMENT OF FINANCIAL RESPONSIBILITY. A
11-6 person may not operate, register, or maintain registration of a
11-7 motor vehicle and no owner shall permit another person to operate,
11-8 register, or maintain registration of a motor vehicle in this state
11-9 unless financial responsibility is established for the vehicle
11-10 through:
11-11 (1) a motor vehicle liability insurance policy that
11-12 complied with Subchapter D;
11-13 (2) a surety bond filed under Section 601.121;
11-14 (3) a deposit under Section 601.122;
11-15 (4) a deposit under Section 601.123; or
11-16 (5) self-insurance under Section 601.124.
11-17 (b) Any person who fails to comply with a request by a peace
11-18 officer for display of evidence of financial responsibility as
11-19 required under Section 601.506 of this Code shall be deemed to be
11-20 operating a motor vehicle in violation of this Section.
11-21 SECTION 3. Section 601.191, Transportation Code, is amended
11-22 to read as follows:
11-23 Sec. 601.191. OPERATION OF MOTOR VEHICLE IN VIOLATION OF
11-24 FINANCIAL RESPONSIBILITY REQUIREMENTS [MOTOR VEHICLE LIABILITY
11-25 INSURANCE REQUIREMENT]; OFFENSE. (a) A person commits an offense
12-1 if the person operates a motor vehicle in violation of Section
12-2 601.051.
12-3 (b) [Except as provided by Subsections (c) and (d), an] An
12-4 offense under this section is a business offense [misdemeanor]
12-5 punishable by a fine of not less than $500 [$175] or more than
12-6 $1,000 [$350].
12-7 (c) However, no person charged with violation of this
12-8 Section shall be convicted if such person produces in court
12-9 satisfactory evidence that at the time of the arrest the owner or
12-10 operator had established financial responsibility in accordance
12-11 with Section 601.051 of this Code. [If a person has been
12-12 previously convicted of an offense under this section, an offense
12-13 under this section is a misdemeanor punishable by a fine of not
12-14 less than $350 or more than $1,000.]
12-15 [(d) If the court determines that a person who has not been
12-16 previously convicted of an offense under this section is
12-17 economically unable to pay the fine, the court may reduce the fine
12-18 to less than $175.]
12-19 SECTION 4. REPEALER. The following Subchapters of Chapter
12-20 601, Transportation Code are repealed:
12-21 (1) Subchapter H, Chapter 601, Transportation Code;
12-22 and
12-23 (2) Subchapter I, Chapter 601, Transportation Code.
12-24 SECTION 5. Section 12.02, Subchapter A, Chapter 12, Penal
12-25 Code, is amended to read as follows:
13-1 Sec. 12.02. CLASSIFICATION OF OFFENSES. Offenses are
13-2 designated as felonies, [or] misdemeanors or business offenses.
13-3 SECTION 6. Subchapter A, Chapter 12, Penal Code, is amended
13-4 by adding Section 12.05 to read as follows:
13-5 Sec. 12.05. CLASSIFICATION OF BUSINESS OFFENSE. (a) A
13-6 business offense is an offense for which the fine is not less that
13-7 $500.
13-8 (b) Conviction of a business offense does not impose any
13-9 legal disability or disadvantage.
13-10 SECTION 7. Subchapter B, Chapter 12, Penal Code, is amended
13-11 by adding Section 12.24 to read as follows:
13-12 SUBCHAPTER B. ORDINARY MISDEMEANOR AND BUSINESS OFFENSE
13-13 PUNISHMENTS.
13-14 Sec. 12.24. BUSINESS OFFENSE. An individual adjudged guilty
13-15 of a business offense shall be punished by a fine not less than
13-16 $500.
13-17 SECTION 8. This Act takes effect September 1, 1999.
13-18 SECTION 9. The importance of this legislation and the
13-19 crowded condition of the calendars in both houses create an
13-20 emergency and an imperative public necessity that the
13-21 constitutional rule requiring bills to be read on three several
13-22 days in each house be suspended, and this rule is hereby suspended.