By Jones of Dallas H.B. No. 2481
Substitute the following for H.B. No. 2481:
By Edwards C.S.H.B. No. 2481
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to municipal regulations concerning insurance for
1-3 taxicabs.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 215.004, Local Government Code, is
1-6 amended by redesignating Subsection (c) as Subsection (f) and
1-7 adding new Subsections (c)-(e) to read as follows:
1-8 (c) Insurance required by an ordinance adopted under
1-9 Subsection (b) for a passenger taxicab transportation service must
1-10 be obtained from a reliable insurance company authorized to do
1-11 business in this state, unless an ordinance permits the service to
1-12 be self-insured in accordance with applicable state statutes.
1-13 (d) A municipality may adopt an ordinance regarding the
1-14 rating and financial strength, including capital and surplus, of an
1-15 insurance company described by Subsection (c). An insurance
1-16 company satisfies an ordinance adopted under this subsection if:
1-17 (1) the insurance company obtains 100% reinsurance for
1-18 the portion of each taxicab risk it insures; and
1-19 (2) the reinsurer is authorized to do business in this
1-20 state and complies with an ordinance adopted under this subsection
1-21 regarding the rating and financial strength of an insurance
1-22 company; providing that, the contract of reinsurance must
1-23 specifically provide that the reinsurance shall be payable directly
1-24 to a person injured by a passenger taxicab transportation service
2-1 in the event of the insolvency of the insurance company.
2-2 (e) Subsection (c) and (d) apply only to a municipality with
2-3 a population of more than one million located in a county with a
2-4 population of more than 1.5 million.
2-5 (f) [(c)] In regulating passenger taxicab transportation
2-6 services under this section, a municipality is performing a
2-7 governmental function. Except as limited by Subsection (c) and
2-8 (d), a [A] municipality may carry out the provisions of this
2-9 section to the extent the governing body of the municipality
2-10 considers it necessary or appropriate.
2-11 SECTION 2. This Act takes effect September 1, 1999.
2-12 SECTION 3. The importance of this legislation and the
2-13 crowded condition of the calendars in both houses create an
2-14 emergency and an imperative public necessity that the
2-15 constitutional rule requiring bills to be read on three several
2-16 days in each house be suspended, and this rule is hereby suspended.