By Jones of Dallas H.B. No. 2481
76R2563 SMJ-D
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 amending that subsection, and by adding new Subsections (c), (d),
1-8 and (e) to read as follows:
1-9 (c) Insurance required for a taxicab under an ordinance
1-10 adopted under Subsection (b) must be obtained from a reliable
1-11 insurance company authorized to do business in this state, unless
1-12 the taxicab transportation service is self-insured in accordance
1-13 with applicable state statutes. A municipality may find that an
1-14 insurance company does not comply with an ordinance adopted under
1-15 Subsection (b) only if:
1-16 (1) the commissioner of insurance has issued an order
1-17 finding that the company is in bankruptcy in whole or in part, or
1-18 is in a hazardous financial condition as described by Article 1.32,
1-19 Insurance Code; or
1-20 (2) the commissioner of insurance has issued an order
1-21 placing the company in a state of supervision, conservation, or
1-22 ancillary conservation under Article 21.28-A, Insurance Code, or
1-23 the appropriate authority in the company's state of domicile has
1-24 taken a similar action.
2-1 (d) A municipality may require a written certification that,
2-2 for any portion of insurance required for a taxicab under an
2-3 ordinance adopted under Subsection (b) in excess of 10 percent of
2-4 the insurance company's capital and surplus, the insurance company
2-5 has reinsurance for which credit may be taken under Article 5.75-1,
2-6 Insurance Code.
2-7 (e) Except as provided by Subsections (c) and (d), a
2-8 municipality may not regulate, under this section or other general
2-9 law, passenger taxicab transportation services with respect to the
2-10 insurance company insuring a taxicab in the municipality.
2-11 (f) In regulating passenger taxicab transportation services
2-12 under this section, a municipality is performing a governmental
2-13 function. Except as limited by Subsection (c), a [A] municipality
2-14 may carry out the provisions of this section to the extent the
2-15 governing body of the municipality considers it necessary or
2-16 appropriate.
2-17 SECTION 2. This Act takes effect September 1, 1999.
2-18 SECTION 3. The importance of this legislation and the
2-19 crowded condition of the calendars in both houses create an
2-20 emergency and an imperative public necessity that the
2-21 constitutional rule requiring bills to be read on three several
2-22 days in each house be suspended, and this rule is hereby suspended.