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.