By Gutierrez, Thompson, Haggerty, Chavez, H.B. No. 1752
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to proof of financial responsibility in connection with
1-3 operation of a motor vehicle and creating the motor vehicle
1-4 insurance verification program; providing criminal penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 601.053(a), Transportation Code, is
1-7 amended to read as follows:
1-8 (a) As a condition of operating in this state a motor
1-9 vehicle to which Section 601.051 applies, the operator of the
1-10 vehicle on request shall provide to a peace officer, as defined by
1-11 Article 2.12, Code of Criminal Procedure, or a person involved in
1-12 an accident with the operator evidence of financial responsibility
1-13 by exhibiting:
1-14 (1) a motor vehicle liability insurance policy
1-15 covering the vehicle that satisfies Subchapter D or a photocopy of
1-16 the policy;
1-17 (2) a standard proof of motor vehicle liability
1-18 insurance form prescribed by the department [Texas Department of
1-19 Insurance] under Section 601.081 and issued by a liability insurer
1-20 for the motor vehicle;
1-21 (3) an insurance binder that confirms the operator is
1-22 in compliance with this chapter;
1-23 (4) a surety bond certificate issued under Section
1-24 601.121;
1-25 (5) a certificate of a deposit with the comptroller
2-1 covering the vehicle issued under Section 601.122;
2-2 (6) a copy of a certificate of a deposit with the
2-3 appropriate county judge covering the vehicle issued under Section
2-4 601.123; or
2-5 (7) a certificate of self-insurance covering the
2-6 vehicle issued under Section 601.124 or a photocopy of the
2-7 certificate.
2-8 SECTION 2. Section 601.081, Transportation Code, is amended
2-9 to read as follows:
2-10 Sec. 601.081. STANDARD PROOF OF MOTOR VEHICLE LIABILITY
2-11 INSURANCE FORM. (a) The department shall provide for the
2-12 production of a standard proof of motor vehicle liability insurance
2-13 form for use by insurers. The department may contract with another
2-14 person for production of the form.
2-15 (b) Each insurer issuing a standard proof of motor vehicle
2-16 liability insurance form shall use a form produced by the
2-17 department.
2-18 (c) The department may adopt rules to implement this
2-19 section, including rules relating to the use of security features
2-20 for the form.
2-21 (d) The [A] standard proof of motor vehicle liability
2-22 insurance form prescribed by the department [Texas Department of
2-23 Insurance] must include:
2-24 (1) the name of the insurer;
2-25 (2) the insurance policy number;
2-26 (3) the policy period;
2-27 (4) the name and address of each insured;
3-1 (5) the policy limits or a statement that the coverage
3-2 of the policy complies with the minimum amounts of motor vehicle
3-3 liability insurance required by this chapter; and
3-4 (6) the make and model of each covered vehicle.
3-5 SECTION 3. Chapter 601, Transportation Code, is amended by
3-6 adding Subchapter N to read as follows:
3-7 SUBCHAPTER N. MOTOR VEHICLE INSURANCE VERIFICATION PROGRAM;
3-8 INSURER REPORTING
3-9 Sec. 601.441. DEFINITIONS. In this subchapter:
3-10 (1) "Database" means the motor vehicle insurance
3-11 verification database established under this subchapter.
3-12 (2) "Designated agent" means a person administering
3-13 the program under contract with the department.
3-14 (3) "Program" means the motor vehicle insurance
3-15 verification program established under this subchapter.
3-16 Sec. 601.442. ESTABLISHMENT OF PROGRAM. (a) The department
3-17 shall establish a motor vehicle insurance verification program to
3-18 verify compliance with this chapter.
3-19 (b) The department by rule shall administer the program with
3-20 the assistance of a designated agent.
3-21 (c) The program must comply with the Driver's Privacy
3-22 Protection Act of 1994 (18 U.S.C. Section 2721 et seq.).
3-23 Sec. 601.443. DESIGNATED AGENT: MAINTENANCE OF DATABASE.
3-24 (a) The department shall contract with a person to act as the
3-25 department's designated agent under this subchapter. The contract
3-26 may be awarded under a competitive bid procedure as provided by
3-27 department rule. The contract may not obligate the department to
4-1 pay more money than the public safety director determines will be
4-2 available from fees collected under Section 502.1715.
4-3 (b) The designated agent shall develop and maintain a
4-4 computer database to manage and provide access to information
4-5 provided under Sections 601.445, 601.446, and 601.447.
4-6 (c) The database shall be developed, maintained, and
4-7 administered in accordance with guidelines established by the
4-8 department to permit efficient access by courts and state and local
4-9 law enforcement agencies.
4-10 Sec. 601.444. VERIFICATION: NOTICE FOR NONCOMPLIANCE. (a)
4-11 With information provided by the department and the Texas
4-12 Department of Transportation, the designated agent shall, at least
4-13 monthly:
4-14 (1) update the database with the motor vehicle
4-15 insurance information provided by insurers under Section 601.445;
4-16 and
4-17 (2) compare all current motor vehicle registrations
4-18 provided by the Texas Department of Transportation against the
4-19 database.
4-20 (b) If a comparison under this section shows that a motor
4-21 vehicle is not insured, the department may direct that the
4-22 designated agent mail a notice to the owner of the motor vehicle
4-23 stating that the owner has 45 days to provide:
4-24 (1) proof of the owner's financial responsibility in a
4-25 form described by Section 601.053;
4-26 (2) a letter from an insurance agent or company
4-27 verifying that the person had the required motor vehicle insurance
5-1 coverage on the date of action specified by the database query;
5-2 (3) proof of an exemption from the owner's financial
5-3 responsibility under Section 601.052; or
5-4 (4) proof that the owner of the motor vehicle is
5-5 insured by an insurance company located in another state because
5-6 the owner is a member of the United States armed forces, a student
5-7 attending an educational institution in this state and residing in
5-8 this state, or a faculty member of an educational institution in
5-9 this state who is residing in this state.
5-10 (c) If an owner of a motor vehicle has not provided proof of
5-11 financial responsibility to the designated agent by the 45th day
5-12 after the date the notice is sent, the department may direct the
5-13 designated agent to provide an additional notice.
5-14 Sec. 601.445. INFORMATION PROVIDED BY INSURANCE COMPANY. (a)
5-15 Each insurance company providing motor vehicle liability policies
5-16 in this state shall provide the designated agent a record of each
5-17 motor vehicle insurance policy, including:
5-18 (1) the insurance policy number, effective date, and
5-19 expiration date of the policy;
5-20 (2) the name, address, and driver's license number of
5-21 each driver insured by the policy; and
5-22 (3) the make, model, year, and vehicle identification
5-23 number of each vehicle covered by the policy.
5-24 (b) Each insurance company shall provide information
5-25 required by Subsection (a) to the designated agent in an electronic
5-26 submission monthly or more frequently as prescribed by the public
5-27 safety director.
6-1 (c) If information provided by an insurance company to the
6-2 designated agent is incorrect, the insurance company shall provide
6-3 corrected information to the designated agent in a timely manner as
6-4 prescribed by the public safety director after the date the
6-5 insurance company receives notice of the error from the designated
6-6 agent.
6-7 (d) Information provided by an insurance company under this
6-8 section remains the property of the insurance company and may not
6-9 be sold or made available except to enforce a state law.
6-10 Sec. 601.446. INFORMATION PROVIDED BY DEPARTMENT. (a) The
6-11 department shall provide the designated agent the following
6-12 information on each Texas driver's license holder:
6-13 (1) the holder's name and address; and
6-14 (2) the driver's license number and expiration date.
6-15 (b) For each motor vehicle covered by a bond filed under
6-16 Section 601.121, a deposit made under Section 601.123, or a
6-17 certificate of self-insurance issued under Section 601.124, the
6-18 department shall provide to the designated agent:
6-19 (1) the owner's name and address; and
6-20 (2) the owner's driver's license number and expiration
6-21 date.
6-22 (c) The department shall notify the designated agent of:
6-23 (1) the cancellation of a bond filed under Section
6-24 601.121;
6-25 (2) the cancellation of a deposit filed under Section
6-26 601.123; or
6-27 (3) the termination of a certificate of self-insurance
7-1 issued under Section 601.124.
7-2 (d) This section does not require the department to provide
7-3 to the designated agent information that is not in the possession
7-4 of the department.
7-5 (e) The department shall provide the information under this
7-6 section in an electronic submission to the designated agent in a
7-7 timely manner as prescribed by the public safety director.
7-8 (f) The department is not liable to any person for damages
7-9 arising as a result of providing information as required by this
7-10 section.
7-11 Sec. 601.447. INFORMATION PROVIDED BY TEXAS DEPARTMENT OF
7-12 TRANSPORTATION. (a) The Texas Department of Transportation shall
7-13 provide the department or its designated agent the following
7-14 information for each vehicle to which this chapter applies, to the
7-15 extent the information is in the Texas Department of
7-16 Transportation's records:
7-17 (1) the owner's name and address;
7-18 (2) the make, model, and year of the vehicle;
7-19 (3) the vehicle identification number and vehicle
7-20 license plate number; and
7-21 (4) the date the certificate of title was issued for
7-22 the vehicle.
7-23 (b) The Texas Department of Transportation is not required
7-24 to provide information under this section about a vehicle
7-25 registered under Subchapter G, Chapter 502.
7-26 (c) The Texas Department of Transportation shall provide the
7-27 information under this section and each change to information
8-1 previously provided under this section in a weekly report that
8-2 includes the information for registrations and changes occurring
8-3 during the week preceding the date of the report.
8-4 (d) The Texas Department of Transportation shall provide by
8-5 electronic submission to the department or its designated agent any
8-6 information required under this section in a timely manner as
8-7 prescribed by the public safety director.
8-8 Sec. 601.448. RULES. (a) The department may adopt rules as
8-9 necessary to implement this subchapter.
8-10 (b) The department shall consult with the Texas Department
8-11 of Transportation about rules that affect the reporting of
8-12 information relating to vehicle registrations.
8-13 (c) The department by rule may waive a requirement that
8-14 particular information be provided to the designated agent if the
8-15 department finds that the information is not useful for enforcing
8-16 this chapter or that the burden of collecting or reporting the
8-17 information is not justified by its value in enforcing this
8-18 chapter.
8-19 (d) The Texas Department of Insurance shall adopt rules for
8-20 enforcing compliance for insurance companies reporting under
8-21 Section 601.445.
8-22 Sec. 601.449. INFORMATION REMAINS PROPERTY OF AGENCIES. (a)
8-23 Information provided by the department under Section 601.446 and
8-24 information provided by the Texas Department of Transportation
8-25 under Section 601.447 remains the property of each agency and may
8-26 not be sold or made available except to enforce a state law.
8-27 (b) Information provided by the department under Section
9-1 601.446 and information provided by the Texas Department of
9-2 Transportation under Section 601.447 is confidential and not
9-3 subject to disclosure under Chapter 552, Government Code.
9-4 Sec. 601.450. LIABILITY OF CERTAIN OFFICERS, EMPLOYEES, AND
9-5 AGENTS. An officer or employee of an insurance company, an officer,
9-6 employee, or agent of the department, or an officer, employee,
9-7 agent, or statutory agent of the Texas Department of Transportation
9-8 is not liable in a civil action for an act performed in good faith
9-9 in providing information in compliance with this subchapter.
9-10 Sec. 601.451. VIOLATION; CRIMINAL PENALTY. (a) A person
9-11 commits an offense if the person knowingly releases information
9-12 maintained by the department or its designated agent under this
9-13 subchapter except to enforce a state law.
9-14 (b) An offense under this section is a Class A misdemeanor.
9-15 Sec. 601.452. REVIEW OF PROGRAM. (a) After January 1, 2007,
9-16 and before September 1, 2007, the department shall review the
9-17 effectiveness of the program and determine the amount by which
9-18 compliance with this chapter has increased between September 1,
9-19 2001, and the date of the review. The department may coordinate
9-20 with the Texas Department of Insurance to conduct the review. If
9-21 the department determines that compliance has not increased by at
9-22 least eight percent during that period, this subchapter and Section
9-23 502.1715 expire September 1, 2007.
9-24 (b) This section expires September 2, 2007.
9-25 SECTION 4. Section 502.104, Transportation Code, is amended
9-26 to read as follows:
9-27 Sec. 502.104. DISPOSITION OF CERTAIN SPECIAL FEES. Each
10-1 Monday a county assessor-collector shall send to the department an
10-2 amount equal to collections for the preceding week for:
10-3 (1) each transfer fee collected under Section 502.175;
10-4 and
10-5 (2) each fee collected under Section 502.169(b),
10-6 502.1715, or 502.279.
10-7 SECTION 5. Subchapter D, Chapter 502, Transportation Code, is
10-8 amended by adding Section 502.1715 to read as follows:
10-9 Sec. 502.1715. ADDITIONAL FEE FOR EVIDENCE OF FINANCIAL
10-10 RESPONSIBILITY SYSTEM. (a) In addition to other fees imposed for
10-11 registration of a motor vehicle, at the time of application for
10-12 registration or renewal of registration of a motor vehicle for
10-13 which the owner is required to submit evidence of financial
10-14 responsibility under Section 502.153, the applicant shall pay a fee
10-15 of $1.
10-16 (b) Fees collected under this section shall be deposited to
10-17 the credit of the state highway fund. The department shall use
10-18 money appropriated from the state highway fund that represents
10-19 those fees to administer Subchapter N, Chapter 601, and to
10-20 reimburse the Department of Public Safety for expenses in
10-21 administering that subchapter.
10-22 (c) The department and the Department of Public Safety shall
10-23 adopt rules and develop forms necessary to administer this section.
10-24 SECTION 6. Sections 601.371(d) and (e), Transportation Code,
10-25 are amended to read as follows:
10-26 (d) Except as provided by Subsection (e), an offense under
10-27 this section is a misdemeanor punishable by[:]
11-1 [(1)] a fine of not less than $100 or more than $750
11-2 [$500; and]
11-3 [(2) confinement in county jail for a term of not less
11-4 than 72 hours or more than six months].
11-5 (e) If it is shown on the trial of an offense under this
11-6 section that the person has previously been convicted two or more
11-7 times of an offense under this section or under Section 521.457,
11-8 the offense is punishable as a Class B [A] misdemeanor.
11-9 SECTION 7. This Act takes effect September 1, 2001.
11-10 SECTION 8. (a) As soon as practicable after the effective
11-11 date of this Act, the Department of Public Safety shall appoint a
11-12 technical advisory committee to assist the department in developing
11-13 the initial rules required for implementation of Subchapter N,
11-14 Chapter 601, Transportation Code, as added by this Act. The
11-15 technical advisory committee must include representatives of the
11-16 affected insurance companies and representatives of the Texas
11-17 Department of Transportation.
11-18 (b) The technical advisory committee shall prepare
11-19 recommended rules for consideration by the Department of Public
11-20 Safety not later than March 1, 2002.
11-21 (c) This section expires and the technical advisory
11-22 committee is abolished September 1, 2002.
11-23 SECTION 9. (a) Not later than September 1, 2002:
11-24 (1) the Department of Public Safety shall contract
11-25 with an entity to serve as the designated agent under Subchapter N,
11-26 Chapter 601, Transportation Code, as added by this Act; and
11-27 (2) the Department of Public Safety shall adopt any
12-1 rules necessary to implement Subchapter N, Chapter 601,
12-2 Transportation Code, as added by this Act.
12-3 (b) Except as provided by Subsection (c) of this section, a
12-4 motor vehicle insurance company is not required to report under
12-5 Section 601.445, Transportation Code, as added by this Act, before
12-6 September 1, 2002.
12-7 (c) The Department of Public Safety by rule may designate,
12-8 by market share, premium volume, or another similar characteristic,
12-9 smaller motor vehicle insurance companies that are not required to
12-10 report under Section 601.445, Transportation Code, as added by this
12-11 Act, before September 1, 2003.
12-12 (d) The Department of Public Safety is not required to
12-13 report under Sections 601.446(b) and (c), Transportation Code, as
12-14 added by this Act, before September 1, 2002.