By Davis of Harris H.B. No. 2938
77R7330 DWS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to enforcement of motor vehicle financial responsibility
1-3 requirements.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 601, Transportation Code, is amended by
1-6 adding Subchapters N and O to read as follows:
1-7 SUBCHAPTER N. MOTOR VEHICLE INSURANCE DATABASE
1-8 Sec. 601.421. ESTABLISHMENT OF DATABASE. The department
1-9 shall establish a motor vehicle insurance database to collect and
1-10 make available information provided under this subchapter relating
1-11 to expiration and cancellation of motor vehicle liability policies
1-12 provided in this state. The department may adopt rules necessary to
1-13 establish and operate the database.
1-14 Sec. 601.422. INSURANCE COMPANY NOTICE TO DEPARTMENT. Each
1-15 insurance company providing a motor vehicle liability policy in
1-16 this state shall notify the department if the policy is canceled or
1-17 expires and is not renewed. The insurance company may give the
1-18 notice by facsimile transmission, electronic mail, or certified
1-19 mail and shall send the notice not later than 48 hours after the
1-20 time of the cancellation or expiration. The notice must include the
1-21 information required by department rule.
1-22 Sec. 601.423. DEPARTMENT USE OF INFORMATION. (a) Not later
1-23 than 48 hours after the time the department receives a notice under
1-24 Section 601.422, the department shall enter the information in the
2-1 database.
2-2 (b) The department shall make the information in the
2-3 database available to law enforcement officers in the same manner
2-4 that information is available to those officers concerning a
2-5 person's previous motor vehicle offenses and outstanding warrants.
2-6 (Sections 601.424-601.450 reserved for expansion)
2-7 SUBCHAPTER O. FINANCIAL RESPONSIBILITY IN CONNECTION
2-8 WITH MOTOR VEHICLE SECURING LOAN
2-9 Sec. 601.451. APPLICABILITY. This subchapter applies to a
2-10 loan, including a retail installment transaction, secured by a
2-11 motor vehicle for which proof of financial responsibility is
2-12 required to be established under this chapter.
2-13 Sec. 601.452. SHOWING PROOF OF FINANCIAL RESPONSIBILITY TO
2-14 LIENHOLDER. (a) Each loan to which this subchapter applies must
2-15 include, in at least 10-point type, a provision that requires the
2-16 borrower to show the lienholder proof of financial responsibility
2-17 under this chapter not later than the 10th day after the date that
2-18 the lienholder requests the borrower to show the proof. A
2-19 lienholder may make a request under this section by facsimile
2-20 transmission, electronic mail, or certified mail.
2-21 (b) Failure of the borrower to timely show the proof is a
2-22 default on the loan, and the lienholder may:
2-23 (1) obtain insurance on the vehicle to satisfy the
2-24 requirements of this chapter and add the amount of the premiums to
2-25 the amount of the loan; or
2-26 (2) pursue the lienholder's other default remedies.
2-27 Sec. 601.453. INSURANCE COMPANY NOTICE TO LIENHOLDER. Each
3-1 insurance company providing a motor vehicle liability policy on a
3-2 vehicle subject to a loan to which this subchapter applies shall
3-3 notify each lienholder on the vehicle if the policy is canceled or
3-4 expires and is not renewed. The insurance company may give the
3-5 notice by facsimile transmission, electronic mail, or certified
3-6 mail and shall send the notice not later than 48 hours after the
3-7 time of the cancellation or expiration.
3-8 SECTION 2. Sections 601.191(b) and (c), Transportation Code,
3-9 are amended to read as follows:
3-10 (b) Except as provided by Subsections (c) and (d), an
3-11 offense under this section is a misdemeanor punishable by a fine of
3-12 not less than $175 or more than $500 [$350].
3-13 (c) If a person has been previously convicted of an offense
3-14 under this section, an offense under this section is a misdemeanor
3-15 punishable by:
3-16 (1) a fine of not less than $500 [$350] or more than
3-17 $1,000;
3-18 (2) confinement in jail for a term not to exceed six
3-19 months; or
3-20 (3) both the fine and confinement.
3-21 SECTION 3. This Act takes effect September 1, 2001.
3-22 SECTION 4. Subchapter O, Chapter 601, Transportation Code, as
3-23 added by this Act, applies only to a loan contract entered into on
3-24 or after the effective date of this Act.
3-25 SECTION 5. (a) The change in law made by this Act to Section
3-26 601.191, Transportation Code, applies only to an offense committed
3-27 on or after the effective date of this Act. For the purposes of
4-1 this section, an offense is committed before the effective date of
4-2 this Act if any element of the offense occurs before that date.
4-3 (b) An offense committed before the effective date of this
4-4 Act is governed by the law in effect when the offense was
4-5 committed, and the former law is continued in effect for that
4-6 purpose.