SRC-AMY S.B. 1328 78(R) BILL ANALYSIS Senate Research Center S.B. 1328 By: Averitt Infrastructure Development and Security 3/27/2003 As Filed DIGEST AND PURPOSE Currently, the commercial vehicles from other states and countries that travel our roadways are required to have insurance. However, in some cases, owners of these vehicles have insurance with unreliable companies that cannot fully pay out damages. As proposed, S.B. 1328 requires any insurance required for a commercial motor vehicle to be obtained from reliable companies. This bill defines what constitutes reliable under this subsection. This bill exempts vehicles authorized to be self-insured. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 643.101, Transportation Code, by adding Subsection (d), as follows: (d) Requires any insurance required for a commercial motor vehicle to be obtained from a reliable insurance company authorized to do business in this state, unless state law permits the vehicle to be self-insured. Provides that an insurance company is deemed reliable under this subsection if it has 100 percent reinsurance for the portion of insurance required for a commercial motor vehicle in excess of 10 percent of the insurance company's capital and surplus, and if credit is allowed for such reinsurance under Article 5.75-1, Insurance Code (Reinsurance). SECTION 2. Effective date: September 1, 2003.