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.