BILL ANALYSIS
Senate Research Center H.B. 1018
79R11097 JD-D By: Noriega, Melissa (Ellis)
AUTHOR'S/SPONSOR'S STATEMENT OF INTENT
Under current state law, a motor carrier is required to maintain liability insurance in an amount set by the Department of Transportation (TxDOT). TxDOT is prohibited from setting the amount of liability insurance required at a level higher than the amount required for a motor carrier under a federal regulation adopted under 49 U.S.C. Section 13906(a)(1). According to 43 T.A.C. Section 18.16(a)(1), "buses designed or used to transport more than 15 passengers (including the driver) must maintain a minimum liability insurance of $5 million." According to the Texas Association of Private Bus Owners, most bus owners charge parents between $6 and $20 per week per child to transport their children to and from school. However, to meet the $5 million insurance requirement, the bus owners would need to charge parents between $30 and $50 per week per child.
H.B. 1018 creates minimum liability insurance amounts for certain school buses.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 643.101(b), Transportation Code, to make a conforming change.
SECTION 2. Amends Subchapter C, Chapter 643, Transportation Code, by adding Section 643.1015, as follows:
Sec. 643.1015. AMOUNT REQUIRED FOR CERTAIN SCHOOL BUSES. (a) Sets forth school buses to which this section applies.
(b) Requires the owner of a school bus to maintain liability insurance in the amount of at least $500,000.
(c) Defines "school bus."
SECTION 3. Amends Section 643.103(a), Transportation Code, to make a conforming change.
SECTION 4. Effective date: upon passage or September 1, 2005.