79R13742 DWS-D


By:  Callegari, Hegar, Casteel, Miller,                           H.B. No. 2573
 
    Hamric, et al.                                                           

Substitute the following for H.B. No. 2573:                                   

By:  Phillips                                                 C.S.H.B. No. 2573



A BILL TO BE ENTITLED

AN ACT

relating to a motor vehicle financial responsibility verification 
program; providing a penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 601, Transportation Code, is amended by 
adding Subchapter N to read as follows:

SUBCHAPTER N.  FINANCIAL RESPONSIBILITY VERIFICATION PROGRAM
	Sec. 601.451.  DEFINITION.  In this subchapter, 
"implementing agencies" means:
		(1)  the Texas Department of Transportation;                           
		(2)  the Texas Department of Insurance; and                            
		(3)  the Department of Information Resources.                          
	Sec. 601.452.  IMPLEMENTATION OF PROGRAM; RULES.  (a)  The 
Texas Department of Transportation in consultation with the other 
implementing agencies shall establish a program for verification of 
whether owners of motor vehicles have established financial 
responsibility.  The program established must be:
		(1)  the program most likely to:                                       
			(A)  reduce the number of uninsured motorists in 
this state;        
			(B)  operate reliably;                                                
			(C)  be cost-effective;                                               
			(D)  sufficiently protect the privacy of the motor 
vehicle owners;  
			(E)  sufficiently ensure the security and 
integrity of each database to which it is applied; and
			(F)  identify and employ a method of compliance 
that improves public convenience; and
		(2)  capable of being audited by an independent 
auditor.             
	(b)  The implementing agencies shall jointly adopt rules to 
administer this subchapter.
	Sec. 601.453.  AGENT.  (a)  The Texas Department of 
Transportation in consultation with the other implementing 
agencies, under a competitive bidding procedure, shall select an 
agent to develop, implement, operate, and maintain the program.
	(b)  The implementing agencies shall jointly enter into a 
contract with the selected agent.
	(c)  A contract under this section may not have a term of more 
than 10 years.
	Sec. 601.454.  INFORMATION PROVIDED BY INSURANCE COMPANY; 
PRIVACY.  (a)  Each insurance company providing motor vehicle 
liability insurance policies in this state shall provide necessary 
information or allow a chosen agent sufficient access to its 
databases to allow the agent to carry out this subchapter, subject 
to the agent's contract with the implementing agencies and rules 
adopted under this subchapter.
	(b)  The agent is entitled only to information determined by 
the implementing agencies to be necessary to carry out this 
subchapter.
	(c)  Information obtained under this subchapter is 
confidential.  The agent may use the information only for a purpose 
authorized under this subchapter and may not use the information 
for a commercial purpose.
	(d)  A person commits an offense if the person knowingly uses 
information obtained under this subchapter for any purpose not 
authorized under this subchapter.  An offense under this subsection 
is a Class B misdemeanor.
	SECTION 2.  Sections 502.1715(c) and (d), Transportation 
Code, are amended to read as follows:
	(c)  Fees [On or after August 31, 2005, fees] collected under 
this section shall be deposited to the credit of the state highway 
fund.  Subject to appropriation, the money may be used by [the 
Department of Public Safety,] the Texas Department of Insurance, 
the Department of Information Resources, and the department to 
carry out Subchapter N, Chapter 601.
	(d)  The [Department of Public Safety and the] Texas 
Department of Insurance, the Department of Information Resources, 
and the department shall jointly adopt rules and develop forms 
necessary to administer this section.
	SECTION 3.  Section 502.1715(b), Transportation Code, is 
repealed.           
	SECTION 4.  The Texas Department of Transportation shall 
select an agent required by Section 601.453, Transportation Code, 
as added by this Act, before December 31, 2005, and the agencies 
responsible for implementing Subchapter N, Chapter 601, 
Transportation Code, as added by this Act, shall require full 
implementation of the financial responsibility verification 
program under that subchapter before December 31, 2006.
	SECTION 5.  This Act takes effect September 1, 2005.