79R7420 DWS-D

By:  Callegari                                                    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 department;                                                   
		(2)  the Texas Department of Transportation;                           
		(3)  the Texas Department of Insurance; and                            
		(4)  the Department of Information Resources.                          
	Sec. 601.452.  IMPLEMENTATION OF PROGRAM; RULES.  (a)  The 
department 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; and
			(E)  sufficiently ensure the security and 
integrity of each database to which it is applied; 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 department 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 Department of Public Safety 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 September 1, 2006.
	SECTION 5.  This Act takes effect September 1, 2005.