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79R2951 JD-F

By:  Chisum                                                       H.B. No. 2844



A BILL TO BE ENTITLED
AN ACT


relating to authorizing the Texas Department of Public Safety to 
enter into contracts for the periodic reporting of certain 
information in the department's driver's license files to certain 
other persons.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 521, Transportation Code, 
is amended by adding Section 521.059 to read as follows:
	Sec. 521.059.  CONTRACTS FOR DISCLOSURE OF CERTAIN 
INFORMATION.  (a)  The department may enter into a contract with a 
person to provide the person with certain information from the 
department's driver's license files if:
		(1)  the person:                                                       
			(A)  is an insurer, an insurance support 
organization, or an entity that self-insures its motor vehicles; 
and
			(B)  is eligible to receive the information under 
Chapter 730; and  
		(2)  the information is requested in connection with 
automobile insurance rating or underwriting of existing automobile 
insurance policies.
	(b)  Information provided under Subsection (a) must:                    
		(1)  be authorized to be released under Section 521.045 
or 521.046; and
		(2)  relate to the current license status of 
individuals, traffic law convictions of individuals, or 
suspension, revocation, or denial actions in connection with 
individuals' driver's licenses that occur during the period 
specified in the contract.
	(c)  A contract entered into under this section must be for a 
term of not less than one year, provide for monthly monitoring, and 
require:
		(1)  the person who will receive a report from the 
department under the contract to:
			(A)  provide the department with a list containing 
the driver's license number or the full name and date of birth of 
each individual about whom information is requested;
			(B)  agree to purchase the three-year driving 
record of each individual included in a report received from the 
department;
			(C)  agree not to disclose to any third person, 
except for disclosure by an insurance support organization to an 
insurer it supports for the purpose of rating or underwriting an 
existing automobile insurance policyholder, all or part of the 
three-year driving record received from the department or the fact 
that a person is included in a report from the department; and
			(D)  disclose to the department, on a quarterly 
basis, for purposes of revenue projecting by the department and the 
establishing and monitoring by the department of a revenue 
guarantee baseline for the person, the receiving entity's prior, 
current, and projected future driving record ordering practices in 
relation to existing automobile insurance policyholders; and
		(2)  the department to:                                                
			(A)  search the department's driver's license 
databases to determine which of the individuals on the list 
submitted have had a conviction, suspension, or revocation activity 
posted during the period specified in the contract; and
			(B)  provide a report to the person who submitted 
the list of the name, date of birth, and driver's license number of 
the driver.
	(d)  The fee for a report provided by the department under 
Subsection (c) is $6 for each group of 100 individuals.  The fee for 
the report is in addition to the fee for each three-year driving 
record provided by the department with the report under Section 
521.046 or 521.055, as applicable.
	(e)  The department may require a person entering into a 
contract with the department under this section to provide the 
department with a certified check, cashier's check, or bond issued 
by a surety company authorized to do business in this state in an 
amount equal to the first payment due under the contract so as to:
		(1)  guarantee the person's performance under the 
contract; and      
		(2)  reimburse the department if the revenue received 
by the department from the person's purchase of driving record 
information under the contract is less than the revenue guarantee 
baseline established under Subsection (c)(1)(D).
	(f)  To the fullest extent practicable, the services of the 
department under a contract entered into under this section shall 
be provided by, through, or in conjunction with the interactive 
system established under Section 521.055.
	(g)  For purposes of this section, an existing automobile 
insurance policyholder is a person who:
		(1)  is currently provided automobile insurance 
coverage by an insurer; and
		(2)  was included in a report previously purchased by 
that insurer under Section 521.046.
	(h)  The department may enter into a limited number of 
contracts under this section on a trial basis to determine the 
fiscal impact of such a contract.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.