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79R16319 DWS-D
By: Staples S.B. No. 1670
Substitute the following for S.B. No. 1670:
By: Phillips C.S.S.B. No. 1670
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 safeguard the security and
integrity of information provided by insurance companies;
(F) identify and employ a method of compliance
that improves public convenience; and
(G) provide information that is accurate and
current; and
(2) capable of being audited by an independent
auditor.
(b) The implementing agencies shall jointly adopt rules to
administer this subchapter.
(c) The implementing agencies shall convene a working group
to facilitate the implementation of the program, assist in the
development of rules, and coordinate a testing phase and necessary
changes identified in the testing phase. The working group must
consist of representatives of the implementing agencies and the
insurance industry and technical experts with the skills and
knowledge, including knowledge of privacy laws, required to create
and maintain the program.
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 for those policies 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 that is at
that time available from the insurance company and that is
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. 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 for noncommercial vehicles before
December 31, 2006, and implementation of that program for
commercial vehicles when the implementing agencies determine that
implementation for commercial vehicles is feasible.
SECTION 5. This Act takes effect September 1, 2005.