By: Staples S.B. No. 1670
(In the Senate - Filed March 11, 2005; March 30, 2005, read
first time and referred to Committee on Transportation and Homeland
Security; April 18, 2005, reported favorably by the following
vote: Yeas 8, Nays 0; April 18, 2005, sent to printer.)
A BILL TO BE ENTITLED
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
(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
(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
(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. Subsections (c) and (d), Section 502.1715,
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. Subsection (b), Section 502.1715,
Transportation Code, is repealed.
SECTION 4. The Department of Public Safety of the State of
Texas 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,
SECTION 5. This Act takes effect September 1, 2005.
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