By: Flynn H.B. No. 2884

A BILL TO BE ENTITLED

AN ACT

relating to suspending a vehicle registration for the failure to establish financial responsibility; imposing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter H, Chapter 601, Transportation Code, is amended by adding Sections 601.235 and 601.236 to read as follows:

Sec. 601.235. SUSPENSION OF MOTOR VEHICLE REGISTRATION BY THE TEXAS DEPARTMENT OF MOTOR VEHICLES. (a) The Texas Department of Motor Vehicles may access the records of the Texas Department of Insurance and the Department of Public Safety to perform its duties under this section.

(b) The Texas Department of Motor Vehicles, using its own records, the records of the Texas Department of Insurance, and the records of the Department of Public Safety, shall verify quarterly whether owners of motor vehicles have established financial responsibility under this chapter.

(c) If the Texas Department of Motor Vehicles determines that the owner of a motor vehicle has not established the financial responsibility required by this chapter, that department shall send a notice to the owner:

(1) requiring the owner to submit the evidence required under Section 502.046 to the Texas Department of Motor Vehicles before the 45th day after the date the notice is sent; and

(2) warning the owner that the Texas Department of Motor Vehicles will suspend the owner's vehicle registration if the owner does not comply with Subdivision (1).

(d) If the owner does not comply with Subsection (c)(1), the Texas Department of Motor Vehicles shall suspend the owner's vehicle registration and mail a notice to the owner in a timely manner that states that the owner's vehicle registration is suspended.

(e) A suspension under Subsection (d) continues until the owner:

(1) submits evidence of financial responsibility required under Section 502.046; and

(2) pays an administrative fee of $200.

(f) The Texas Department of Motor Vehicles shall adopt rules to implement this section.

(g) Information obtained under this section is confidential and may be used only for a purpose authorized by this section and may not be used for a commercial purpose. The information may be shared with counties.

(h) A person commits an offense if the person knowingly uses information obtained under this section for any purpose not authorized by this section. An offense under this subsection is a Class B misdemeanor.

Sec. 601.236. AGENT.(a) The Texas Department of Motor Vehicles, under a competitive bidding procedure, shall select an agent to develop, implement, operate, and maintain the financial responsibility verification program under Section 601.235.

(b) A contract under this section may not have a term of more than eight years.

SECTION 2. The Texas Department of Motor Vehicles shall select an agent required by Section 601.236, Transportation Code, as added by this Act, before December 31, 2015. The department shall adopt rules as required by Section 601.235, Transportation Code, as added by this Act, not later than seven months before the full implementation of the program under that section. The department shall require full implementation of the program for vehicles covered under a personal automobile insurance policy before December 31, 2016, and implementation of that program for vehicles covered under a commercial insurance policy when the department determines that implementation for vehicles covered under a commercial insurance policy is feasible.

SECTION 3. This Act takes effect September 1, 2015.