HBA-NLM H.B. 130 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 130 By: McClendon Business & Industry 2/8/1999 Introduced BACKGROUND AND PURPOSE Currently, the Automobile Club Services Act of the Transportation Code does not authorize an automobile club to contract to reimburse members for expenses other than legal fees incurred in the defense of traffic offenses. The contract to reimburse members of an automobile club is viewed by the Office of the Attorney General as the business of insurance, which is not within the statutory authority of an automobile club. H.B.130 provides for the reimbursement to members of an automobile club for towing or emergency road assistance expenses and exempts this category of reimbursements from the insurance laws of the state. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 722, Transportation Code, by adding Section 722.0131, as follows: Sec. 722.0131. REIMBURSEMENT FOR CERTAIN EXPENSES. Authorizes an automobile club to contract with a member to reimburse the member for expenses incurred for towing or emergency road assistance. Establishes that reimbursements under this section are exempt from the application of the insurance laws of this state. SECTION 2. Emergency clause. Effective date: upon passage.