HBA-MPM H.B. 1935 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1935 By: Lewis, Glenn Insurance 4/6/1999 Introduced BACKGROUND AND PURPOSE The Motor Vehicle Safety Responsibility Act was enacted to increase the number of motorists purchasing liability insurance. This number has not increased since its enactment. Additionally, the imposition of a mandatory fine and/or confinement in county jail may pose an economic hardship to those who already cannot afford the liability insurance. H.B. 1935 repeals aspects of the Motor Vehicle Safety Responsibility Act and makes conforming changes. 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. Repeals the following: (1) Sections 502.153, 521.143, and 548.105, Transportation Code (Evidence of Financial Responsibility, Evidence of Financial Responsibility Required, and Evidence of Financial Responsibility as Prerequisite to Issuance of Inspection Certificate, respectively) (2) Sections 601.051, 601.052, and 601.053, Transportation Code (Requirement of Financial Responsibility, Exceptions to Financial Responsibility Requirement, and Evidence of Financial Responsibility). (3) Subchapters G, H, and I, Chapter 601, Transportation Code (Failure to Maintain Motor Vehicle Liability Insurance or Otherwise Establish Financial Responsibility; Criminal Penalties, Failure to Maintain Evidence of Financial Responsibility; Suspension of Driver's License and Motor Vehicle Registration, and Failure to Maintain Evidence of Financial Responsibility; Impoundment of Motor Vehicle, respectively). SECTION 2. Amends Subchapter C, Chapter 601, Transportation Code, as follows: SUBCHAPTER C. New title: EVIDENCE OF FINANCIAL RESPONSIBILITY. Deletes "requirements" from title. SECTION 3. Amends Section 601.293(c), Transportation Code, to require the magistrate to order a person to provide evidence that the person is exempt from the requirements of this chapter under Section 601.007 (Applicability of Chapter to Government Vehicles), Insurance Code, rather than the requirement of Section 601.051, Insurance Code, as repealed by this Act, if the magistrate determines that there is a reasonable possibility that a judgment will be rendered against the person for bodily injury, death, or property damage sustained in an accident. SECTION 4. Amends Section 601.296(a), Transportation Code, to require the Department of Public Safety (department) to issue a certificate of release of an impounded vehicle to the owner, operator, or person authorized by the owner on submission to the department of evidence of financial responsibility showing that at the time of the accident the vehicle was covered by financial responsibility meeting the requirements of this chapter, rather than financial responsibility under Section 601.053, Insurance Code, as repealed by this Act, or that the person was exempt from the requirements of this chapter under Section 601.007, Insurance Code, rather than Section 601.051, Insurance Code, as repealed by this Act. SECTION 5. Amends Section 502.352(c), Transportation Code, by authorizing a person to obtain a permit under this section, among other means, by furnishing to the county assessor-collector, the department, or the department's wire service agent, evidence that financial responsibility for the vehicle has been established that complies with Subchapter D, Chapter 601, Insurance Code, rather than Section 502.153(e) and Section 601.168(a) (Insurance Policy or Bond; Limits), as repealed by this Act, Insurance Code, and that is written by an insurance company or surety company authorized to write motor vehicle liability insurance in this state. Makes nonsubstantive changes. SECTION 6. Amends Section 502.353(d), Transportation Code, to authorize a person to obtain a permit under this section by furnishing evidence that financial responsibility has been established for the motor vehicle that complies with Subchapter D, Chapter 601, rather than Sections 502.153(e), as repealed by this Act and Section 601.168(a), the policies to be written by an insurance company or surety company authorized to write motor vehicle liability insurance in this state. SECTION 7. Amends Section 521.249(b), Transportation Code, to delete the requirement that the department issue an occupational license to a person after compliance with Chapter 601, Insurance Code. SECTION 8. Amends Section 600.002, Transportation Code, to require the driver of a vehicle to produce a driver's license only, rather than a driver's license and proof of compliance with Chapter 601, Insurance Code, on demand of a peace officer within 250 feet of the Mexican border at a checkpoint authorized by Section 411.0095 (Access to Criminal History Record Information; Consumer Credit Commission), Government Code. Makes conforming and nonsubstantive changes. SECTION 9. Amends Section 729.001(a), Transportation Code, to delete Chapter 601, Insurance Code, from a list under which a person younger than 17 years of age commits an offense if operating a motor vehicle on a public road or highway, street or alley in a municipality, or a public beach. SECTION 10. Amends Section 84.004(c), Civil Practice and Remedies Code, to provide that a volunteer of a charitable organization is liable to a person for death, damage, or injury to the person or the person's property proximately caused by an Act or omission arising from the operation or use of any motor-driven equipment, including an airplane, to the extent, for a motor vehicle, of the limits of liability required to establish financial responsibility under Section 601.072, Insurance Code, rather than insurance coverage required by Chapter 601, Insurance Code, and to the extent of any existing insurance coverage applicable to the act or omission. SECTION 11. Amends Section 61.096(b), Human Resources Code, to provide that a volunteer is liable for personal injury, death, or property damage proximately caused by an act or omission related to the operation or use of any motor-driven equipment to the extent of the greater of the limits of liability required to establish financial responsibility, rather than the amount of financial responsibility required, for the motor-driven equipment, if any, under Section 601.072, Insurance Code, rather than Chapter 601, Insurance Code. SECTION 12. Amends Section 157.042(d), Local Government Code, to provide that liability coverage required under this section must be in amounts equal to or greater than the limits of liability required to establish financial responsibility under Section 601.072, Insurance Code, rather than the amounts required by Chapter 601, Insurance Code, as repealed by this Act. SECTION 13. Amends Section 1(3), Article 21.81, Insurance Code, to redefine "insurance" as a motor vehicle liability insurance policy, rather than an insurance policy, meeting the requirements of Subchapter D, Chapter 601, Transportation Code, rather than Article 670lh, V.T.C.S. (Texas Motor Vehicle Safety Responsibility Act). SECTION 14. Amends Section 4(a), Article 21.81, Insurance Code, to require the Texas Automobile Insurance Plan Association (association) to provide a means by which insurance may be assigned to an authorized insurance company for a person who is eligible for insurance under this article, rather than for a person required by Article 670lh, V.T.C.S. (Texas Motor Vehicle Safety Responsibility Act). SECTION 15. Amends Section 3(d), Article 21.81, Insurance Code, to require the commissioner of insurance (commissioner) to notify the governing committee in writing so that the committee may take corrective action if the commissioner at any time believes that any part of the plan of operation is not in keeping with the purposes of Chapter 601, Transportation Code, rather than Article 670lh, V.T.C.S. (Texas Motor Vehicle Safety Responsibility Act). SECTION 16. Makes the change in law made by this Act to Sections 601.293 and 601.296, Transportation Code, prospective to the impoundment and release of a motor vehicle impounded under Subchapter J, Chapter 601, Transportation Code. SECTION 17. Makes a change in law made by this Act prospective to the punishment for an offense committed on or after the effective date of the Act. SECTION 18. Makes a change in law made by this Act to Section 84.004(c), Civil Practice and Remedies Code, and Section 61.096(b), Human Resources Code, prospective to a cause of action accruing on or after the effective date of the Act. SECTION 19. Makes a change in law made by SECTIONS 13-15 of this Act prospective to an insurance policy delivered, issued for delivery, or renewed on or after the effective date of this Act. SECTION 20. Effective date: January 1, 2000. SECTION 21. Emergency clause.