HBA-MPM, MPA H.B. 2035 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2035
By: Hawley
Transportation
8/11/1999
Enrolled



BACKGROUND AND PURPOSE 

Commercial motor carriers operating in this state are required to maintain
worker's compensation coverage or accidental insurance coverage.  The
accidental insurance coverage must be purchased from a reliable insurance
company authorized to write accidental insurance policies in this state.
Surplus lines insurers are unauthorized insurers that are not licensed in
this state, but they meet eligibility requirements and otherwise comply
with the Insurance Code.  Prior to the 76th Legislature, the Texas trucking
industry could use surplus lines for liability insurance coverage but not
for accidental insurance.  H.B. 2035 allows for the use of surplus lines
insurers for accidental coverage. 

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 Section 643.106(a), Transportation Code, to require that
a motor carrier whose primary business is transportation for compensation
or hire between municipalities protect its employees by obtaining, among
other possibilities, approved accidental insurance coverage from a surplus
lines insurer under Article 1.14-2 (Surplus Lines Insurance), Insurance
Code. 

SECTION 2.  Provides that certain provisions of law enacted by the 75th
Legislature (Section 4, Chapter 1061, Acts of the 75th Legislature, Regular
Session, 1997) are recaptured for the purposes of this Act.  Provides that
this Act prevails over another Act of the 76th Legislature relating to
nonsubstantive additions and corrections in enacted code. 

SECTION 3.Emergency clause.
  Effective date: upon passage.