HBA-LCA H.B. 2481 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2481 By: Jones, Jesse Urban Affairs 4/3/1999 Introduced BACKGROUND AND PURPOSE Currently, the state's larger municipalities place restrictions on which insurance companies a taxicab company within their jurisdictions may use. These restrictions may be unfair for small to mid-sized companies. H.B. 2481 regulates municipal requirements for taxicab insurance by requiring that taxicab companies purchase insurance from reliable insurers licensed to do business in Texas, and authorizes a municipality to ask for written certification of an insurer's reinsurance. 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 215.004, Local Government Code, by redesignating Subsection (c) as Subsection (f) and amending that subsection, and by adding new Subsections (c)-(e), as follows: (c) Provides that unless a taxicab transportation service is self-insured in compliance with state law, the insurance required under Subsection (b) (insurance) must be obtained from a reliable insurance company (insurer) licensed to do business in the state. Sets forth the conditions under which a municipality may find an insurer noncompliant with an ordinance adopted under Subsection (b). (d) Allows a municipality to require written certification that, for any portion of insurance in excess of 10 percent of the insurer's capital and surplus, the insurer has reinsurance for which credit may be taken under Article 5.75-1, Insurance Code (Reinsurance). (e) Provides that a municipality, unless as provided by Subsections (c) and (d), may not regulate, under this section or another general law, passenger taxicab transportation services with respect to the insurer's insuring a taxicab in the municipality. (f) Makes conforming changes. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.