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.