HBA-TYH H.B. 3686 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3686 By: Flores Insurance 4/16/1999 Introduced BACKGROUND AND PURPOSE Currently, only uninsured motorists choosing to place security on file with the state to prevent a driver's license suspension or remove a license suspension are required to file proof of insurance on a policy that has been prepaid for at least a six month policy period. H.B. 3686 requires all motorists suspended as a result of operating a vehicle without insurance to present proof that they are currently insured. This includes uninsured motorists suspended for causing a motor vehicle accident as well as motorists cited by law enforcement officers for driving without insurance. This proof must be on a policy that has been prepaid for at least a six month policy period. Currently, only Section 601.162 (Duration of Suspension), Transportation Code, requires the proof of insurance to be maintained on file for two years. H.B. 3686 specifies that all proof of insurance certificates must be maintained on file for a period of two years. 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 601.056(b), Transportation Code, to delete Subdivision (3), which authorizes evidence of financial responsibility to be canceled, returned, or waived if the person surrenders the person's license and vehicle registration to the Department of Public Safety (department). SECTION 2. Amends Section 601.153, Transportation Code, as follows: Sec. 601.153. DEPOSIT OF SECURITY; EVIDENCE OF FINANCIAL RESPONSIBILITY. (a) Makes no change. (b) Provides that evidence of financial responsibility must be filed on a certificate of insurance, rather than the owner or operator chooses to establish financial responsibility by filing evidence of motor vehicle liability insurance, the owner or operator must file a certificate of insurance for a pre-paid policy that has a policy period of at least six months. (c) Prohibits coverage under a motor vehicle liability policy, for which a person files with the department a certificate of insurance, from being canceled unless two years have elapsed from the date of the accident. Makes a conforming change. SECTION 3. Amends Section 601.162, Transportation Code, to make conforming changes. SECTION 4. Amends Section 601.231, Transportation Code, to make a conforming change. SECTION 5. Amends Section 601.333, Transportation Code, to authorize a person whose driver's license, vehicle registration, or nonresident's operating privilege has been suspended or is subject to suspension to file with the department an affidavit from the insurance company stating that the person was insured at the time of the accident. Deletes requirement for the affidavit to state that the insurance company is liable to pay the judgment and the reason, if known, that the insurance company has not paid the judgment. SECTION 6. Amends Section 601.340, Transportation Code, to prohibit the department from suspending a vehicle registration if the person files and maintains, for two years from the date of conviction or forfeiture, evidence of financial responsibility with the department. SECTION 7. Amends Section 601.341, Transportation Code, to provide that evidence of financial responsibility must remain on file until the second anniversary of the date the judgment was rendered or second anniversary of the date of conviction. Makes conforming changes. SECTION 8. Amends Section 601.372, Transportation Code, to delete the requirement for the person to send the person's driver's license and vehicle registrations within 10 days of the date the person receives written notice of suspension of the individual's driver's license and vehicle registration from the department. Deletes the authorization for proof of the notice to be made by the certificate of a department employee stating that the employee delivered the notice in person. Deletes provision that a certificate stating delivery of notice in person must specify the name of the person to whom the notice was given and the time, place, and manner of the delivery of the notice. SECTION 9. Amends the Transportation Code to delete Section 601.373 (Failure to Return Driver's License or Vehicle Registration; Offense) which establishes failure to return a driver's license or vehicle registration as an offense punishable by a fine not to exceed $200. SECTION 10. Amends Section 601.376, Transportation Code, to change the fee for reinstatement of a driver's license, vehicle registration, or nonresident's operating privilege from $50 to $100. SECTION 11. Amends Section 601.409, Transportation Code, to make a conforming change. SECTION 12.Effective date: September 1, 1999. SECTION 13. Emergency clause. Effective date: upon passage.