HBA-RBT H.B. 72 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 72
By: Chavez
Insurance
2/8/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, a person must present proof of insurance to obtain or renew a
driver's license or register a vehicle.  Some individuals cancel the
insurance policy after receiving a license or registration. H.B. 72
requires the insurance company to report a policy cancellation to the
Department of Public Safety, which will then suspend the person's driver's
license. 

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 502.153, Transportation Code, by adding
Subsection (j), as follows: 

(j) Requires insurance companies to report an auto liability policy that
has been canceled or has expired to the Texas Department of Public Safety
(department).  Provides that the department will then suspend the owner's
driver's license until the policy is reinstated and proof of financial
responsibility for the registered vehicle can be verified. 

SECTION 2.  Effective date:  September 1, 1999.

SECTION 3.  Emergency clause.