Bill Text: TX HB3737 | 2019-2020 | 86th Legislature | Engrossed


Bill Title: Relating to the administration of the financial responsibility verification program.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2019-05-15 - Left pending in committee [HB3737 Detail]

Download: Texas-2019-HB3737-Engrossed.html
  86R19772 AAF-F
 
  By: Lucio III H.B. No. 3737
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the administration of the financial responsibility
  verification program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 502.357(b), (c), and (d),
  Transportation Code, are amended to read as follows:
         (b)  Fees collected under this section shall be deposited to
  the credit of the state highway fund except that the comptroller
  shall provide for a portion of the fees to be deposited first to the
  credit of a special fund in the state treasury outside the general
  revenue fund to be known as the TexasSure Fund in a total amount
  that is necessary to cover the total amount appropriated to the
  department [Texas Department of Insurance] from that fund and for
  the remaining fees to be deposited to the state highway fund.  
  Subject to appropriations, the money deposited to the credit of the
  state highway fund under this section may be used by the Department
  of Public Safety to:
               (1)  support the Department of Public Safety's
  reengineering of the driver's license system to provide for the
  issuance by the Department of Public Safety of a driver's license or
  personal identification certificate, to include use of image
  comparison technology;
               (2)  establish and maintain a system to support the
  driver responsibility program under Chapter 708; and
               (3)  make lease payments to the master lease purchase
  program for the financing of the driver's license reengineering
  project.
         (c)  Subject to appropriation, fees collected under this
  section may be used by the Department of Public Safety, [the Texas
  Department of Insurance,] the Department of Information Resources,
  and the department to carry out Subchapter N, Chapter 601.
         (d)  The Department of Public Safety, [the Texas Department
  of Insurance,] the Department of Information Resources, and the
  department shall jointly adopt rules and develop forms necessary to
  administer this section.
         SECTION 2.  Section 601.451, Transportation Code, is amended
  to read as follows:
         Sec. 601.451.  DEFINITION. In this subchapter,
  "implementing agencies" means:
               (1)  the department;
               (2)  the Texas Department of Motor Vehicles; and
               (3)  [the Texas Department of Insurance; and
               [(4)]  the Department of Information Resources.
         SECTION 3.  Section 601.452(a), Transportation Code, is
  amended to read as follows:
         (a)  The Texas Department of Motor Vehicles [Insurance] in
  consultation with the other implementing agencies shall establish a
  program for verification of whether owners of motor vehicles have
  established financial responsibility. The program established must
  be:
               (1)  the program most likely to:
                     (A)  reduce the number of uninsured motorists in
  this state;
                     (B)  operate reliably;
                     (C)  be cost-effective;
                     (D)  sufficiently protect the privacy of the motor
  vehicle owners;
                     (E)  sufficiently safeguard the security and
  integrity of information provided by insurance companies;
                     (F)  identify and employ a method of compliance
  that improves public convenience; and
                     (G)  provide information that is accurate and
  current; and
               (2)  capable of being audited by an independent
  auditor.
         SECTION 4.  Section 601.453(a), Transportation Code, is
  amended to read as follows:
         (a)  The Texas Department of Motor Vehicles [Insurance] in
  consultation with the other implementing agencies, under a
  competitive bidding procedure, shall select an agent to develop,
  implement, operate, and maintain the program.
         SECTION 5.  Subchapter N, Chapter 601, Transportation Code,
  is amended by adding Section 601.455 to read as follows:
         Sec. 601.455.  ENFORCEMENT. The commissioner of insurance
  may, after notice and opportunity for hearing, take any action
  authorized under Chapters 82, 83, and 84, Insurance Code, or any
  other applicable law, against an insurance company that provides
  motor vehicle liability insurance policies in this state if the
  commissioner of insurance determines that the insurance company is
  in violation of or has failed to comply with Section 601.454 or
  rules adopted under this subchapter.
         SECTION 6.  Not later than January 1, 2020, the following are
  transferred from the Texas Department of Insurance to the Texas
  Department of Motor Vehicles:
               (1)  the powers, duties, functions, and activities of
  the Texas Department of Insurance relating to the establishment and
  operation of the financial responsibility verification program
  under Subchapter N, Chapter 601, Transportation Code;
               (2)  any obligations and contracts of the Texas
  Department of Insurance that are directly related to implementing a
  power, duty, function, or activity transferred under this section;
  and
               (3)  all property and records in the custody of the
  Texas Department of Insurance that are related to a power, duty,
  function, or activity transferred under this section and all funds
  appropriated by the legislature for that power, duty, function, or
  activity.
         SECTION 7.  Not later than the 60th day after the effective
  date of this Act, the Texas Department of Insurance and the Texas
  Department of Motor Vehicles shall enter into a memorandum of
  understanding that establishes a plan for the identification and
  transfer of the records, property, and unspent appropriations of
  the Texas Department of Insurance that are used for purposes of the
  department's powers and duties directly related to the
  establishment and operation of the financial responsibility
  verification program under Subchapter N, Chapter 601,
  Transportation Code.
         SECTION 8.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2019.
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