Texas House Bill HB641

Texas 2011 - 82nd Regular

• Out of House Committee: 5/2/11
• Report Pass: 4/27/11

Caption

Relating to insurance requirements for certain contract carriers.

Impact

The introduction of HB 641 could have far-reaching implications for the transportation industry within Texas. By imposing stricter insurance requirements, the bill aims to ensure that contract carriers are sufficiently insured to handle unforeseen events that could lead to financial losses for both passengers and third parties. This change may lead to higher operational costs for some carriers, potentially affecting their pricing structure and service availability. However, proponents of the bill argue that the safety benefits to the public justify these increased costs.

Summary

House Bill 641 is designed to amend the Transportation Code by establishing new insurance requirements specifically for contract carriers. The bill proposes several regulations that aim to enhance the operational safety and accountability of transportation providers. One of the prominent changes includes increasing the minimum liability insurance coverage that contract carriers must maintain from $1.5 million to $3 million for each vehicle. This significant increase is intended to better protect passengers and the general public from potential liabilities that may arise from accidents or incidents involving contract carriers.

Contention

While the bill has gained support among safety advocates and some lawmakers, there may be points of contention regarding the financial implications for smaller contract carriers. Critics argue that the higher insurance requirements could place an undue burden on these businesses, potentially driving some out of the market. There may also be concerns regarding the practical enforcement of these new regulations, particularly how the state would oversee compliance and handle violations. As discussions continue, balancing the need for public safety with the operational realities of the transportation sector will be a critical consideration.