By: Flynn H.B. No. 2884
A BILL TO BE ENTITLED
AN ACT
relating to suspending a vehicle registration for the failure to
establish financial responsibility; imposing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 601, Transportation Code,
is amended by adding Sections 601.235 and 601.236 to read as
follows:
Sec. 601.235. SUSPENSION OF MOTOR VEHICLE REGISTRATION BY THE
TEXAS DEPARTMENT OF MOTOR VEHICLES. (a) The Texas Department of
Motor Vehicles may access the records of the Texas Department of
Insurance and the Department of Public Safety to perform its duties
under this section.
(b) The Texas Department of Motor Vehicles, using its own
records, the records of the Texas Department of Insurance, and the
records of the Department of Public Safety, shall verify quarterly
whether owners of motor vehicles have established financial
responsibility under this chapter.
(c) If the Texas Department of Motor Vehicles determines
that the owner of a motor vehicle has not established the financial
responsibility required by this chapter, that department shall send
a notice to the owner:
(1) requiring the owner to submit the evidence
required under Section 502.046 to the Texas Department of Motor
Vehicles before the 45th day after the date the notice is sent; and
(2) warning the owner that the Texas Department of
Motor Vehicles will suspend the owner's vehicle registration if the
owner does not comply with Subdivision (1).
(d) If the owner does not comply with Subsection (c)(1), the
Texas Department of Motor Vehicles shall suspend the owner's
vehicle registration and mail a notice to the owner in a timely
manner that states that the owner's vehicle registration is
suspended.
(e) A suspension under Subsection (d) continues until the
owner:
(1) submits evidence of financial responsibility
required under Section 502.046; and
(2) pays an administrative fee of $200.
(f) The Texas Department of Motor Vehicles shall adopt rules
to implement this section.
(g) Information obtained under this section is confidential
and may be used only for a purpose authorized by this section and
may not be used for a commercial purpose. The information may be
shared with counties.
(h) A person commits an offense if the person knowingly uses
information obtained under this section for any purpose not
authorized by this section. An offense under this subsection is a
Class B misdemeanor.
Sec. 601.236. AGENT.(a) The Texas Department of Motor
Vehicles, under a competitive bidding procedure, shall select an
agent to develop, implement, operate, and maintain the financial
responsibility verification program under Section 601.235.
(b) A contract under this section may not have a term of more
than eight years.
SECTION 2. The Texas Department of Motor Vehicles shall
select an agent required by Section 601.236, Transportation Code,
as added by this Act, before December 31, 2015. The department shall
adopt rules as required by Section 601.235, Transportation Code, as
added by this Act, not later than seven months before the full
implementation of the program under that section. The department
shall require full implementation of the program for vehicles
covered under a personal automobile insurance policy before
December 31, 2016, and implementation of that program for vehicles
covered under a commercial insurance policy when the department
determines that implementation for vehicles covered under a
commercial insurance policy is feasible.
SECTION 3. This Act takes effect September 1, 2015.