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Amend CSHB 3588 by inserting new ARTICLES 13, 14, 15 and 16 to
read as follows, and renumbering all subsequent ARTICLES as
appropriate:
ARTICLE 13. FINANCIAL RESPONSIBILITY REQUIREMENTS
SECTION 1.01. Chapter 601, Transportation Code, is amended
by adding Subchapters N and O to read as follows:
SUBCHAPTER N. DATABASE INTERFACE SYSTEM TO VERIFY
FINANCIAL RESPONSIBILITY
Sec. 601.450. FEASIBILITY STUDY. (a) The department and
the Texas Department of Insurance shall jointly conduct a study on
the feasibility, affordability, and practicability of using a
database interface software system for verification of whether
owners of motor vehicles have established financial responsibility
as required by this chapter. The study must include consideration
of whether the system:
(1) is likely to reduce the number of uninsured
motorists in this state;
(2) is likely to operate reliably;
(3) is cost-effective;
(4) will sufficiently protect the privacy of the motor
vehicle owners; and
(5) will sufficiently ensure the security and
integrity of each database to which it is applied.
(b) Before July 1, 2004, the department and the Texas
Department of Insurance shall complete the study and jointly issue
an order stating a determination of whether the system should be
implemented.
(c) If it is determined that the system should be
implemented, the department shall implement the system before
January 1, 2005, and Subchapter O and this section expire January 1,
2005. The department is not required to carry out the other
sections of this subchapter before the determination is made.
(d) If it is determined that the system should not be
implemented:
(1) the Texas Department of Transportation shall
implement Subchapter O before July 1, 2005; and
(2) this subchapter expires on the date of issuance of
the order stating the determination.
Sec. 601.451. IMPLEMENTATION OF SYSTEM; RULES. (a) The
department shall establish a database interface software system for
verification of whether owners of motor vehicles have established
financial responsibility.
(b) The department shall adopt rules to administer this
subchapter.
Sec. 601.452. AGENT. (a) The department, under a
competitive bidding procedure, shall select an agent to develop,
implement, operate, and maintain the system.
(b) The department and the Texas Department of Insurance
shall jointly enter into a contract with the selected agent.
(c) A contract under this section may not have a term of more
than 10 years.
Sec. 601.453. INFORMATION PROVIDED BY INSURANCE COMPANY;
PRIVACY. (a) Each insurance company providing motor vehicle
liability policies in this state shall allow the agent sufficient
access to its databases to allow the agent to carry out this
subchapter, subject to the agent's contract with the department and
the Texas Department of Insurance and rules adopted under this
subchapter.
(b) The agent may have access only to information determined
by the department and the Texas Department of Insurance to be
necessary to carry out this subchapter.
(c) Information obtained under this subchapter is
confidential. The agent may use the information only for a purpose
authorized under this subchapter and may not use the information
for a commercial purpose.
(d) A person commits an offense if the person knowingly uses
information obtained under this subchapter for any purpose not
authorized under this subchapter. An offense under this subsection
is a Class B misdemeanor.
SUBCHAPTER O. VERIFICATION OF COMPLIANCE WITH
AND ENFORCEMENT OF
FINANCIAL RESPONSIBILITY REQUIREMENTS
Sec. 601.501. DEFINITION. In this subchapter,
"verification date" means the date on which the Texas Department of
Transportation mails a written request to an owner of a motor
vehicle requiring the owner to state whether the owner has
established financial responsibility in accordance with Section
601.051(a).
Sec. 601.5015. LEASED VEHICLE. In applying the
requirements of the chapter to a situation in which the vehicle is
subject to a written lease which had an original term of one year or
longer and ther persona who has legal title to the vehicle does not
have actual physical possession of the vehicle at the time the
requirement applies, the requirements and fees of this chapter
otherwise applicable to an owner or to a person who holds legal
title to a vehicle or who owns the lease. However in that situation
the person who holds legal title to the vehicle shall promptly, upon
receipt from the Department or its designated agent of a request for
information about the motor vehicle and the owner's method of
establishing financial responsibility, provide to the Department
or its designated agent the name of the lessee and the last know
address of the lessee according to the titleholder's records. The
civil and criminal penalties of this chapter which otherwise are
applicable to owners or to a person who registers the vehicle or to
the vehicle shall not apply to an owner or the vehicle of an owner
which complies with this section, but shall instead apply to the
lessee, and the Department shall not terminate the registration of
an owner's vehicle which is subject to a lease described in this
section.
Sec. 601.502. VERIFICATION OF ESTABLISHMENT OF FINANCIAL
RESPONSIBILITY THROUGH RANDOM SAMPLING. (a) The Texas Department
of Transportation or an agent of that department shall randomly
select samples of registrations of motor vehicles subject to this
chapter, and may select samples of owners of motor vehicles subject
to this chapter, to verify whether an owner who is selected or whose
motor vehicle is selected has established financial responsibility
in accordance with Section 601.051(a). The Department of Public
Safety shall provide the Texas Department of Transportation access
to any information that will allow the Texas Department of
Transportation to comply with this subsection.
(b) A sample selected under this section may not be
classified on the basis of the owner's race, color, religion, sex,
national origin, age, marital status, physical or mental
disability, economic status, or geographic location.
(c) In addition to the general random sampling of motor
vehicle registrations, the Texas Department of Transportation may
randomly select other persons who own a registered motor vehicle to
verify that the person has established financial responsibility,
including a person:
(1) who, during the four-year period preceding the
date of selection, has been convicted of a violation of Section
601.191, 601.195, 601.196, as it existed before repeal, or 601.506,
including a violation that occurred while the person was operating
a motor vehicle owned by another person; or
(2) whose driver's license or motor vehicle
registration has been suspended during the four-year period
preceding the date of selection.
(d) The Texas Department of Transportation shall send to the
owner of a randomly selected motor vehicle, or to a randomly
selected motor vehicle owner, a request for information about the
motor vehicle and the owner's method of establishing financial
responsibility. The request must require the owner to state
whether the owner has, as of the verification date, established
financial responsibility in accordance with Section 601.051(a).
(e) The Texas Department of Transportation:
(1) shall adopt rules as necessary to implement this
subchapter; and
(2) by rule shall:
(A) establish the frequency of sample selection;
and
(B) prescribe:
(i) the methods employed for the random
selection of samples and the procedures necessary for
implementation of the verification process, including the method of
sending the verification request, which may include certified mail,
return receipt requested;
(ii) the form for verification of financial
responsibility; and
(iii) the information to be requested in the
prescribed form.
(f) The Texas Department of Transportation may require the
information provided by an owner to include a statement by the owner
that the owner had, as of the verification date, established
financial responsibility:
(1) through liability insurance under Subchapter D,
including:
(A) the name and address of the insurer;
(B) the number of the insurance policy; and
(C) the expiration date of the insurance
coverage;
(2) by filing a surety bond with the Department of
Public Safety under Section 601.121, including:
(A) the name and address of the company issuing
the bond;
(B) the identification number of the bond; and
(C) the expiration date of the bond;
(3) by depositing cash or securities with the
comptroller under Section 601.122, including a copy of the
certificate issued by the comptroller showing compliance;
(4) by depositing cash or a cashier's check with the
county judge of the county in which the motor vehicle is registered
under Section 601.123, including a copy of the certificate issued
by the county judge showing compliance; or
(5) through self-insurance under Section 601.124,
including a copy of the certificate of self-insurance issued by the
Department of Public Safety.
(g) Not later than the 30th day after the verification date,
the owner to whom the notice is sent shall furnish the requested
information to the Texas Department of Transportation in the form
prescribed by that department, accompanied by the owner's signed
affirmation that the information is true and correct.
(h) If the owner responds to the request for information by
asserting that the owner had, as of the verification date,
established financial responsibility in accordance with a method
authorized by Section 601.051(a), the Texas Department of
Transportation may conduct a verification investigation as
provided by Section 601.503.
Sec. 601.503. VERIFICATION INVESTIGATION. (a) To verify a
response received from an owner under Section 601.502, the Texas
Department of Transportation or an agent of that department may
furnish necessary information to the insurer, surety, or officer
named in the response. Not later than the 30th day after the date of
receipt of the information, the insurer, surety, or officer shall
inform the Texas Department of Transportation whether, as of the
verification date, financial responsibility had been established
for the affected motor vehicle in accordance with Section
601.051(a). An insurer that does not comply with this subsection is
subject to an administrative penalty under Chapter 84, Insurance
Code.
(b) If the response received from an owner under Section
601.502 states that financial responsibility has been established
through self-insurance, the Texas Department of Transportation
shall examine the records of the Department of Public Safety to
verify that a certificate of self-insurance has been issued in
accordance with Section 601.124.
Sec. 601.504. CIVIL PENALTY; WARNING NOTICE. (a) If an
owner responds under Section 601.502 that the owner has not
established financial responsibility or the owner fails to respond
in a timely manner, or if the Texas Department of Transportation
otherwise determines that an owner has registered or maintained the
registration of a motor vehicle without establishing financial
responsibility in accordance with Section 601.051(a):
(1) the owner is liable to the state for a civil
penalty of $100; and
(2) the Texas Department of Transportation shall mail
to the owner a warning stating that:
(A) the owner has 30 days after the date the
warning is sent to provide the evidence of financial
responsibility; and
(B) if the owner does not timely comply with
Paragraph (A), the registration of the motor vehicle will be
terminated.
(b) If an owner of a motor vehicle has not provided evidence
of financial responsibility to the Texas Department of
Transportation within the 30 days after the date the warning is
sent, the Texas Department of Transportation shall terminate the
registration for the motor vehicle.
(c) Each notice or warning sent under this section must
include, in English and Spanish, a clear and reasonably complete
statement of an owner's rights and responsibilities under this
chapter.
(d) From the civil penalties collected under this chapter,
the Texas Department of Transportation shall recover its costs in
implementing and administering the verification program under this
subchapter. The Texas Department of Transportation shall deposit
any amounts collected that exceed the administrative costs of that
department under this subchapter to the credit of the general
revenue fund.
Sec. 601.505. REGISTRATION OF MOTOR VEHICLE FOR WHICH
REGISTRATION TERMINATED. (a) Except as provided by Subsections
(b), (c), and (d), a motor vehicle for which registration is
terminated under Section 601.504(b) may not be registered unless
the owner submits with the application for registration:
(1) the $100 civil penalty provided by Section
601.504(a), if the civil penalty has not been previously paid; and
(2) the registration fee applicable to the vehicle and
any other fee required by law for registration of the vehicle.
(b) The Texas Department of Transportation shall reinstate
the terminated registration of a motor vehicle without payment of
any fee under Subsection (a)(2) if before the end of the
registration period during which the registration was terminated
the owner of the motor vehicle presents evidence of financial
responsibility that:
(1) complies with Section 601.051(a); and
(2) was in effect on the verification date and is in
effect on the date of application for reinstatement.
(c) Notwithstanding the terms of this subchapter:
(1) no lien attaches to a vehicle as a result of a
violation of this subchapter;
(2) a person is not liable for a fine or penalty levied
under this section or Section 601.504 if the person did not own the
vehicle at the time the fine or penalty was levied; and
(3) neither a tax assessor-collector nor the Texas
Department of Transportation may refuse to register a vehicle on
the ground that a prior owner of the vehicle violated this
subchapter.
(d) The provisions of Subsection (c) are not available to:
(1) a person who received title to the vehicle as a
gift from the prior owner; or
(2) a person who received title to the vehicle from a
family member, unless the Texas Department of Transportation is
satisfied that the transfer is in good faith and not to defeat the
purpose of this subchapter.
Sec. 601.506. DISPLAY OF FALSE PROOF OF FINANCIAL
RESPONSIBILITY; OFFENSE. (a) A person commits an offense if the
person provides evidence of financial responsibility to a peace
officer, as defined by Article 2.12, Code of Criminal Procedure,
court, or officer of the court knowing that financial
responsibility has not been established as required under Section
601.051(a) or that the evidence of financial responsibility is
illegally altered, counterfeit, or otherwise invalid.
(b) If a peace officer issues a citation to a motor vehicle
operator for displaying invalid evidence of financial
responsibility, the officer shall confiscate the invalid evidence
of financial responsibility for presentation in court.
(c) An offense under this section is punishable by a fine of
not less than $250 or more than $450.
Sec. 601.507. USE OF AGENTS. The Texas Department of
Transportation may submit requests for proposals for contracts with
private vendors to perform the random sampling and the verification
investigations required under this subchapter as an agent of that
department. The Texas Department of Transportation may enter into
contracts as necessary to implement the use of agents.
Sec. 601.508. SEASONAL EXCEPTION FOR CERTAIN FARM VEHICLES.
(a) In this section, "road tractor," "truck-tractor," "farm
tractor," "farm trailer," and "farm semitrailer" have the meanings
assigned by Section 502.001.
(b) During a season when the vehicle is not in use, Section
601.051 does not apply to a road tractor, truck-tractor, farm
tractor, farm trailer, or farm semitrailer used exclusively to
transport seasonally harvested agricultural products or livestock
from the place of production to the place of processing, market, or
storage.
(c) The designated agent may send a notice under Section
601.444 to the owner of a vehicle to which this section applies only
during a season when the vehicle is in use.
(d) The department by rule shall provide a method of
determining the season when a vehicle to which this section applies
is in use.
SECTION 1.02. Section 502.104, Transportation Code, is
amended to read as follows:
Sec. 502.104. DISPOSITION OF CERTAIN SPECIAL FEES. Each
Monday a county assessor-collector shall send to the department an
amount equal to collections for the preceding week for:
(1) each transfer fee collected under Section 502.175;
and
(2) each fee collected under Section 502.169(b),
502.1715, or 502.279.
SECTION 1.03. Subchapter D, Chapter 502, Transportation
Code, is amended by adding Section 502.1715 to read as follows:
Sec. 502.1715. ADDITIONAL FEE FOR MOTOR VEHICLE FINANCIAL
RESPONSIBILITY VERIFICATION PROGRAM. (a) In addition to other
fees imposed for registration of a motor vehicle, at the time of
application for registration or renewal of registration of a motor
vehicle for which the owner is required to submit evidence of
financial responsibility under Section 502.153, the applicant
shall pay a fee of $1.
(b) Fees collected under this section shall be deposited to
the credit of the state highway fund. Subject to appropriation, the
money may be used by the department, the Texas Department of
Insurance, and the Texas Department of Transportation to carry out
Subchapters N and O, Chapter 601.
(c) The department and the Texas Department of Insurance
shall adopt rules and develop forms necessary to administer this
section.
SECTION 1.04. Section 601.051, Transportation Code, is
amended to read as follows:
Sec. 601.051. REQUIREMENT OF FINANCIAL RESPONSIBILITY. (a)
A person may not operate a motor vehicle in this state unless
financial responsibility is established for that vehicle through:
(1) a motor vehicle liability insurance policy that
complies with Subchapter D;
(2) a surety bond filed under Section 601.121;
(3) a deposit under Section 601.122;
(4) a deposit under Section 601.123; or
(5) self-insurance under Section 601.124.
(b) An owner of a motor vehicle may not permit another
person to operate the motor vehicle in this state unless financial
responsibility is established for that vehicle and evidenced
through a method described by Subsection (a).
SECTION 1.05. Section 601.191, Transportation Code, is
amended to read as follows:
Sec. 601.191. OPERATION OF MOTOR VEHICLE IN VIOLATION OF
FINANCIAL RESPONSIBILITY REQUIREMENTS [MOTOR VEHICLE LIABILITY
INSURANCE REQUIREMENT]; OFFENSE. (a) A person commits an offense
if the person operates a motor vehicle or permits another person to
operate a motor vehicle in violation of Section 601.051.
(b) Except as provided by Subsection [Subsections (c) and]
(d), an offense under this section is a misdemeanor punishable by a
fine of not less than $200 [$175] or more than $400 [$350].
(c) It is a defense to prosecution under this section that
the person charged with an offense produces in court satisfactory
evidence that, at the time of the alleged offense, the owner or
operator had established financial responsibility in accordance
with Section 601.051(a). [If a person has been previously
convicted of an offense under this section, an offense under this
section is a misdemeanor punishable by a fine of not less than $350
or more than $1,000.]
(d) If the court determines that a person who has not been
previously convicted of an offense under this section is
economically unable to pay the fine, the court may reduce the fine
to less than $200 [$175].
SECTION 1.06. Section 601.195, Transportation Code, is
amended by adding Subsection (c) to read as follows:
(c) It is a defense to prosecution under this section that
the person charged with an offense produces in court satisfactory
evidence that, at the time of the alleged offense, the owner or
operator had established financial responsibility in accordance
with Subchapter F or K, as applicable.
ARTICLE 14. UNINSURED AND UNDERINSURED
MOTORIST COVERAGE
SECTION 2.01. Article 5.06-1, Insurance Code, is amended to
read as follows:
Art. 5.06-1. UNINSURED OR UNDERINSURED MOTORIST COVERAGE.
(a) [(1)] No automobile liability insurance, [(]including
insurance issued through the Texas Automobile Insurance Plan
Association [pursuant to an Assigned Risk Plan established under
authority of Section 35 of the Texas Motor Vehicle
Safety-Responsibility Act)], covering liability arising out of the
ownership, maintenance, or use of any motor vehicle shall be
delivered or issued for delivery in this state unless coverage is
provided therein or supplemental thereto, [in at least the limits
described in the Texas Motor Vehicle Safety-Responsibility Act,]
under provisions prescribed by the commissioner [Board], for the
protection of persons insured thereunder who are legally entitled
to recover damages from owners or operators of uninsured or
underinsured motor vehicles because of bodily injury, sickness, or
disease, including death, or property damage resulting therefrom.
The coverages required under this Article shall not be applicable
where any insured named in the policy shall reject the coverage in
writing; provided that unless the named insured thereafter requests
such coverage in writing, such coverage need not be provided in or
supplemental to a renewal policy where the named insured has
rejected the coverage in connection with a policy previously issued
to the named insured [him] by the same insurer or by an affiliated
insurer.
(b) [(2)] For the purpose of these coverages:
(1) "Exemplary damages" has the meaning assigned by
Section 41.001, Civil Practice and Remedies Code.
(2) "Noneconomic damages" means damages other than
compensatory damages for pecuniary loss. The term includes damages
for physical pain and mental anguish, loss of consortium,
disfigurement, physical impairment, or loss of companionship and
society. The term does not include exemplary damages.
(3) "Uninsured [(a) the term "uninsured] motor
vehicle" shall, subject to the terms and conditions of such
coverage, be deemed to include an insured motor vehicle where the
liability insurer thereof is unable to make payment with respect to
the legal liability of its insured within the limits specified
therein because of insolvency.
(4) "Underinsured [(b) The term "underinsured] motor
vehicle" means an insured motor vehicle on which there is valid and
collectible liability insurance coverage with limits of liability
for the owner or operator which were originally lower than, or have
been reduced by payment of claims arising from the same accident to,
an amount less than the limit of liability stated in the
underinsured coverage of the insured's policy.
(c) The commissioner [Board] may, in the policy forms
adopted under Article 5.06 of this code, define "uninsured motor
vehicle" to exclude certain motor vehicles whose operators are in
fact uninsured.
(d) The portion of a policy form adopted under Article 5.06
of this code to provide coverage under this article shall include
provisions that, regardless of the number of persons insured,
policies or bonds applicable, vehicles involved, or claims made,
the total aggregate limit of liability to any one person who
sustains bodily injury or property damage as the result of any one
occurrence shall not exceed the limit of liability for these
coverages as stated in the policy and the total aggregate limit of
liability to all claimants, if more than one, shall not exceed the
total limit of liability per occurrence as stated in the policy; and
shall provide for the exclusion of the recovery of damages for
bodily injury or property damage or both resulting from the
intentional acts of the insured. The portion of a policy form
adopted under Article 5.06 of this code to provide coverage under
this article shall require that in order for the insured to recover
under the uninsured motorist coverages where the owner or operator
of any motor vehicle which causes bodily injury or property damage
to the insured is unknown, actual physical contact must have
occurred between the motor vehicle owned or operated by such
unknown person and the person or property of the insured.
(e) Except as provided by Subsection (f) of this article,
the [(3) The] limits of liability for bodily injury, sickness, or
disease, including death, shall be offered to the insured in
amounts not less than those prescribed in Chapter 601,
Transportation Code, [the Texas Motor Vehicle
Safety-Responsibility Act] and such higher available limits as may
be desired by the insured, but not greater than the limits of
liability specified in the bodily injury liability provisions of
the insured's policy.
(f) The named insured may elect to waive coverage under this
article for recovery of noneconomic and exemplary damages resulting
from bodily injury, sickness, or disease, including death. If an
insured elects to waive coverage under this subsection, Subsection
(e) of this article does not apply to the limits of liability that
are applicable to the coverage provided under the policy issued to
the insured for damages resulting from bodily injury, sickness, or
disease, including death. The commissioner by rule may adopt
minimum limits of liability applicable to those damages. Waiver of
coverage under this subsection does not affect the insured's right
to bring an action for noneconomic and exemplary damages against a
responsible party. A written rejection of coverage for noneconomic
and exemplary damages is not effective unless the insurer provides
the insured with a written notice, acknowledged in writing by the
insured at the time of the rejection, disclosing the amount of
potential coverage that is available, the types of damages that
would be covered, and the amount of premium saved because the
coverage is rejected.
(g) [(4)(a)] Coverage for property damage shall be offered
to the insured in amounts not less than those prescribed in Chapter
601, Transportation Code, [the Texas Motor Vehicle
Safety-Responsibility Act] and such higher available limits as may
be desired by the insured, but not greater than limits of liability
specified in the property damage liability provisions of the
insured's policy, subject to a deductible amount of $250.
(h) [(b)] If the insured has collision coverage and
uninsured or underinsured property damage liability coverage, the
insured may recover under the policy coverage chosen by the
insured. In the event neither coverage is sufficient alone to cover
all damage resulting from a single occurrence, the insured may
recover under both coverages. When recovering under both
coverages, the insured shall designate one coverage as the primary
coverage and pay the deductible applicable to that coverage. The
primary coverage must be exhausted before any recovery is made
under the secondary coverage. If both coverages are utilized in the
payment of damages from a single occurrence, the insured shall not
be required to pay the deductible applicable to the secondary
coverage when the amount of the deductible otherwise applicable to
the secondary coverage is the same as or less than the amount of the
deductible applicable to the primary coverage. If both coverages
are utilized in the payment of damages from a single occurrence and
the amount of the deductible otherwise applicable to the secondary
coverage is greater than the amount of the deductible applicable to
the primary coverage, the insured shall be required to pay in
respect of the secondary coverage only the difference between the
amount of the two deductibles. In no event shall the insured
recover under both coverages more than the actual damages suffered.
(i) [(5)] The underinsured motorist coverage shall provide
for payment to the insured of all sums which the insured [he] shall
be legally entitled to recover as damages from owners or operators
of underinsured motor vehicles because of bodily injury or property
damage in an amount up to the limit specified in the policy, reduced
by the amount recovered or recoverable from the insurer of the
underinsured motor vehicle. If the named insured has waived
coverage under Subsection (f) of this article for recovery of
noneconomic and exemplary damages, the amount paid to the insured
may not include any amount attributable to noneconomic and
exemplary damages.
(j) [(6)] In the event of payment to any person under any
coverage required by this article [Section] and subject to the
terms and conditions of such coverage, the insurer making such
payment shall, to the extent thereof, be entitled to the proceeds of
any settlement or judgment resulting from the exercise of any
rights of recovery of such person against any person or
organization legally responsible for the bodily injury, sickness or
disease, or death for which such payment is made, including the
proceeds recoverable from the assets of the insolvent insurer;
provided, however, whenever an insurer shall make payment under a
policy of insurance issued pursuant to this article [Act], which
payment is occasioned by the insolvency of an insurer, the insured
of said insolvent insurer shall be given credit in any judgment
obtained against the insured [him], with respect to the insured's
[his] legal liability for such damages, to the extent of such
payment, but, subject to Section 12 of Article 21.28-C of this code,
such paying insurer shall have the right to proceed directly
against the insolvent insurer or its receiver, and in pursuance of
such right such paying insurer shall possess any rights which the
insured of the insolvent company might otherwise have had if the
insured of the insolvent insurer had made the payment.
(k) [(7)] If a dispute exists as to whether a motor vehicle
is uninsured, the burden of proof as to that issue shall be upon the
insurer.
(l) [(8)] Notwithstanding Section 15.032, Civil Practice and
Remedies Code, an action against an insurer in relation to the
coverage provided under this article, including an action to
enforce that coverage, may be brought only:
(1) [(a)] in the county in which the policyholder or
beneficiary instituting the suit resided at the time of the
accident; or
(2) [(b)] in the county in which the accident involving
the uninsured or underinsured motor vehicle occurred.
ARTICLE 15. PROOF OF INSURANCE CARDS
SECTION 3.01. Subchapter A, Chapter 5, Insurance Code, is
amended by adding Article 5.06-7 to read as follows:
Art. 5.06-7. FORM AND APPEARANCE OF PROOF OF MOTOR VEHICLE
LIABILITY INSURANCE. (a) The commissioner shall prescribe by rule
a standard appearance and form for a card issued by an insurer as
proof of motor vehicle liability insurance prescribed by Section
601.081, Transportation Code.
(b) In prescribing the appearance of a proof of motor
vehicle liability insurance card under Subsection (a) of this
article, the commissioner shall require an appearance that is:
(1) difficult to alter, duplicate, or counterfeit; and
(2) not cost-prohibitive for consumers.
ARTICLE 16. EFFECTIVE DATE
SECTION 4.01. This Act takes effect September 1, 2003.