HBA-NLM H.B. 130 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 130
By: McClendon
Business & Industry
2/8/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, the Automobile Club Services Act of the Transportation Code does
not authorize an automobile club to contract to reimburse members for
expenses other than legal fees incurred in the defense of traffic offenses.
The contract to reimburse members of an automobile club is viewed by the
Office of the Attorney General as the business of insurance, which is not
within the statutory authority of an automobile club. H.B.130 provides for
the reimbursement to members of an automobile club for towing or emergency
road assistance expenses and exempts this category of reimbursements from
the insurance laws of the state. 

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 Chapter 722, Transportation Code, by adding Section
722.0131, as follows: 

Sec. 722.0131. REIMBURSEMENT FOR CERTAIN EXPENSES. Authorizes an automobile
club to contract with a member to reimburse the member for expenses
incurred for towing or emergency road assistance.   Establishes that
reimbursements under this section are exempt from the application of the
insurance laws of this state. 

SECTION 2.  Emergency clause.
            Effective date:  upon passage.