HBA-TYH H.B. 2753 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2753 By: Smithee Insurance 4/9/1999 Introduced BACKGROUND AND PURPOSE During the 75th legislative session, H.B. 3563 established the procedures for issuing rental car companies limited licenses as insurance agents. The Texas Department of Insurance interprets the term "vehicle" to exclude rental trucks, small utility trailers, motor homes, and motorcycles. There are also other products offered by some general rental equipment dealers which have traditionally been covered by the same type of short-term optional insurance that are not included in the list of definitions in the Insurance Code. H.B. 2753 redefines "vehicles" and adds the definition of "vehicle equipment." This authorizes companies who rent rental trucks, small utility trailers, motor homes, and motorcycles, as well as certain types of vehicle equipment like cartop carriers, tow bars, and tow dollies, to obtain limited licenses as insurance agents under the Insurance Code. 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 Subsections (b), (f), (g), (i), and (j), Section 21, Article 21.07, Insurance Code, as added by Chapter 820, Acts of the 75th Legislature, 1997, to include in the definition of "vehicle" a motor home, a motorcycle, a trailer with a gross vehicle weight rating of 10,000 pounds or less, or a truck with a gross vehicle weight rating of 26,000 pounds or less, the operation of which does not require a commercial driver's license. Defines "vehicle equipment" as a cartop carrier, tow bar, or tow dolly specifically designed for use with a vehicle. Makes conforming and nonsubstantive changes. SECTION 2. Provides that the change in law made by this Act to Section 21, Article 21.07, Insurance Code, as added by Chapter 820, Acts of the 75th Legislature, 1997, does not affect the validity of a license issued under that section on or before the effective date of this Act. SECTION 3.Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 4. Emergency clause.