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.