HBA-CCH H.B. 1700 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1700 By: Gutierrez Insurance 2/23/2001 Introduced BACKGROUND AND PURPOSE While the Texas Legislature has considered methods to increase the compliance of Texas residents with the Texas Motor Vehicle Safety Responsibility Act, little attention has been given to the impact of uninsured motorists entering Texas along the Texas-Mexico border. Any reduction in the number of uninsured motorists on Texas highways and roadways may yield benefits to all Texas residents. House Bill 1700 authorizes the commissioner of insurance to establish a program to provide for the sale of short-term liability insurance to motorists entering Texas from Mexico. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the commissioner of insurance in SECTION 1 (Section 2, Article 5.01c, Insurance Code) of this bill. ANALYSIS House Bill 1700 amends the Insurance Code to authorize the commissioner of insurance (commissioner), by rule, to establish a program to provide for the sale of short-term liability insurance policies to motorists entering Texas at the Texas-Mexico border crossings and to increase the availability of the policies. The bill authorizes the commissioner to negotiate an agreement with any insurer to sell short-term liability polices, and provides that a person representing an insurer in selling the policies must be licensed. The bill also provides that an insurer must use the policy forms adopted by the commissioner unless the insurer is exempt from using those forms. EFFECTIVE DATE September 1, 2001.