Pub. 61 2020-2021 Issue 4

11 SUMMER 2021 INSURANCE SB 1728 (Schwertner, Nichols, Powell/Canales) Alternatively Fueled Vehicle Fee Legislation, as introduced, would have created road use fee amounts for alternatively fueled vehicles based upon the vehicle class. TADA believes it is the right policy for alternatively fueled vehicles to pay some road usage fees. SB 1728 passed the Senate on April 23 and was set on the House General Calendar on May 24, but a point of order was called and sustained on the bill. The language was added to HB 3531, but that legislation didn’t pass either. SB 624/HB 1698 (Schwertner/Raney) Optional County Fee Legislation will expand counties that can charge an additional $10 fee if voters approve in a referendum election. TADA monitored this legislation but remained neutral. HB 1698 was filed without Governor Abbott’s signature on June 14 and becomes effective Sept. 1. SB 1538/HB 3960 (Menendez, Campbell/ Lambert) OEM Parts Legislation, as introduced, would require insurers to use OEM parts, products, and repair processes if the motor vehicle has an unexpired original manufacturer’s warranty. As amended in the Senate, legislation moved away from tying this to a warranty period and instead provided for a definitive period of 36 months. The amended language also provided for the insured to opt-in to the use of non- OEM parts within the 36 months and made it unlawful for an insurer to require that a repair person or facility use a specific percentage of non-OEM parts. SB 1538 passed out of Senate Business and Commerce Committee 9-0 and the Senate 26-5 but never received a hearing in House Insurance. SB 1706/HB 2534 (Blanco/Clardy) Appraisal Procedure Legislation, as introduced, would have required appraisal procedures for personal automobile insurance policies. TADA supported this legislation in the House Transportation Committee. HB 2534 passed out of the House on the last night to pass House bills but never received a Senate Business & Commerce hearing. SB 1170/HB 1787 (Menendez/Lambert) Loaner Insurance Revision Legislation will remove the reference to a section in code that no longer exists and provided that the coverage for a temporary substitute vehicle does not extend to a person specifically identified in a named driver exclusion. TADA supported HB 1787 in both the House Insurance Committee and the Senate Business & Commerce Committee. HB 1787 was signed into law by Governor Abbott on May 15 and becomes effective Sept. 1. HB 1131 (Clardy) Auto Body Shops Legislation, as introduced, would have prohibited certain insurer practices related to auto repair claims to ensure quality parts are used to make repairs in the body shops of the insured’s choice. TADA supported HB 1131 in the House Insurance Committee. HB 1131 was heard in House Insurance on April 13, but no further action was taken. HB 113 (Oliverson/Schwertner) Peer-to-Peer Car-Sharing Legislation will require that a peer-to-peer car-sharing program ensure the owner and driver are insured when a car’s use is shared peer to peer. TADA worked with the author’s office to ensure no issues impacted the coverage on a loaner vehicle. HB 113 was signed into law by Governor Abbott on June 9 and becomes effective Sept. 1.  LEGISLATIVE SESSION — CONTINUED ON PAGE 12