Untitled Texas Attorney General Opinion
GA-1068
| Tex. Att'y Gen. | Jul 2, 2014Background
- Attorney General of Texas issues formal opinion to Bandera County regarding the Motor Vehicle Safety Responsibility Act (Texas Transportation Code) and section 601.123 deposit mechanics.
- Question concerns (i) additional deposits for a second vehicle or multiple drivers, (ii) appropriate deposit account, and (iii) ownership of any interest and potential administrative fees.
- Subsection 601.051(4) authorizes a cash deposit with the county judge under 601.123; 601.123(b) sets a minimum deposit of $55,000 for each vehicle.
- Each vehicle requires its own deposit unless financial responsibility is established for that vehicle by another authorized method.
- 601.054(a) allows evidence of financial responsibility for an additional driver only if the driver is an employed operator or a member of the owner’s immediate family/household, otherwise the additional driver must establish responsibility by an authorized method.
- The funds deposited with the county judge are not court registry funds; the county judge may place them in a separate county depository account, and the depositor retains the interest; the county may not charge an administrative fee without statutory authority.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is an extra deposit required for a second vehicle or additional drivers? | Lindig argues for possible need of extra deposits. | Abbott concludes separate $55,000 deposits per vehicle; 601.054(a) limits who may be covered by another's coverage. | Separate deposit required per vehicle; additional driver may be covered only if within 601.054(a). |
| Where should the deposited funds be placed? | Lindig questions special account or court registry deposit. | Attorney General advises county depository; not court registry funds; no special registry requirement. | Funds may be deposited in a separate county depository account at the county judge's discretion. |
| Who owns the interest earned on deposited funds and can the county collect an administrative fee? | Lindig seeks to know if interest or an administrative fee accrues to the county. | Interest follows the principal and belongs to the depositor; no authorized basis to collect a county administrative fee for this deposit. | Interest belongs to the depositor; no administrative fee authorized absent statutory authority. |
Key Cases Cited
- National County Mut. Fire Ins. Co. v. Johnson, 879 S.W.2d 1 (Tex. 1993) (establishes purpose of the Act to protect claimants in auto accidents)
- Phillips v. Washington Legal Found., 524 U.S. 156 (S. Ct. 1998) (general rule: interest follows principal)
- Sellers v. Harris Cnty., 483 S.W.2d 242 (Tex. 1972) (regarding handling of funds and related principles)