HBA-RAR H.B. 35 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 35
By: Corte
Civil Practices
4/20/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, Texas law requires all drivers to have liability insurance as
proof of financial responsibility.  This proof must be provided to renew a
driver's license, register a car, or have the car inspected, but nothing
prevents a driver from canceling the liability insurance afterwards and
thereby driving uninsured.  An uninsured driver involved in an accident not
of the driver's  fault can recover economic and noneconomic or exemplary
damages even though the driver is not in compliance with the law at the
time of the accident.  This legislation allows recovery of only economic
damages such as property damages, medical expenses, and lost wages for
drivers that are not in compliance with the law.  H.B. 35 prohibits a
person from recovering noneconomic or exemplary damages if the person was
in violation of the requirements of financial responsibility or was
convicted of being intoxicated while operating a vehicle at the time of the
accident.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of the Texas
Department of Insurance in SECTION 1 (Section 92.002, Civil Practice and
Remedies Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 4, Civil Practice and Remedies Code, by adding
Chapter 92, as follows: 

CHAPTER 92.  LIABILITY FOR CERTAIN MOTOR VEHICLE ACCIDENTS

 Sec. 92.001.  DEFINITIONS.  Defines "exemplary damages" and "noneconomic
damages." 

 Sec. 92.002.  LIABILITY FOR INJURY TO CERTAIN OPERATORS.  (a) Prohibits a
person from obtaining noneconomic damages or exemplary damages in a civil
action for bodily injury, death, or damage to property in a motor vehicle
accident if the person and was convicted of being intoxicated while
operating a motor vehicle at the time of the accident. Prohibits a person
from obtaining such damages if the person was knowingly operating the motor
vehicle in violation of Section 601.051, Transportation Code, regarding
requirements of financial responsibility. 

   (b) Provides that Subsection(a) does not apply to a person in violation
of  Section 601.051, Transportation Code, regarding requirements of
financial responsibility, if the person was injured by another person who
was convicted for operating a motor vehicle while intoxicated. 

  (c) Provides that Subsection(a) applies to a claim for damages  made by a
person with right to recovery derived from an injury to another person who
is in violation of Subsection (a), including a claim for wrongful death or
for loss of consortium or companionship, except as provided by Subsection
(d). 

  (d) Establishes that this section does not prohibit recovery of exemplary
damages for a wilful act or omission or gross neglect in a wrongful death
action brought by or in behalf  of a surviving spouse or heirs of the
decedent under a statute enacted pursuant to Section 26, Article XVI of the
Texas Constitution.  Provides that a claim for exemplary damages under this
subsection is governed by Chapter 41, Civil Practice and Remedies Code
(Exemplary Damages). 

  (e) Requires each insurer that issues a policy of motor vehicle insurance
in this state to notify the policyholder of the provisions of Subsections
(a)-(d) at the time of issuance or termination of the policy.  Requires the
commissioner of insurance to adopt, by rule, the form and  content of the
notice required under this subsection. 

  (f) Requires the Department of Public Safety to post notice of the
provisions of Subsections (a)-(d) at each facility at which an in-person
application for issuance or renewal of a license is made. 

  (g) Requires a  person who offers a driving safety course approved by the
Texas Education Agency to notify each student of the provisions of
Subsections (a)-(d). Requires the Texas Education Agency to adopt the form
and content of the notice required by this subsection. Provides that the
notice can be given separately or included with the course materials. 

  (h) Provides that this section does not prohibit a person described in
Subsection (a) from acting as a representative to bring suit on behalf of
another person injured in the accident.  
SECTION 2.  Makes the application of this Act prospective.

SECTION 3.  Emergency clause.
            Effective date:  upon passage.