HBA-CMT H.B. 13 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 13
By: Corte
Civil Practices
4/23/2001
Introduced



BACKGROUND AND PURPOSE 

Current law requires that all drivers have proof of financial
responsibility.  This proof must be provided in order to renew a driver's
license, have a car inspected, or register a car.  However, many drivers
are circumventing the law by purchasing liability insurance in order to
renew a license or have a car inspected and then canceling the insurance.
The penalties for uninsured motorists are relatively minor and have done
little to ensure compliance with state law.  House Bill 13 limits the
amount of recovery a driver can receive for automobile injuries if the
driver was not able to show proof of financial responsibility at the time
of the accident, and if an uninsured or intoxicated driver is involved in
an accident, regardless of fault, the driver, can only recover economic
damages. 

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 92.002, Civil Practice and Remedies Code) of this bill. 

ANALYSIS

House Bill 13 amends the Civil Practice and Remedies Code to prohibit a
person from obtaining noneconomic damages or exemplary damages in a civil
action for bodily injury, death, or damage to or destruction of property
arising out of a motor vehicle accident if the person was at the time of
the accident operating a motor vehicle while intoxicated, and is convicted
of an offense of or relating to operating a motor vehicle while
intoxicated, or the person was knowingly operating the motor vehicle in
this state without established financial responsibility for the vehicle.
This provision does not apply to a person without financial responsibility
if the person was injured by another person who was at the time of the
accident operating a motor vehicle while intoxicated and convicted of an
offense of or relating to operating a motor vehicle while intoxicated.  The
provision that a person may not obtain noneconomic or exemplary damages
applies to a claim for damages made by a person whose right to recovery
derives from an injury to another person whose right to recovery would be
barred under the provisions of this bill, including a claim for wrongful
death or for loss of consortium or companionship.  The bill clarifies that
the provision does not prohibit the recovery of exemplary damages for a
wilful act or omission or gross neglect in a wrongful death action brought
by or on behalf of a surviving spouse or heirs of the decedent's body.    

H. B. 13 requires each insurer that issues a motor vehicle insurance policy
in this state to notify the person to whom the policy is issued of the
liability and damages provisions of this bill.  The notice of these
requirements must be made at the time the policy is initially issued and at
any time coverage under the policy is terminated.  The commissioner of
insurance by rule shall adopt the form and content of the required notice. 

H. B. 13 also requires the Department of Public Safety to post notice of
the liability and damages provisions of this bill.  The bill requires a
person who offers a driving safety course to notify each student in writing
of the liability and damages provisions of this bill.  The bill does not
prohibit a person who was operating a motor vehicle without financial
responsibility or while intoxicated from acting in a representative
capacity to bring suit on behalf of another person injured in the accident,
as next friend or otherwise.       
 
EFFECTIVE DATE

On passage.