BILL ANALYSIS H.B. 773 By: Smithee 03-29-95 Committee Report (Unamended) BACKGROUND Currently under the Texas Driver and Traffic Safety Education Act (Article 4413(29c), Vernon's Texas Civil Statutes) a Texas motorist may take a driver's safety course for the dual purpose of receiving an insurance premium discount and the dismissal of an offense under Section 143A, Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes). PURPOSE As proposed, House Bill 773 would authorize the commissioner of insurance to adopt rules requiring a premium discount of an approved driving safety course and prohibits an insurer from granting the premium discount if an individual has submitted a certificate to obtain a dismissal of an offense under Section 143A, Uniform Act regulating Traffic on Highways. RULEMAKING AUTHORITY It is the committee's opinion that this bill does grant additional rulemaking authority to the insurance commissioner under SECTION 3 of this bill by amending Article 5.101-1A (a) and (b)of the Insurance Code. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 143A, Uniform Act Regulating Traffic on Highways (Article 6701d, V.T.C.S.) by adding Subsection (a-4) and amends Subsection (b) as follows: Subsection (a-4): A court may not accept a certificate of course completion unless the person submits the original or duplicate certificate issued by the driver training school. If a duplicate is submitted, the certificate must be accompanied by an affidavit stating the person has not submitted the certificate of course completion to a motor vehicle liability insurer. (b) Adds the provisions of Subsection (a-4) to this subsection. SECTION 2. Amends the Texas Driver and Safety Education Act (Article 4413(29c), V.T.C.S. by adding Section 9A as follows: Sec. 9A: (a) A driving school may issue a certificate of completion for a six hour course only if the student executes an affidavit stating the original certificate was lost, stolen, or has not been submitted to a court or motor vehicle liability insurer. (b) A duplicate uniform certificate must be clearly mark as a duplicate. SECTION 2. (continued) Sec. 9A: (c) A person commits a Class C misdemeanor if the person knowingly executes a false affidavit under Subsection (a) of this section. SECTION 3. Amends Subchapter A, Chapter, Insurance Code, by adding Article 5.101-1A: (a) The commissioner may adopt rules requiring a premium discount for the completion of a safety course approved by the Central Education Agency. The premium discount shall be determined by the commissioner. (b) An insurer may not apply the premium discount to an individual who completed the driving safety course for the purpose of obtaining a dismissal of a motor vehicle violation. The commissioner may adopt rules to implement this section SECTION 4. Effective Date SECTION 5. Emergency Clause SUMMARY OF COMMITTEE ACTION In accordance with House rules H.B. 773 was heard in a public hearing on March 29, 1995. The Chair laid out H.B. 773 and explained the bill. No one testified in support of, in opposition to, or neutrally on H.B. 773. The Chair recognized Representative Counts who moved the Committee report H.B. 773 as filed to the full House with the recommendation that it do pass and be printed. Representative G. Lewis seconded the motion and the motion prevailed by the following vote: AYES (7); NAYES (0); ABSENT (2); PNV (0).