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).