BILL ANALYSIS



H.B. 1819
By: Luna
03-28-95
Committee Report (Unamended)


BACKGROUND

In October 1993, the State Board of Insurance adopted an amendment
to the Texas Automobile Rules and Rating Manual, Rule 74.E.,
"Driver Credits."  This amendment provides for a 5% discount to
consumers who participate in an alcohol and drug abuse driving
awareness course.  This rule also directed the Texas Commission on
Alcohol and Drug Abuse (TCADA) to certify and approve the driving
awareness courses and the instructors. The TCADA has used its
general authority to enact the program, but there is not a statute
in the Health and Safety Code mandating this. All of the other
TCADA programs have specific mandates. Having this in the Code will
prevent a possible challenge from the reimbursing insurance
companies.

PURPOSE

H.B. 1819 grants the TCADA a mandate to certify and approve the
alcohol and drug driving awareness programs, as directed by the
State Board of Insurance in its Texas Rules and Rating Manual, Rule
74.E., "Driver Credits."

RULEMAKING AUTHORITY

It is the committee's opinion that this bill expressly grants
additional rulemaking authority to the TCADA in Section 2 (Section
461.0134(b), Health and Safety Code).

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 461.012(a) of the Health and Safety Code
as follows:

     Subsection (a): A technical clarification divides paragraph
     (15) into paragraphs (15)     and (16), and renumbers the
     ensuing paragraphs accordingly. Adds paragraph (18), which
     requires the TCADA to approve alcohol and drug abuse driving
     awareness programs in accordance with Section 461.0134 (added
     by this Act).

SECTION 2. Adds Section 461.0134, entitled "ALCOHOL AND DRUG ABUSE
DRIVING AWARENESS PROGRAMS" to the Health and Safety Code, as
follows:

     Subsection (a) requires the TCADA to approve any alcohol and
     drug abuse driving awareness program that allows individuals
     to become eligible for a premium discount for personal
     automobile insurance.

     Subsection (b) requires the TCADA to adopt rules governing
     such a program and its   providers, and to monitor, coordinate
     and provide training to individuals presenting the program.

     Subsection (c) allows the TCADA to charge an application fee
     for approval or renewal of a program.

     Subsection (d) provides that Section 461.0134 applies only if
     the Commissioner of      Insurance adopts rules requiring auto
     insurance premium discounts for the completion of this
     program.
SECTION 3. Emergency clause.
           Effective upon passage.

SUMMARY OF COMMITTEE ACTION

H.B. 1819 was considered by the Public Health Committee in a public
hearing on March 28, 1995.

The following person testified for the bill:
Representative Luna, author of the bill.

The bill was reported favorably without amendment with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, by a record vote of 7
Ayes, 0 Nays, 0 PNV, and 2 Absent.