74R10220 DLF-F
By Clemons, Gutierrez, Allen, McCall, Stiles H.B. No. 149
Substitute the following for H.B. No. 149:
By Counts C.S.H.B. No. 149
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to motor vehicle insurance coverage and liability for
1-3 motor vehicle accidents; imposing civil and criminal penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The Insurance Code is amended by adding Chapter
1-6 27 to read as follows:
1-7 CHAPTER 27. MOTOR VEHICLE ACCIDENT COMPENSATION
1-8 AND COST CONTAINMENT
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Art. 27.01. DEFINITIONS. In this chapter:
1-11 (1) "Accidental injury" means a bodily injury,
1-12 sickness, or disease that is not intentionally caused by the
1-13 injured person and that arises out of the use of a motor vehicle.
1-14 The term includes a death resulting from the injury, sickness, or
1-15 disease.
1-16 (2) "Dependent" means a resident relative of a person
1-17 who receives financial or services support from that person.
1-18 (3) "Economic loss" means medical expenses, loss of
1-19 income from work, and replacement services loss incurred by an
1-20 injured person as the result of an accidental injury to the injured
1-21 person.
1-22 (4) "Highway" means the entire width between property
1-23 lines of a road, street, way, thoroughfare, or bridge in this state
2-1 that is not privately owned or controlled:
2-2 (A) some part of which is open to the public for
2-3 vehicular traffic; and
2-4 (B) over which the state has legislative
2-5 jurisdiction under its police power.
2-6 (5) "Injured person" means a person who sustains an
2-7 accidental injury.
2-8 (6) "Medical expenses" means reasonable expenses that
2-9 are incurred by an injured person, a parent or guardian on behalf
2-10 of an injured person who is a minor or who has a mental disability,
2-11 or a spouse on behalf of an injured person who is deceased, and
2-12 that are incurred for reasonable and necessary medical, surgical,
2-13 X-ray, dental, ambulance, hospital, medical rehabilitation, and
2-14 professional nursing services expenses. The term includes expenses
2-15 for eyeglasses, hearing aids, and prosthetic devices.
2-16 (7) "Medical rehabilitation services" means services
2-17 that are reasonably necessary and are designed to:
2-18 (A) reduce the disability and dependence of an
2-19 injured person; and
2-20 (B) restore the person, to the extent reasonably
2-21 possible, to the person's level of physical functioning before the
2-22 accidental injury.
2-23 (8) "Motorcycle" means each motor vehicle that has a
2-24 saddle for the use of the rider and is designed to propel itself
2-25 with not more than three wheels in contact with the ground.
3-1 The term does not include a tractor or any three-wheeled vehicle
3-2 equipped with a cab, seat, and seat belt and designed to contain
3-3 the operator of the vehicle in the cab.
3-4 (9) "Motor vehicle" means a self-propelled vehicle
3-5 designed for use on a highway. The term includes a trailer or
3-6 semitrailer designed for use with the self-propelled vehicle and a
3-7 vehicle propelled by electric power obtained from overhead wires
3-8 but not operated on rails. The term does not include:
3-9 (A) a traction engine;
3-10 (B) a road roller or grader;
3-11 (C) a tractor crane;
3-12 (D) a power shovel;
3-13 (E) a well driller; or
3-14 (F) an implement of husbandry.
3-15 (10) "Motor vehicle insurance" means insurance that
3-16 provides coverage for accidental injury resulting from the use of a
3-17 motor vehicle.
3-18 (11) "Motor vehicle insurer" means any insurer writing
3-19 motor vehicle insurance in this state, including:
3-20 (A) an insurance company;
3-21 (B) a mutual insurance company, including a
3-22 county mutual insurance company;
3-23 (C) a reciprocal insurance company or
3-24 interinsurance exchange; and
3-25 (D) a Lloyd's plan insurer.
4-1 (12) "Noneconomic loss" means a detriment other than
4-2 economic loss for which damages would be recoverable under the law
4-3 of this state in the absence of this chapter, including pain,
4-4 suffering, inconvenience, and mental anguish.
4-5 (13) "Occupying" means, in the context of occupying a
4-6 motor vehicle:
4-7 (A) to be in or on a motor vehicle; or
4-8 (B) to be engaged in the immediate act of
4-9 entering into or alighting from the motor vehicle.
4-10 (14) "Owner" means:
4-11 (A) the person in whose name a motor vehicle has
4-12 been registered; or
4-13 (B) if no registration is in effect at the time
4-14 of an accident involving the motor vehicle:
4-15 (i) the person holding legal title to the
4-16 motor vehicle; or
4-17 (ii) if the motor vehicle is the subject
4-18 of a security agreement or lease with the option to purchase, a
4-19 debtor or lessee who has the right to possess the vehicle.
4-20 (15) "Person" includes an individual, corporation,
4-21 organization, or any other legal entity.
4-22 (16) "Personal compensation coverage" means coverage
4-23 that provides first party benefits in accordance with Article
4-24 27.31(a) of this code.
4-25 (17) "Personal compensation insured" means a person
5-1 entitled to personal compensation benefits under Article 27.33 of
5-2 this code.
5-3 (18) "Replacement services loss" means expenses
5-4 reasonably incurred in obtaining ordinary and necessary services
5-5 from a person who is not a member of the injured person's
5-6 household.
5-7 (19) "Resident relative" means a person who is related
5-8 by blood, marriage, or adoption to an insured or an injured person
5-9 and who:
5-10 (A) resides in the same household as the insured
5-11 or injured person; or
5-12 (B) temporarily resides in a place other than
5-13 the household of the insured or injured person, but who usually
5-14 makes a home in the same family unit.
5-15 Art. 27.02. COVERAGE REQUIRED. (a) A person may not
5-16 operate a motor vehicle other than a motorcycle on a highway in
5-17 this state unless:
5-18 (1) the motor vehicle is covered by motor vehicle
5-19 insurance that complies with this chapter; or
5-20 (2) the person is a named insured or a resident
5-21 relative of a named insured on a policy of motor vehicle insurance
5-22 that complies with this chapter.
5-23 (b) A person who violates this article is subject to the
5-24 limitations imposed by Article 27.112 of this code.
5-25 Art. 27.03. RULES. The commissioner may adopt rules for the
6-1 administration of this chapter.
6-2 Art. 27.04. CONSTRUCTION OF NONCONFORMING POLICIES. In any
6-3 controversy regarding the terms of a motor vehicle insurance
6-4 policy, a motor vehicle insurance policy that is delivered, issued
6-5 for delivery, or renewed in this state shall be construed to comply
6-6 with this chapter.
6-7 Art. 27.05. ARBITRATION. (a) A dispute between a motor
6-8 vehicle insurer and a personal compensation insured or a
6-9 beneficiary under a motor vehicle insurance policy shall be
6-10 submitted to arbitration under this article on the request of
6-11 either party.
6-12 (b) The parties to the arbitration shall attempt to agree on
6-13 the selection of an impartial arbitrator as soon as possible after
6-14 the request for arbitration is made. If the parties do not agree
6-15 on the selection of an arbitrator before the 11th day after the
6-16 date of the request for arbitration, the insurer shall request a
6-17 list of seven qualified impartial arbitrators from the American
6-18 Arbitration Association or another nationally recognized
6-19 arbitration association that performs arbitrations. The parties
6-20 may agree to select one of the seven arbitrators on the list. If
6-21 they do not agree to select one of the listed arbitrators before
6-22 the sixth day after the date the list is received by both parties,
6-23 each party, starting with the insurer, shall alternate striking a
6-24 name from the list. The arbitrator whose name remains after six
6-25 names have been stricken from the list shall serve as arbitrator.
7-1 (c) The parties shall agree on a date for the arbitration.
7-2 If the arbitrator cannot begin the arbitration before the 16th day
7-3 after the date agreed to by the parties, either party, not later
7-4 than the second day after the party learns of that fact, may
7-5 require the selection of a new arbitrator in the manner provided by
7-6 Subsection (b) of this article.
7-7 (d) The commissioner shall adopt rules governing arbitration
7-8 conducted under this article. The rules must provide procedures to
7-9 protect the rights of the parties to procedural due process.
7-10 (e) The decision of the arbitrator may be appealed to a
7-11 court, which shall consider the issues of fact and law presented in
7-12 the dispute by trial de novo.
7-13 Art. 27.06. USE OF MOTOR VEHICLE. (a) For the purposes of
7-14 this chapter, a person is using a motor vehicle if the person is
7-15 operating or occupying the vehicle.
7-16 (b) For the purposes of this chapter, a person is not using
7-17 a motor vehicle if the person is not occupying the vehicle and the
7-18 person is:
7-19 (1) manufacturing the vehicle;
7-20 (2) selling the vehicle;
7-21 (3) loading or unloading the vehicle; or
7-22 (4) maintaining the vehicle, including repairing,
7-23 servicing, or washing the vehicle.
7-24 Art. 27.07. UNITED STATES AS OWNER. This chapter does not
7-25 apply to the United States as an owner of a motor vehicle except
8-1 with respect to motor vehicles for which the United States has
8-2 elected to provide insurance.
8-3 Art. 27.08. DISCOVERY. In a dispute between a claimant and
8-4 an insurer regarding discovery of facts about an injured person, a
8-5 court of record may enter an order for discovery as justice
8-6 requires, unless the dispute is referred to arbitration under
8-7 Article 27.05 of this code.
8-8 Art. 27.09. DECLARATORY JUDGMENT. (a) The validity of this
8-9 chapter or any part of this chapter may be determined in an action
8-10 for declaratory judgment in a district court in Travis County under
8-11 Chapter 37, Civil Practice and Remedies Code.
8-12 (b) An appeal of a declaratory judgment, including an appeal
8-13 to the supreme court, holding this chapter or a portion of this
8-14 chapter valid or invalid under the state or federal constitution is
8-15 an accelerated appeal governed by Rule 42, Texas Rules of Appellate
8-16 Procedure.
8-17 SUBCHAPTER B. PERSONAL COMPENSATION COVERAGE
8-18 Art. 27.21. PERSONAL COMPENSATION COVERAGE REQUIRED. A
8-19 motor vehicle insurance policy delivered, issued for delivery, or
8-20 renewed in this state must provide coverage that complies with
8-21 Article 27.31 of this code.
8-22 Art. 27.22. BENEFITS PAYABLE WITHOUT REGARD TO FAULT. A
8-23 benefit under personal compensation coverage is payable without
8-24 regard to the fault of the personal compensation insured in the
8-25 accident that caused the injury.
9-1 Art. 27.23. OUT-OF-STATE CLAIMS AND COVERAGE. (a) A motor
9-2 vehicle insurance policy must provide personal compensation
9-3 coverage for the accidental injury of a personal compensation
9-4 insured that is sustained within the United States, the territories
9-5 or possessions of the United States, or Canada.
9-6 (b) If a motor vehicle covered under a motor vehicle
9-7 insurance policy is in an accident in another jurisdiction, the
9-8 policy must provide at least the minimum amount of insurance
9-9 coverage required by the laws of that jurisdiction.
9-10 (c) A motor vehicle insurer transacting business in this
9-11 state must file with the commissioner, as a condition of its
9-12 continued transaction of business in this state, a form approved by
9-13 the commissioner stating that any contract of primary motor vehicle
9-14 insurance, wherever issued, covering the use of a motor vehicle
9-15 while the motor vehicle is in this state, provides personal
9-16 compensation and minimum bodily injury and property damage
9-17 liability insurance at levels required by the law of this state. A
9-18 nonadmitted insurer may also file this form.
9-19 SUBCHAPTER C. COVERAGE
9-20 Art. 27.31. PERSONAL COMPENSATION BENEFITS, DEATH BENEFIT,
9-21 AND LIABILITY COVERAGE. (a) A motor vehicle insurance policy must
9-22 provide at least $50,000 in first party personal compensation
9-23 benefits for each covered person in any one accident. A motor
9-24 vehicle insurer shall make available to prospective insureds
9-25 coverage that provides at least $200,000 in first party personal
10-1 compensation benefits for each covered person in any one accident.
10-2 Benefits under this subsection include the following benefits for
10-3 loss resulting from accidental injury to a personal compensation
10-4 insured:
10-5 (1) medical expenses, subject to a deductible in one
10-6 of the amounts specified by Subsection (c) of this article,
10-7 applicable only to claims of the named insured and of a resident
10-8 relative of the named insured;
10-9 (2) loss of income from work as computed under Article
10-10 27.40 of this code, not to exceed $200 per week; and
10-11 (3) replacement services loss, not to exceed $100 per
10-12 week.
10-13 (b) A motor vehicle policy must provide a death benefit in
10-14 the amount of $5,000 for the death of a person entitled to first
10-15 party benefits under this subchapter. The death benefit required
10-16 by this subsection is in addition to first party benefits payable
10-17 as a result of the use of the motor vehicle and is payable to the
10-18 estate of the deceased.
10-19 (c) The commissioner shall promulgate motor vehicle
10-20 insurance policies that meet the requirements of Subsections (a)
10-21 and (b) of this article and that are subject to a per person
10-22 deductible as described by Subsection (a)(1) of this article in the
10-23 amount of:
10-24 (1) $0;
10-25 (2) $100; or
11-1 (3) $1,000.
11-2 (d) Each motor vehicle insurer shall offer each of the
11-3 policies described by Subsection (c) of this article.
11-4 Art. 27.32. OTHER COVERAGE. A motor vehicle insurer may
11-5 make available personal compensation insurance that provides
11-6 benefits in addition to and different from the benefits described
11-7 by Article 27.31(a) of this code.
11-8 Art. 27.33. COVERED PERSONS. Personal compensation coverage
11-9 provides benefits for:
11-10 (1) any person identified by name as an insured under
11-11 the personal compensation insurance policy;
11-12 (2) any resident relative of the first person
11-13 identified by name as an insured under the policy;
11-14 (3) any person who sustains an accidental injury in
11-15 this state:
11-16 (A) while occupying a motor vehicle insured by
11-17 the policy; or
11-18 (B) through being struck by a motor vehicle
11-19 insured by the policy; and
11-20 (4) a person for whom coverage is provided under
11-21 Article 27.131(b) of this code.
11-22 Art. 27.34. PERSONS EXCLUDED FROM COVERAGE. (a) Except as
11-23 provided by Subsection (b) of this article, a motor vehicle
11-24 insurance policy may not provide personal compensation coverage for
11-25 a person who is injured while:
12-1 (1) committing a felony;
12-2 (2) voluntarily using a motor vehicle that the injured
12-3 person knows is stolen;
12-4 (3) driving while intoxicated;
12-5 (4) using a motor vehicle owned by, or furnished or
12-6 available for the regular use of, the injured person or the injured
12-7 person's resident relative, if the motor vehicle is not described
12-8 in the policy under which a claim is made and is not a newly
12-9 acquired or replacement motor vehicle covered under the terms of
12-10 the policy;
12-11 (5) using a motor vehicle that is not covered by motor
12-12 vehicle insurance that meets the requirements of this chapter, if
12-13 the injured person is not a named insured or a resident relative of
12-14 a named insured; or
12-15 (6) guilty of intentional misconduct.
12-16 (b) A motor vehicle insurance policy may include personal
12-17 compensation coverage for a person mentioned in this article only
12-18 if language clearly manifesting an intent to provide that coverage
12-19 is included in the policy.
12-20 (c) In this article:
12-21 (1) "Intentional misconduct" means an act or omission
12-22 by an injured person that causes or substantially contributes to
12-23 harm and that the actor commits for the purpose of causing harm or
12-24 knowing that harm is substantially certain to follow. An act or
12-25 omission is not intentional misconduct:
13-1 (A) solely because the act was intentional or
13-2 committed with the knowledge that the act creates a grave risk of
13-3 causing harm; or
13-4 (B) if committed for the purpose of averting
13-5 bodily harm to any person.
13-6 (2) "Intoxicated" has the meaning assigned by Section
13-7 49.01, Penal Code.
13-8 (d) For purposes of this article, if a peace officer
13-9 requests that an injured person submit to a test of blood, breath,
13-10 or urine in connection with the accident, the person shall be
13-11 considered to have been driving while intoxicated at the time of
13-12 the accident if the person:
13-13 (1) refuses to submit to the test;
13-14 (2) does not submit to the test and does not expressly
13-15 agree to submit to the test; or
13-16 (3) refuses to complete the test.
13-17 Art. 27.35. MEDICAL EXPENSE BENEFIT PAYMENT LIMITS. (a) A
13-18 person may not require, request, or accept a payment for a
13-19 treatment, accommodation, product, or service for an injured person
13-20 who is a personal compensation insured if the amount of the payment
13-21 exceeds the amount authorized by this article.
13-22 (b) Payment for a treatment, accommodation, product, or
13-23 service may not exceed the provider's usual and customary charge.
13-24 (c) This article does not require payment of pass-through
13-25 costs.
14-1 Art. 27.36. PAYMENT FOR PRIVATE ROOM EXCLUDED. The medical
14-2 expense benefit under personal compensation coverage does not
14-3 include any portion of a charge for a room in a hospital, clinic,
14-4 convalescent or nursing home, extended care facility, or any
14-5 similar facility in excess of the reasonable and customary charge
14-6 for semi-private accommodations, unless a private accommodation is
14-7 determined to be medically required.
14-8 Art. 27.37. PAYMENT FOR EXPERIMENTAL TREATMENT, SERVICE,
14-9 PRODUCT, OR PROCEDURE EXCLUDED. The medical expense benefit under
14-10 personal compensation coverage does not include payment for a
14-11 treatment, service, product, or procedure that is:
14-12 (1) experimental in nature;
14-13 (2) for research or not primarily designed to serve a
14-14 medical purpose; or
14-15 (3) not commonly and customarily recognized throughout
14-16 the medical profession and within the United States as appropriate
14-17 for treatment of the injury.
14-18 Art. 27.38. MEDICAL EXPENSE BENEFIT; LIMITATION. The
14-19 medical expense benefit under personal compensation coverage is not
14-20 payable for medical expenses that accrue after the second
14-21 anniversary of the date of the accident.
14-22 Art. 27.39. REVIEW OF MEDICAL EXPENSES. A motor vehicle
14-23 insurer may review medical expenses before, during, and after the
14-24 course of treatment of an injured person to ensure that the
14-25 expenses are reasonable and necessary.
15-1 Art. 27.40. COMPUTATION OF LOSS OF INCOME BENEFIT;
15-2 LIMITATION. (a) The benefit for loss of income from work under
15-3 personal compensation coverage is equal to 80 percent of the amount
15-4 of income the injured person would have earned through work during
15-5 the period of disability, less:
15-6 (1) income from substitute work actually performed by
15-7 the injured person; or
15-8 (2) income the injured person would have earned in
15-9 available appropriate substitute work which the injured person was
15-10 capable of performing but unreasonably failed to undertake.
15-11 (b) The loss of income from work benefit does not include
15-12 loss that accrues after the death of the injured person.
15-13 (c) The loss of income from work benefit is not payable
15-14 after the second anniversary of the date of the accident.
15-15 Art. 27.41. REPLACEMENT SERVICES BENEFIT; LIMITATION. (a)
15-16 An injured person is not entitled to the benefit for replacement
15-17 services under compensation coverage during a period in which the
15-18 person is receiving the benefit for loss of income from work.
15-19 (b) The replacement services benefit does not include loss
15-20 that accrues after the death of the injured person.
15-21 (c) The replacement services benefit is not payable for loss
15-22 that accrues after the second anniversary of the date of the
15-23 accident.
15-24 Art. 27.42. DEATH BENEFIT; LIMITATION. A death benefit
15-25 under personal compensation coverage may be paid only if the death
16-1 of an injured person occurs before the first anniversary of an
16-2 accidental injury that directly and proximately caused the death.
16-3 SUBCHAPTER D. PAYMENT OF PERSONAL COMPENSATION BENEFITS
16-4 Art. 27.51. PROMPT PAYMENT OF CLAIMS. Article 21.55 of this
16-5 code applies to payment of personal compensation benefits under
16-6 this subchapter.
16-7 Art. 27.52. PERSONS TO WHOM PAYMENT IS MADE. A motor
16-8 vehicle insurer shall pay personal compensation benefits, at the
16-9 option of the insurer, to:
16-10 (1) the injured person;
16-11 (2) the parent or guardian of the injured person, if
16-12 the injured person is a minor or is incompetent;
16-13 (3) a dependent, executor, or administrator of an
16-14 injured person who is deceased; or
16-15 (4) the person or organization rendering the services
16-16 for which payment is due.
16-17 Art. 27.53. VERIFICATION OF ENTITLEMENT TO BENEFITS;
16-18 EMPLOYER'S REPORT. (a) On request of an insurer providing
16-19 benefits under this chapter, an employer shall furnish pertinent
16-20 information regarding an employee who has filed a claim for
16-21 personal compensation benefits.
16-22 (b) Information provided under this article shall be
16-23 provided on a form approved by the commissioner.
16-24 Art. 27.54. VERIFICATION OF ENTITLEMENT TO BENEFITS; MEDICAL
16-25 REPORT; ACCESS TO MEDICAL DOCUMENTS. (a) On the request of an
17-1 insurer providing benefits under this chapter, a physician,
17-2 hospital, clinic, or other health care provider that, before or
17-3 after an accidental injury for which a claim is made, provides
17-4 products, services, treatments, procedures, or accommodations to
17-5 the injured person in relation to an injury, or in relation to a
17-6 condition that the injured person claims is connected with the
17-7 injury, shall furnish a written report to the insurer in accordance
17-8 with this article.
17-9 (b) A report made under this article must include the
17-10 injured person's medical history, condition, and treatment and the
17-11 dates and costs of the treatment.
17-12 (c) A physician, hospital, clinic, or other health care
17-13 provider shall promptly produce and permit the inspection and
17-14 copying of its records regarding the injured person's history,
17-15 condition, and treatment, and the dates and costs of treatment or
17-16 services.
17-17 (d) A person may not bring a cause of action against a
17-18 physician, hospital, clinic, or other health care provider for
17-19 complying with the provisions of this article. Section 5.08,
17-20 Medical Practice Act (Article 4495b, Vernon's Texas Civil
17-21 Statutes), does not apply to information provided under this
17-22 article.
17-23 (e) An insurer requesting a report or record under this
17-24 article shall pay all reasonable costs connected with providing the
17-25 report or record.
18-1 (f) This article does not authorize the disclosure of
18-2 information that is confidential under federal law.
18-3 SUBCHAPTER E. COORDINATION OF COVERAGE AND BENEFITS
18-4 Art. 27.61. PRIORITY FOR PAYMENT OF BENEFITS. (a) A person
18-5 who is entitled to personal compensation benefits is entitled to at
18-6 least the personal compensation coverage under a policy in which
18-7 the person is a named insured or the resident relative of a named
18-8 insured. The motor vehicle insurer shall pay personal compensation
18-9 benefits for the claims of the named insured or a resident relative
18-10 of the named insured before paying other claims arising from an
18-11 accident.
18-12 (b) If the limits of the personal compensation benefits for
18-13 the accident are not exhausted after payment of claims under
18-14 Subsection (a) of this article, the insurer shall pay personal
18-15 compensation benefits for the claims of other personal compensation
18-16 insureds.
18-17 (c) If more than one motor vehicle insurer is obligated to
18-18 pay personal compensation benefits, the insurer against whom the
18-19 claim is first made shall pay the claim. That insurer may recover
18-20 a pro rata contribution for the payment and processing of the claim
18-21 from any other motor vehicle insurer obligated to pay the benefits.
18-22 In recovering a contribution under this subsection, the insurer has
18-23 the same priority as the injured person would have had under this
18-24 article.
18-25 Art. 27.62. PARKED VEHICLES; EXCLUSION. For purposes of
19-1 determining whether a motor vehicle insurance policy provides
19-2 coverage for a personal compensation insured other than the named
19-3 insured or a resident relative of a named insured for a particular
19-4 accident, a motor vehicle described by the policy is not involved
19-5 in the accident if the vehicle is parked and unoccupied during the
19-6 accident, unless the manner in which the vehicle is parked causes
19-7 an unreasonable risk of injury.
19-8 Art. 27.63. MULTIPLE COVERAGES. (a) The policy limit for a
19-9 coverage or benefit under a personal compensation insurance policy
19-10 may not be added to, combined with, or otherwise stacked on the
19-11 policy limit for another coverage or benefit provided under that
19-12 policy or another policy to determine the total limit of coverage
19-13 available to an injured person for an accident. This subsection
19-14 applies notwithstanding the number of:
19-15 (1) motor vehicles involved in the accident;
19-16 (2) personal compensation insureds;
19-17 (3) claims made for the accident;
19-18 (4) motor vehicles or premiums shown on the policies;
19-19 or
19-20 (5) premiums paid.
19-21 (b) A policy may provide that if two or more policies apply
19-22 to the same accident, the highest policy limit for a coverage or
19-23 benefit applicable to the accident is the policy limit for that
19-24 coverage or benefit in the policy that provides the highest limit
19-25 for that coverage or benefit.
20-1 Art. 27.64. COLLATERAL SOURCES OF BENEFITS. (a) A motor
20-2 vehicle insurer shall pay personal compensation benefits to a
20-3 personal compensation insured, notwithstanding coverage other than
20-4 personal compensation coverage that provides benefits for the same
20-5 injury, except as provided by Subsection (b) of this article.
20-6 (b) The amount of personal compensation benefits is reduced
20-7 by the amount of a benefit paid under Subtitle A or C, Title 5,
20-8 Labor Code.
20-9 (c) Except as provided by Subsection (b) of this article,
20-10 coverage other than personal compensation coverage is excess
20-11 coverage for any accidental injury covered by a personal
20-12 compensation insurance policy.
20-13 SUBCHAPTER F. HEALTH CARE COST CONTAINMENT
20-14 Art. 27.71. COST CONTAINMENT PROVISIONS. The commissioner
20-15 may adopt rules under which a policy of motor vehicle insurance
20-16 issued under this chapter may contain cost containment provisions,
20-17 including provisions for:
20-18 (1) precertification of covered services;
20-19 (2) preauthorization for specified services;
20-20 (3) a second opinion before surgery;
20-21 (4) concurrent utilization review and management;
20-22 (5) discharge planning;
20-23 (6) large case management;
20-24 (7) coordination of benefits, if the provisions comply
20-25 with guidelines established by the National Association of
21-1 Insurance Commissioners; and
21-2 (8) managed care or point of service arrangements.
21-3 SUBCHAPTER G. RIGHTS AND DUTIES OF PERSONAL COMPENSATION
21-4 INSUREDS
21-5 Art. 27.91. ASSIGNMENT OR GARNISHMENT OF PERSONAL
21-6 COMPENSATION BENEFITS. (a) Personal compensation benefits, other
21-7 than those for medical expenses, are exempt from garnishment,
21-8 attachment, execution, and any other process or claim to the same
21-9 extent that wages or earnings are exempt under law.
21-10 (b) An agreement to assign a right to a personal
21-11 compensation benefit, other than a medical benefit, that is payable
21-12 in the future is unenforceable except to the extent that:
21-13 (1) the assignment compensates the assignee for a
21-14 product, service, or accommodation provided or to be provided by
21-15 the assignee; or
21-16 (2) the assignment is of benefits for loss of income
21-17 from work or replacement services and is assigned to pay alimony,
21-18 spousal maintenance, or child support.
21-19 Art. 27.92. CANCELLATION, NONRENEWAL, OR PREMIUM INCREASE
21-20 FOLLOWING CLAIM. (a) A motor vehicle insurer may not cancel,
21-21 refuse to renew, or increase the premium for a personal
21-22 compensation insurance policy because of a claim for personal
21-23 compensation benefits if a personal compensation insured was not at
21-24 fault in the accident from which the claim arose.
21-25 (b) A person may not bring a civil action for equitable
22-1 relief from or civil damages for a violation of this article.
22-2 Art. 27.93. ACTION FOR BENEFITS. Unless arbitration is
22-3 elected under Article 27.05 of this code, a person must bring an
22-4 action against a motor vehicle insurer for unpaid personal
22-5 compensation benefits:
22-6 (1) not later than the second anniversary of the date
22-7 that the accidental injury occurred; or
22-8 (2) if some benefits have been paid, not later than
22-9 the second anniversary of the date of the last payment of benefits.
22-10 Art. 27.94. MENTAL AND PHYSICAL EXAMINATIONS. (a) If the
22-11 mental or physical condition of an injured person is material to a
22-12 claim that has been made or may be made for personal compensation
22-13 benefits, the injured person shall submit to reasonable mental or
22-14 physical examinations by a physician or physicians designated by
22-15 the motor vehicle insurer at a reasonably convenient time and
22-16 location, subject to regulations adopted by the commissioner.
22-17 (b) A personal compensation insurance policy may include a
22-18 provision stating the substance of Subsection (a) of this article.
22-19 Art. 27.95. MEDICAL OR REHABILITATION SERVICES. A motor
22-20 vehicle insurer may suspend payment of future benefits to an
22-21 injured person if:
22-22 (1) the insurer has requested that the person submit
22-23 to medical or rehabilitation services; and
22-24 (2) the person unreasonably refuses to submit to the
22-25 services.
23-1 SUBCHAPTER H. FRAUDULENT CLAIMS
23-2 Art. 27.101. FRAUDULENT CLAIMS. A person may not:
23-3 (1) present or cause to be presented, or conspire to
23-4 present or cause to be presented, a statement in connection with a
23-5 claim for a personal compensation benefit that the person knows
23-6 contains false, incomplete, or misleading information concerning a
23-7 matter that is material to the claim; or
23-8 (2) prepare or make a statement that the person
23-9 intends to be presented to another person in connection with a
23-10 claim for a personal compensation benefit that the person knows
23-11 contains false, incomplete, or misleading information concerning a
23-12 matter that is material to the claim.
23-13 Art. 27.102. CRIMINAL OFFENSE. (a) A person commits an
23-14 offense if the person violates Article 27.101 of this code with the
23-15 intent to injure, defraud, or deceive another person.
23-16 (b) An offense under this article is punishable by a fine of
23-17 not more than $10,000.
23-18 Art. 27.103. CIVIL RECOVERY. (a) A person who has been
23-19 injured by a violation of Article 27.101 of this code may bring an
23-20 action to recover damages against the person who committed the
23-21 violation.
23-22 (b) If a person violates Article 27.101 of this code with
23-23 the intent to injure, defraud, or deceive another person, a person
23-24 who has been injured by the violation may recover:
23-25 (1) actual damages;
24-1 (2) a penalty not to exceed twice the amount of actual
24-2 damages; and
24-3 (3) costs and attorney's fees incurred in bringing the
24-4 action.
24-5 SUBCHAPTER I. TORT LIABILITY
24-6 Art. 27.111. TORT ACTION LIMITED. (a) Except as provided
24-7 by this subchapter and Subchapter J of this chapter, a person may
24-8 not recover damages for an accidental injury arising, in whole or
24-9 in part, out of the use of a motor vehicle in this state.
24-10 (b) Except as provided by this subchapter and Subchapter J
24-11 of this chapter, a person involved in a motor vehicle accident in
24-12 this state is subject to the tort and liability limitations of this
24-13 subchapter.
24-14 (c) This subchapter applies only to a claim for damages for
24-15 economic or noneconomic loss resulting from an accidental injury
24-16 caused by the negligent conduct or intentional misconduct of
24-17 another person, including a claim for loss of consortium or
24-18 companionship and any other claim brought by a person other than
24-19 the injured person.
24-20 (d) This subchapter applies to a claim made against a person
24-21 who, in the absence of this subchapter, would be vicariously liable
24-22 for the negligent conduct or intentional misconduct of another
24-23 person.
24-24 Art. 27.112. PERSONS USING UNINSURED MOTOR VEHICLES. (a)
24-25 Except as provided by Subsection (b) of this article, a person who
25-1 is excluded from coverage for personal compensation benefits under
25-2 Article 27.34(a)(4) or (5) of this code may recover damages for
25-3 accidental injury or property damage arising, in whole or in part,
25-4 out of the use of a motor vehicle in this state from any person
25-5 who, in the absence of Article 27.111 of this code, would be liable
25-6 to the person who sustained the injury or damage.
25-7 (b) If any person who is liable for the accidental injury or
25-8 property damage is a personal compensation insured, the person who
25-9 sustained the injury or damage may recover only:
25-10 (1) $20,000 in damages for economic loss sustained by
25-11 the person and resulting from accidental injury, except that if
25-12 there is more than one injured person who may recover damages under
25-13 this article in an accident, the maximum damages payable under this
25-14 subdivision to all of those injured persons is $40,000;
25-15 (2) any damages for economic loss that exceed the
25-16 total of:
25-17 (A) the minimum amount of personal compensation
25-18 benefits that the person who sustained the accidental injury would
25-19 have been entitled to receive had the person been a personal
25-20 compensation insured; and
25-21 (B) any benefits paid as a result of the
25-22 accidental injury paid by persons who are collateral sources for
25-23 the purposes of Article 27.64 of this code; and
25-24 (3) any damages the person may be entitled to recover
25-25 under Article 27.114 or 27.115 of this code.
26-1 (c) The limit on liability imposed by Subsection (b)(1) of
26-2 this article is the total amount recoverable under that subdivision
26-3 from all personal compensation insureds in any one accident.
26-4 Art. 27.113. UNCOMPENSATED ECONOMIC LOSS. (a) A person may
26-5 bring a cause of action to recover damages for uncompensated
26-6 economic loss arising, in whole or in part, out of the use of a
26-7 motor vehicle.
26-8 (b) In this article, "uncompensated economic loss" means the
26-9 portion of economic loss arising out of an accidental injury that
26-10 exceeds the sum of the personal compensation benefits that the
26-11 injured person is entitled to receive and benefits paid by persons
26-12 who are collateral sources for the purposes of Article 27.64 of
26-13 this code. The term does not include the amount of any deductible
26-14 under a personal compensation insurance policy.
26-15 Art. 27.114. MISCONDUCT. (a) A person may bring a cause of
26-16 action to recover damages for accidental injury against a person
26-17 who:
26-18 (1) caused the injury; and
26-19 (2) is convicted, in connection with the accident, of
26-20 a felony or an offense under Chapter 49, Penal Code.
26-21 (b) A person who provides personal compensation benefits or
26-22 provides benefits as a collateral source under Article 27.64 of
26-23 this code is subrogated to the claim of the injured person against
26-24 the convicted person.
26-25 (c) An insurance policy, including a policy that provides
27-1 liability coverage or uninsured motorist insurance, may not provide
27-2 liability coverage for damages recovered under this article.
27-3 Art. 27.115. SERIOUS INJURY. (a) A person may bring a
27-4 cause of action for a serious injury arising, in whole or in part,
27-5 out of the use of a motor vehicle.
27-6 (b) In an action in which the defendant contends that the
27-7 injured person's injury is not a serious injury, either party may
27-8 file a motion seeking summary judgment on that issue. If there is
27-9 not a material issue of fact regarding the nature of the injury or
27-10 its effect on the injured person, the court shall decide whether
27-11 the injury is a serious injury and shall render summary judgment.
27-12 (c) The trial of a case in which a motion is filed under
27-13 Subsection (b) of this article may not begin until the 30th day
27-14 after the date on which the court makes a determination on the
27-15 motion. The court shall order a continuance of the case if
27-16 necessary to comply with this subsection.
27-17 (d) If the court renders summary judgment on a motion filed
27-18 under Subsection (b) of this article and finds that the party
27-19 against whom judgment is rendered did not have a reasonable basis
27-20 for its position, the court shall assess against that party
27-21 reasonable costs and attorney's fees, based on actual time,
27-22 incurred by the prevailing party to obtain the judgment.
27-23 (e) On motion of the defendant in an action tried to a jury
27-24 in which there is a material issue of fact as to whether the
27-25 injured person's injury is a serious injury, that issue shall be
28-1 separately tried and other evidence as to the plaintiff's
28-2 noneconomic loss may not be presented to the jury until that issue
28-3 has been resolved. After resolution of that issue, the amount of
28-4 the injured person's noneconomic loss may be tried before the same
28-5 jury or a different jury, as the court may in its discretion
28-6 decide.
28-7 (f) In this article:
28-8 (1) "Defendant" means a person from whom damages are
28-9 sought for an accidental injury arising, in whole or in part, out
28-10 of the use of a motor vehicle, including a counterdefendant,
28-11 cross-defendant, or third-party defendant.
28-12 (2) "Serious injury" means an accidental injury that
28-13 results in death, dismemberment, a significant and permanent loss
28-14 of an important body function caused by a continuing physical
28-15 injury, or significant and permanent disfigurement that is usually
28-16 visible while the injured person is clothed. The term does not
28-17 include a soft tissue injury.
28-18 Art. 27.116. INSURER'S RIGHT OF SUBROGATION. (a) A motor
28-19 vehicle insurer does not have a right to subrogation for personal
28-20 compensation benefits except as provided by this article and
28-21 Article 27.114 of this code.
28-22 (b) A motor vehicle insurer is subrogated, to the extent of
28-23 its obligation to pay personal compensation benefits, to a personal
28-24 compensation insured's rights under Article 27.114 of this code and
28-25 against a person who is not affected by the limitations on tort
29-1 rights and liabilities under this subchapter.
29-2 Art. 27.117. EFFECT OF CLAIM FOR DAMAGES ON PAYMENT OF
29-3 COMPENSATION BENEFITS. (a) Except as provided by this article, a
29-4 motor vehicle insurer shall pay personal compensation due
29-5 regardless of the value of a claim for damages for the accidental
29-6 injury.
29-7 (b) After recovery under a claim for damages is realized, a
29-8 motor vehicle insurer may subtract the amount of the net recovery
29-9 from the total amount of personal compensation to be paid.
29-10 (c) If payment under the personal compensation insurance
29-11 policy has already been made, the recipient of the payment shall
29-12 repay to the insurer an amount equal to the payment received, not
29-13 to exceed the amount of the net recovery. The insurer has a lien
29-14 on the recovery to the extent of the amount owed to the insurer
29-15 under this subsection.
29-16 (d) If the amount of the recovery exceeds the amount of
29-17 personal compensation benefits paid or owed by the insurer at the
29-18 time of the recovery, but the insurer is obligated to pay personal
29-19 compensation benefits in the future, the remaining amount of the
29-20 net recovery shall be subtracted from the benefits to be paid as
29-21 they become due until the amount of the recovery is exhausted. The
29-22 insurer shall reinstate payment of benefits at the time the amount
29-23 of the recovery is exhausted.
29-24 (e) In this article, "net recovery" means the amount
29-25 recovered under the claim for damages, less reasonable attorney's
30-1 fees and other reasonable expenses incurred in obtaining the
30-2 recovery.
30-3 SUBCHAPTER J. MOTORCYCLES
30-4 Art. 27.131. COVERAGE FOR MOTORCYCLES. (a) Notwithstanding
30-5 any other provision of this chapter, and except as specifically
30-6 provided by this article, a motor vehicle insurer may not issue
30-7 insurance under this chapter that provides benefits for the owner,
30-8 operator, or passenger of a motorcycle for accidental injury
30-9 arising out of the use of a motorcycle.
30-10 (b) A motor vehicle insurance policy must provide personal
30-11 compensation and death benefits under this chapter to an operator
30-12 or passenger of a motorcycle who suffered an accidental injury
30-13 arising out of an accident involving the motorcycle and another
30-14 motor vehicle other than a motorcycle.
30-15 Art. 27.132. LIABILITY OF OWNER OR OPERATOR. (a) Except as
30-16 provided by this article, Subchapter I of this chapter does not
30-17 apply to damages for accidental injury arising, in whole or in
30-18 part, out of the use of a motorcycle in this state.
30-19 (b) Subchapter I applies to accidental injury arising out of
30-20 the use of a motorcycle in this state if the injured person is
30-21 entitled to personal compensation benefits under this chapter.
30-22 SUBCHAPTER K. COLLISION COVERAGE
30-23 Art. 27.141. SCOPE OF SUBCHAPTER. This chapter applies only
30-24 to motor vehicle insurance offered to cover a private passenger
30-25 nonfleet motor vehicle.
31-1 Art. 27.142. COLLISION COVERAGE OFFERED. (a) At the time a
31-2 new applicant for motor vehicle insurance makes an initial written
31-3 application for the insurance, the motor vehicle insurer shall
31-4 offer the limited collision coverage and broad form collision
31-5 coverage described by Articles 27.144 and 27.145 of this code.
31-6 (b) At the time of the initial written application, the
31-7 motor vehicle insurer or an agent of the insurer shall provide the
31-8 applicant with a written explanation of collision coverage options.
31-9 The explanation must be made in easily understandable language.
31-10 The explanation may be in the application form.
31-11 Art. 27.143. NOT COMPREHENSIVE COVERAGE. The collision
31-12 coverage required by this subchapter does not include coverage for
31-13 losses customarily insured under comprehensive motor vehicle
31-14 insurance coverages.
31-15 Art. 27.144. LIMITED COLLISION COVERAGE. (a) Limited
31-16 collision coverage must pay for collision damage to the insured
31-17 vehicle if the operator of the vehicle is not substantially at
31-18 fault in the accident from which the damage arose.
31-19 (b) Except as provided by Article 27.147 of this code,
31-20 limited collision coverage is not subject to a deductible.
31-21 Art. 27.145. BROAD FORM COLLISION COVERAGE. (a) Broad form
31-22 collision coverage must pay for collision damage to the insured
31-23 vehicle without regard to fault.
31-24 (b) Except as provided by Subsection (c) of this article,
31-25 broad form collision coverage is subject to deductibles in amounts
32-1 approved by the commissioner.
32-2 (c) Except as provided by Article 27.147 of this code, the
32-3 motor vehicle insurer shall waive the deductible applicable to
32-4 broad form collision coverage if the operator of the vehicle is not
32-5 substantially at fault in the accident from which the damage arose.
32-6 Art. 27.146. SUBSTANTIALLY AT FAULT. A person is
32-7 substantially at fault for purposes of Article 27.144 or 27.145 of
32-8 this code if the person's action or inaction was more than 50
32-9 percent of the cause of the accident.
32-10 Art. 27.147. OPTIONAL DEDUCTIBLES. In addition to the
32-11 coverages offered under Articles 27.144 and 27.145 of this code,
32-12 limited collision coverage and broad form collision coverage may be
32-13 offered with deductibles approved by the commissioner.
32-14 Art. 27.148. REJECTION OF COLLISION COVERAGE. (a) An
32-15 applicant for motor vehicle insurance may reject the collision
32-16 coverages described by this subchapter.
32-17 (b) The rejection must be made in writing in a form approved
32-18 by the commissioner. The rejection statement shall inform the
32-19 applicant of the applicant's rights if damage occurs to the insured
32-20 vehicle under the alternative coverage option selected. The
32-21 rejection may be included in the application.
32-22 Art. 27.149. RENEWAL. (a) At least annually in conjunction
32-23 with the renewal of a motor vehicle insurance policy, and at the
32-24 time of an addition, deletion, or substitution of a vehicle under a
32-25 motor vehicle insurance policy, other than a group policy, the
33-1 motor vehicle insurer may notify the policyholder of:
33-2 (1) the status of the collision coverage applicable to
33-3 the vehicle or vehicles affected by the renewal or change and the
33-4 rights of the insured if damage occurs to an insured vehicle under
33-5 that coverage;
33-6 (2) the collision coverages available under the policy
33-7 and the rights of the insured if damage occurs to an insured
33-8 vehicle under each collision option; and
33-9 (3) the procedures the policyholder must follow if the
33-10 policyholder wishes to change the collision coverage.
33-11 (b) The notice required by this article must be made on a
33-12 form approved by the commissioner.
33-13 Art. 27.150. PAYMENT OF CLAIM. A motor vehicle insurer
33-14 shall pay a claim under the collision coverages described by this
33-15 subchapter jointly to the policyholder and to a motor vehicle
33-16 repair facility.
33-17 Art. 27.151. ESTIMATE AND SERVICES. Except as provided by
33-18 Article 27.152 of this code, an insured may use any motor vehicle
33-19 repair facility to provide:
33-20 (1) an estimate for repair services covered by the
33-21 motor vehicle insurance policy; or
33-22 (2) the repair services.
33-23 Art. 27.152. DIRECT REPAIR PROGRAM. (a) A motor vehicle
33-24 insurer may establish a direct repair program and may require an
33-25 insured to use a repair facility that participates in the program.
34-1 (b) A motor vehicle insurer that establishes a direct repair
34-2 program shall make available to all motor vehicle repair facilities
34-3 the criteria necessary to participate in the direct repair program.
34-4 (c) A motor vehicle repair facility that meets the criteria
34-5 is eligible to participate in the direct repair program.
34-6 (d) A motor vehicle insurer may not:
34-7 (1) prohibit a motor vehicle repair facility from
34-8 participation in a direct repair program; or
34-9 (2) limit the number of repair facilities that
34-10 participate in a direct repair program.
34-11 SUBCHAPTER L. RESIDUAL LIABILITY COVERAGE
34-12 Art. 27.161. RESIDUAL LIABILITY INSURANCE COVERAGE REQUIRED.
34-13 A motor vehicle insurance policy issued under this chapter must
34-14 provide residual liability coverage as provided by this subchapter.
34-15 Art. 27.162. COVERAGE. Except as provided by Article
34-16 27.114(c) of this code, residual liability insurance coverage must
34-17 provide liability coverage for motor vehicle accidents in this
34-18 state to the extent that the liability is retained by the insured
34-19 under Subchapters I and J of this chapter.
34-20 SECTION 2. Articles 5.01(b) and (e), Insurance Code, are
34-21 amended to read as follows:
34-22 (b) The Board shall have the sole and exclusive power and
34-23 authority, and it shall be its duty to determine, fix, prescribe,
34-24 and promulgate just, reasonable and adequate rates of premiums to
34-25 be charged and collected by all insurers writing any form of
35-1 insurance on motor vehicles in this State, including insurance
35-2 providing personal compensation coverage under Chapter 27 of this
35-3 code, fleet or other rating plans designed to discourage losses
35-4 from fire and theft and similar hazards, and any rating plans
35-5 designed to encourage the prevention of accidents. In promulgating
35-6 any such rating plans the Board shall give due consideration to the
35-7 peculiar hazards and experience of individual risks, past and
35-8 prospective, within and outside the State and to all other relevant
35-9 factors, within and outside the State. The Board shall have the
35-10 authority also to alter or amend any and all of such rates of
35-11 premiums so fixed and determined and adopted by it, and to raise or
35-12 lower the same or any part thereof.
35-13 (e) Motor vehicle or automobile insurance as referred to in
35-14 this subchapter shall be taken and construed to mean insurance
35-15 providing personal compensation coverage under Chapter 27 of this
35-16 code and every form of insurance on any automobile or other vehicle
35-17 hereinafter enumerated and its operating equipment or necessitated
35-18 by reason of the liability imposed by law for damages arising out
35-19 of the ownership, operation, maintenance, or use in this State of
35-20 any automobile, motorcycle, motorbicycle, truck, truck-tractor,
35-21 tractor, traction engine, or any other self-propelled vehicle, and
35-22 including also every vehicle, trailer or semi-trailer pulled or
35-23 towed by a motor vehicle, but excluding every motor vehicle running
35-24 only upon fixed rails or tracks. Workers' Compensation Insurance
35-25 is excluded from the foregoing definition.
36-1 SECTION 3. Article 5.01-1, Insurance Code, is amended to
36-2 read as follows:
36-3 Art. 5.01-1. PREMIUM RATING PLANS. A rating plan respecting
36-4 the writing of motor vehicle insurance, other than insurance
36-5 written under Section 21.81 of this code <pursuant to Section 35 of
36-6 the Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
36-7 Vernon's Texas Civil Statutes)>, may not assign any rate
36-8 consequence to a charge or conviction, or otherwise cause premiums
36-9 for motor vehicle insurance to be increased because of a charge or
36-10 conviction for a violation of the Uniform Act Regulating Traffic on
36-11 Highways, as amended (Article 6701d, Vernon's Texas Civil
36-12 Statutes).
36-13 SECTION 4. Article 5.06(1), Insurance Code, is amended to
36-14 read as follows:
36-15 (1) The Board shall adopt a policy form and endorsements for
36-16 each type of motor vehicle insurance subject to this subchapter.
36-17 The coverage provided by a policy form adopted under this
36-18 subsection is the minimum coverage that may be provided under an
36-19 insurance policy for that type of insurance in this State. <Each
36-20 policy form must provide the coverages mandated under Articles
36-21 5.06-1 and 5.06-3 of this code, except that the coverages may be
36-22 rejected by the named insured as provided by those articles.>
36-23 SECTION 5. Article 5.06-6, Insurance Code, is amended to
36-24 read as follows:
36-25 Art. 5.06-6. COVERAGES FOR SPOUSES AND FORMER SPOUSES. A
37-1 personal automobile policy or any similar policy form adopted or
37-2 approved by the State Board of Insurance under Article 5.06 of this
37-3 code that provides coverage for an injury <covers liability>
37-4 arising out of ownership, maintenance, or use of a motor vehicle of
37-5 a spouse, who is otherwise insured by the policy, shall contain a
37-6 provision to continue coverage for the spouse during a period of
37-7 separation in contemplation of divorce.
37-8 SECTION 6. Section 1(a), Article 5.101, Insurance Code, is
37-9 amended to read as follows:
37-10 (a) The pilot program on flexible rating is created to help
37-11 stabilize the rates charged for insurance in all lines of <property
37-12 and casualty> insurance covered by Subchapters A through L of this
37-13 chapter, except ocean marine insurance, inland marine insurance,
37-14 fidelity, surety and guaranty bond insurance, errors and omissions
37-15 insurance, directors' and officers' liability insurance, general
37-16 liability insurance, commercial property insurance, workers'
37-17 compensation insurance, professional liability insurance for
37-18 physicians and health care providers as defined in Article 5.15-1
37-19 of this code, and attorney's professional liability insurance.
37-20 SECTION 7. Sections 1(2), (3), and (4), Article 21.81,
37-21 Insurance Code, are amended to read as follows:
37-22 (2) "Authorized insurer" means any insurer authorized
37-23 by the Texas Department of Insurance to write motor vehicle
37-24 insurance <liability> coverage under the provisions of Chapter 5 of
37-25 this code. The term does not include an insurer organized under
38-1 Chapter 17 of this code.
38-2 (3) "Insurance" means a motor vehicle <an> insurance
38-3 policy that meets the requirements of Chapter 27 of this code <the
38-4 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
38-5 Vernon's Texas Civil Statutes)>.
38-6 (4) "Plan of operation" means the plan for operating
38-7 the association to provide a means by which insurance may be
38-8 assigned to an eligible person who is unable to purchase insurance
38-9 directly from an authorized insurer <required by law to show proof
38-10 of financial responsibility for the future>.
38-11 SECTION 8. Section 2(a), Article 21.81, Insurance Code, is
38-12 amended to read as follows:
38-13 (a) The Texas Automobile Insurance Plan Association is
38-14 established. The association is a nonprofit corporate body
38-15 composed of all authorized insurers. Each authorized insurer shall
38-16 be a member of the association and shall remain a member of the
38-17 association so long as the association is in existence as a
38-18 condition of its authority to write motor vehicle <liability>
38-19 insurance in this state.
38-20 SECTION 9. Sections 3(a), (d), and (f), Article 21.81,
38-21 Insurance Code, are amended to read as follows:
38-22 (a) The governing committee has the responsibility for the
38-23 administration of the association through the plan of operation.
38-24 The association may collect funds from the member companies to
38-25 provide for the operation of the association. Assessments must be
39-1 made upon member companies in proportion to their writings of motor
39-2 vehicle <liability> insurance in this state. If an assessment made
39-3 upon a member insurer is not paid within a reasonable time, the
39-4 association may bring an action to collect the assessment. In
39-5 addition, the association may report the failure to pay to the
39-6 commissioner, who may institute a disciplinary action under Article
39-7 1.10 of this code. The association has the powers granted to
39-8 nonprofit corporations under the Texas Non-Profit Corporation Act
39-9 (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes).
39-10 (d) If the commissioner at any time believes that any part
39-11 of the plan of operation is not in keeping with the purposes of
39-12 Chapter 27 of this code <the Texas Motor Vehicle
39-13 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
39-14 Statutes)>, the commissioner shall notify the governing committee
39-15 in writing so that the governing committee may take corrective
39-16 action.
39-17 (f) The plan of operation must include a voluntary,
39-18 competitive limited assignment distribution plan that allows
39-19 members to contract directly with a servicing carrier to accept
39-20 assignments to that carrier by the association. A servicing
39-21 carrier must be an insurance company licensed to write automobile
39-22 insurance in this state and is qualified if it has written
39-23 automobile <liability> insurance in Texas for at least five years
39-24 or is currently engaged as a servicing carrier for assigned risk
39-25 automobile business in at least one other state. After notice and
40-1 hearing, the commissioner may prohibit an insurer from acting as a
40-2 servicing carrier. The terms of the contract between the servicing
40-3 carrier and the insurer, including the buy-out fee, shall be
40-4 determined by negotiation between the parties. The governing
40-5 committee may adopt reasonable rules for the conduct of business
40-6 under the contract and may establish reasonable standards of
40-7 eligibility for servicing carriers.
40-8 SECTION 10. Sections 4(a) and (c), Article 21.81, Insurance
40-9 Code, are amended to read as follows:
40-10 (a) The association shall provide a means by which insurance
40-11 may be assigned to an authorized insurance company for a person who
40-12 cannot otherwise obtain insurance from an authorized insurer
40-13 <required by the Texas Motor Vehicle Safety-Responsibility Act
40-14 (Article 6701h, Vernon's Texas Civil Statutes) to show proof of
40-15 financial responsibility for the future>.
40-16 (c) A person who obtains, from any source, excess private
40-17 passenger automobile <auto liability> insurance coverage over the
40-18 minimum automobile <auto liability> coverage required by law shall
40-19 be ineligible for insurance through the association. The coverage
40-20 for the excess and basic limits policies is not affected by a
40-21 violation of this section unless the insurer shows that the insured
40-22 had actual knowledge that they were ineligible for coverage through
40-23 the association. An agent may not knowingly write excess private
40-24 passenger automobile <auto liability> insurance coverage if the
40-25 minimum automobile <auto liability> coverage required by law is
41-1 provided through the association. If an agent violates this
41-2 section, the agent, after notice and hearing, is subject to the
41-3 penalties provided by Section 7, Article 1.10, of this code.
41-4 SECTION 11. Section 84.004(c), Civil Practice and Remedies
41-5 Code, is amended to read as follows:
41-6 (c) A volunteer of a charitable organization is liable to a
41-7 person for death, damage, or injury to the person or his property
41-8 proximately caused by any act or omission arising from the
41-9 operation or use of any motor-driven equipment, including an
41-10 airplane<, to the extent insurance coverage is required by Section
41-11 1A, Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
41-12 Vernon's Texas Civil Statutes), and> to the extent of any existing
41-13 insurance coverage applicable to the act or omission. In the case
41-14 of motor-driven equipment that is a motor vehicle, as that term is
41-15 defined by Article 27.01, Insurance Code, the volunteer is liable
41-16 only to the extent provided by Chapter 27, Insurance Code.
41-17 SECTION 12. Section 612.001, Government Code, is amended to
41-18 read as follows:
41-19 Sec. 612.001. Motor Vehicle <Liability> Insurance for Peace
41-20 Officers and Fire Fighters. (a) The state shall provide motor
41-21 vehicle insurance for <insuring> each peace officer and fire
41-22 fighter with respect to <in its employ against liability to third
41-23 persons arising out of> the operation, maintenance, or use of a
41-24 motor vehicle owned or leased by the state.
41-25 (b) The <liability> coverage provided under this section
42-1 must satisfy the requirements of Chapter 27, Insurance Code <be in
42-2 amounts not less than those required by the Texas Motor Vehicle
42-3 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
42-4 Statutes) to provide proof of financial responsibility>.
42-5 (c) The state may elect to be self-insured or to reimburse
42-6 the actual cost of an extended automobile <liability> insurance
42-7 endorsement obtained by a peace officer or fire fighter on an
42-8 individually owned motor vehicle <automobile liability> insurance
42-9 policy. The extended endorsement must:
42-10 (1) be in the amount required by Subsection (b); and
42-11 (2) extend the coverage to include the operation and
42-12 use of vehicles by a peace officer or fire fighter in the scope of
42-13 the officer's or fire fighter's employment.
42-14 (d) If the reimbursement method is used, the state may
42-15 require a peace officer or fire fighter who operates and uses a
42-16 motor vehicle to present proof that an extended coverage
42-17 endorsement has been purchased and is in effect for the period of
42-18 reimbursement.
42-19 (e) In this section, "motor vehicle" means any motor vehicle
42-20 for which motor vehicle automobile insurance may be written under
42-21 Subchapter A, Chapter 5, Insurance Code.
42-22 SECTION 13. (a) Section 2001.221, Government Code, is
42-23 amended to conform to Section 14, Chapter 886, Acts of the 73rd
42-24 Legislature, Regular Session, 1993, and amended to read as follows:
42-25 Sec. 2001.221. Driver's Licenses. This chapter does not
43-1 apply to a suspension, revocation, cancellation, denial, or
43-2 disqualification of a driver's license or commercial driver's
43-3 license as authorized by:
43-4 (1) Article IV, Chapter 173, Acts of the 47th
43-5 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
43-6 Civil Statutes);
43-7 (2) the Texas Commercial Driver's License Act (Article
43-8 6687b-2, Revised Statutes); or
43-9 (3) <the Texas Motor Vehicle Safety-Responsibility Act
43-10 (Article 6701h, Vernon's Texas Civil Statutes);>
43-11 <(4) Chapter 434, Acts of the 61st Legislature,
43-12 Regular Session, 1969 (Article 6701l-5, Vernon's Texas Civil
43-13 Statutes); or>
43-14 <(5)> Section 13, Article 42.12, Code of Criminal
43-15 Procedure.
43-16 (b) Section 14, Chapter 886, Acts of the 73rd Legislature,
43-17 Regular Session, 1993, is repealed.
43-18 SECTION 14. Section 2002.023, Government Code, is amended to
43-19 read as follows:
43-20 Sec. 2002.023. Exceptions. This subchapter does not apply
43-21 to:
43-22 (1) a suspension, revocation, cancellation, denial, or
43-23 disqualification of a driver's license or commercial driver's
43-24 license as authorized by:
43-25 (A) Article IV, Chapter 173, Acts of the 47th
44-1 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
44-2 Civil Statutes);
44-3 (B) the Texas Commercial Driver's License Act
44-4 (Article 6687b-2, Revised Statutes);
44-5 (C) <the Texas Motor Vehicle
44-6 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
44-7 Statutes);>
44-8 <(D)> Chapter 434, Acts of the 61st Legislature,
44-9 Regular Session, 1969 (Article 6701l-5, Vernon's Texas Civil
44-10 Statutes); or
44-11 (D) <(E)> Section 13, Article 42.12, Code of
44-12 Criminal Procedure;
44-13 (2) matters related solely to the internal personnel
44-14 rules and practices of a state agency; or
44-15 (3) the Texas Employment Commission, other than to
44-16 matters of unemployment insurance maintained by the commission.
44-17 SECTION 15. Section 142.006, Local Government Code, is
44-18 amended to read as follows:
44-19 Sec. 142.006. Motor Vehicle <Liability> Insurance for Peace
44-20 Officers and Fire Fighters. (a) This section does not apply to a
44-21 municipality covered by Section 142.007.
44-22 (b) A municipality shall provide motor vehicle insurance for
44-23 <insuring> each peace officer and fire fighter in its employ with
44-24 respect to <against liability to third persons arising out of> the
44-25 operation, maintenance, or use of a motor vehicle owned or leased
45-1 by the municipality.
45-2 (c) The <liability> coverage provided under this section
45-3 must be in amounts not less than those required by Chapter 27,
45-4 Insurance Code <the Texas Motor Vehicle Safety-Responsibility Act
45-5 (Article 6701h, Vernon's Texas Civil Statutes) to provide proof of
45-6 financial responsibility>.
45-7 (d) The municipality may elect to be self-insured or to
45-8 reimburse the actual cost of extended automobile <liability>
45-9 insurance endorsements obtained by a peace officer and fire fighter
45-10 on an individually owned automobile <liability> insurance policy.
45-11 The extended endorsements must:
45-12 (1) be in the amount required by Subsection (c); and
45-13 (2) extend the coverage to include the operation and
45-14 use of vehicles by a peace officer or fire fighter in the scope of
45-15 the officer's or fire fighter's employment.
45-16 (e) If the reimbursement method is used, the municipality
45-17 may require that a peace officer or fire fighter who operates and
45-18 uses a motor vehicle present proof that an extended coverage
45-19 endorsement has been purchased and is in effect for the period of
45-20 reimbursement.
45-21 (f) In this section, "motor vehicle" means any motor vehicle
45-22 for which motor vehicle automobile insurance may be written under
45-23 Subchapter A, Chapter 5, Insurance Code.
45-24 SECTION 16. Section 157.042, Local Government Code, is
45-25 amended to read as follows:
46-1 Sec. 157.042. Motor Vehicle <Automobile Liability> Insurance
46-2 for Peace Officers in Counties of More Than 1.4 Million. (a) A
46-3 county with a population of more than 1.4 million shall insure its
46-4 sheriff, constables, and full-time deputies of those officers with
46-5 respect to <against liability to third persons arising from> the
46-6 operation or maintenance of county-owned or county-leased motor
46-7 vehicles.
46-8 (b) A county may satisfy the requirement of Subsection (a)
46-9 by requiring that the person to be covered purchase an extended
46-10 coverage endorsement to an individually owned <liability> insurance
46-11 policy and by reimbursing the person for its cost. The extended
46-12 coverage endorsement must be in an amount equal to or greater than
46-13 that required by Subsection (d) and must extend coverage to include
46-14 the operation of county vehicles in the scope of the person's
46-15 employment. The county may require a person insured in this manner
46-16 to provide proof of coverage.
46-17 (c) A county may elect to comply with the requirements of
46-18 this section by self-insuring <in accordance with Section 34, Texas
46-19 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
46-20 Texas Civil Statutes)>.
46-21 (d) Coverage <Liability coverage> required under this
46-22 section must be in amounts equal to or greater than the amounts
46-23 required by Chapter 27, Insurance Code <the Texas Motor Vehicle
46-24 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
46-25 Statutes)>.
47-1 (e) In this section, "motor vehicle" means a vehicle for
47-2 which motor vehicle insurance is written under Subchapter A,
47-3 Chapter 5, Insurance Code.
47-4 SECTION 17. Section 113.097(d), Natural Resources Code, is
47-5 amended to read as follows:
47-6 (d) Each category "C," "E," "H," or "J" licensee must carry
47-7 <motor vehicle> bodily injury and property damage liability
47-8 coverage on each motor vehicle, including trailers and
47-9 semitrailers, used to transport LP-gas. The commission shall
47-10 establish by rule a reasonable amount of coverage to be maintained,
47-11 except that coverage shall not be less than the amounts required as
47-12 proof of financial responsibility under the Texas Motor Vehicle
47-13 Safety-Responsibility Act<, as amended> (Article 6701h, Vernon's
47-14 Texas Civil Statutes), as that law existed on August 31, 1995.
47-15 SECTION 18. Section 2(a), Chapter 88, General Laws, Acts of
47-16 the 41st Legislature, 2nd Called Session, 1929 (Article 6675a-2,
47-17 Vernon's Texas Civil Statutes), is amended to read as follows:
47-18 (a) Except as provided by this subsection, every owner of a
47-19 motor vehicle, trailer or semitrailer used or to be used upon the
47-20 public highways of this State shall apply each year to the Texas
47-21 Department of Transportation through the County Tax Collector of
47-22 the county in which he resides for the registration of each such
47-23 vehicle owned or controlled by him for the ensuing or current
47-24 calendar year or unexpired portion thereof; provided, that where a
47-25 public highway separates lands under the dominion or control of the
48-1 owner, the operation of such a motor vehicle by such owner, his
48-2 agent or employee, across such highway shall not constitute a use
48-3 of such motor vehicle upon a public highway of this State. An
48-4 all-terrain vehicle, with or without design alterations, may not be
48-5 registered for operation on public highways, except that the State,
48-6 a county, or a municipality may register an all-terrain vehicle for
48-7 operation on public beaches and highways to maintain public safety
48-8 and welfare. In lieu of highway motor vehicle registration, the
48-9 owner of an all-terrain vehicle that is not authorized to operate
48-10 on public beaches or highways and that is used or to be used on
48-11 public property in this State shall apply each year to the Texas
48-12 Department of Transportation through the County Tax Collector of
48-13 the county in which he resides for off-highway registration of each
48-14 vehicle owned or controlled by him for the ensuing or current
48-15 calendar year or unexpired portion of the calendar year. The Texas
48-16 Department of Transportation through the County Tax Collector shall
48-17 require an applicant for registration of a vehicle in a county that
48-18 is not covered by a vehicle emissions inspection program to provide
48-19 evidence that the applicant is a resident of that county. The
48-20 Department by rule shall prescribe acceptable forms and types of
48-21 evidence. Acceptable forms and types of evidence may include voter
48-22 registration information, driver's license information, utility
48-23 billing information, property tax payment information, or a school
48-24 tuition receipt<, or evidence of compliance with the Texas Motor
48-25 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
49-1 Civil Statutes)>. The County Tax Collector, a deputy County Tax
49-2 Collector, or a person acting on behalf of the County Tax Collector
49-3 is not liable to any person for refusing to register a motor
49-4 vehicle because of the person's failure to submit evidence of
49-5 residency that complies with rules of the Department or for
49-6 registering a motor vehicle under this section.
49-7 SECTION 19. Section 2A, Chapter 18, General Laws, Acts of
49-8 the 41st Legislature, 5th Called Session, 1930 (Article 6675a-6e,
49-9 Vernon's Texas Civil Statutes), is amended to read as follows:
49-10 Sec. 2A. To expedite and facilitate, during the harvesting
49-11 season, the harvesting and marketing of farm products produced in
49-12 this State, the Department is authorized to issue to a nonresident
49-13 owner a 30-day temporary registration permit for any truck, truck
49-14 tractor, trailer or semitrailer to be used in the movement of such
49-15 farm commodities from the place of production to market, storage or
49-16 railhead, not more than seventy-five (75) miles distant from such
49-17 place of production, or to be used in the movement of machinery
49-18 used to harvest any of the commodities named in this section.
49-19 To expedite and facilitate, during the harvesting season, the
49-20 harvesting and movement of farm products produced outside of Texas
49-21 but marketed or processed in Texas or moved to points in Texas for
49-22 shipment, the Department is authorized to issue to a nonresident
49-23 owner a 30-day temporary registration permit for any truck, truck
49-24 tractor, trailer or semitrailer to be used in the movement of such
49-25 farm commodities from the point of entry into Texas to market,
50-1 storage, processing plant, railhead or seaport not more than eighty
50-2 (80) miles distant from such point of entry into Texas. All
50-3 mileages and distances referred to herein are State Highway
50-4 mileages. Before such temporary registration provided for in this
50-5 paragraph may be issued, the applicant must present satisfactory
50-6 evidence that such motor vehicle <is protected by such insurance
50-7 and in such amounts as may be described in Section 5 of the Texas
50-8 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
50-9 Texas Civil Statutes) as it is now written or as it may hereafter
50-10 be amended, and such policies must be issued by an insurance
50-11 company or surety company authorized to write Motor Vehicle
50-12 Liability Insurance in this State unless the applicant is unable to
50-13 obtain the insurance coverage from an insurance company authorized
50-14 to write the coverage in this State, in which case, the applicant,
50-15 with the Department's approval, may obtain the coverage from a
50-16 surplus lines insurer that meets the requirements of Article
50-17 1.14-2, Insurance Code, and rules adopted by the State Board of
50-18 Insurance under that article; and that such vehicle> has been
50-19 inspected as required under the Uniform Act Regulating Traffic on
50-20 Highways in Texas (Article XV of Article 6701d, Vernon's Texas
50-21 Civil Statutes) as it is now written or as it may hereafter be
50-22 amended.
50-23 The Department is authorized to prescribe the form of the
50-24 application and the information to be furnished therein for such
50-25 temporary registration permits. If the application is granted, the
51-1 Department shall issue a special distinguishing insignia which must
51-2 be attached to such vehicle in lieu of the regular Texas Highway
51-3 registration plates. Such special insignia shall show its
51-4 expiration date. The temporary registration permit fee shall be
51-5 one-twelfth (1/12) of the annual Texas registration fee for the
51-6 vehicle for which the special permit is secured.
51-7 The temporary permits herein authorized shall be issued only
51-8 when the vehicle for which said permit is issued is legally
51-9 registered in the nonresident owner's home state or country for the
51-10 current registration year; and said permit will remain valid only
51-11 so long as the home state or country registration is valid; but in
51-12 any event the Texas temporary registration permit will expire 30
51-13 days from the date of issuance. Not more than three (3) such
51-14 temporary registration permits may be issued to a nonresident owner
51-15 during any one (1) vehicle registration year in the State of Texas.
51-16 A vehicle registered under the terms of this Act may not be
51-17 operated in Texas after the expiration of the temporary permit
51-18 unless the nonresident owner secures a second temporary permit as
51-19 provided above, or unless the nonresident owner registers the
51-20 vehicle under the appropriate Texas vehicular registration
51-21 statutes, applicable to residents, for the remainder of the
51-22 registration year. No such vehicle may be registered with a Texas
51-23 farm truck license.
51-24 Any person who shall transport any of the commodities
51-25 described in this Act, under a temporary permit provided for
52-1 herein, to a market, place of storage, processing plant, railhead
52-2 or seaport, which is a greater distance from the place of
52-3 production of such commodity in this State, or the point of entry
52-4 into the State of Texas than is provided for in said temporary
52-5 permit, or shall follow a route other than that prescribed by the
52-6 Highway Commission, shall be punished by a fine of not less than
52-7 Twenty-five Dollars ($25), nor more than Two Hundred Dollars
52-8 ($200).
52-9 Nothing in this Act shall be construed to authorize such
52-10 nonresident owner or operator to operate or cause to be operated
52-11 any of such vehicles in this State in violation of Chapter 314,
52-12 Acts of the 41st Legislature, Regular Session, 1929, as amended
52-13 (Article 911b, Vernon's Texas Civil Statutes) or any of the other
52-14 laws of this State.
52-15 SECTION 20. Section 21(k), Chapter 173, Acts of the 47th
52-16 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
52-17 Civil Statutes), is amended to read as follows:
52-18 (k) The Department may provide to any person the records
52-19 specified in Subsections (d), (e), and (f) of this section<, and in
52-20 Section 3, Texas Motor Vehicle Safety-Responsibility Act (Article
52-21 6701h, Vernon's Texas Civil Statutes)>, for the fee required by
52-22 those sections, pertaining to the holder of or applicant for a
52-23 commercial driver's license, as defined in the Texas Commercial
52-24 Driver's License Act (Article 6687b-2, Revised Statutes). If the
52-25 information is provided through the Commercial Driver License
53-1 Information System, the fee for this service is the fee specified
53-2 in this subsection, plus an additional fee of two dollars ($2.00).
53-3 SECTION 21. Section 23A(f), Chapter 173, Acts of the 47th
53-4 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
53-5 Civil Statutes), is amended to read as follows:
53-6 (f) The judge hearing the petition shall enter an order
53-7 either finding that no essential need exists for the operation of a
53-8 motor vehicle or enter an order finding an essential need for
53-9 operating a motor vehicle. In the event the judge enters the order
53-10 finding an essential need, he shall also, as part of the order,
53-11 determine the actual need of the petitioner in operating a motor
53-12 vehicle. <The order shall require the petitioner to give proof of
53-13 a valid policy of automobile liability insurance in accordance with
53-14 the Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
53-15 Vernon's Texas Civil Statutes).> If the person's license has been
53-16 suspended following a conviction under Section 19.05(a)(2), Penal
53-17 Code, but only on conviction of a second or subsequent offense
53-18 under that section, the order shall restrict the person to the
53-19 operation of a motor vehicle equipped with a device that uses a
53-20 deep-lung breath analysis mechanism to make impractical the
53-21 operation of the motor vehicle if ethyl alcohol is detected in the
53-22 breath of the restricted operator. If the person's license has
53-23 been suspended following a conviction of an offense under Article
53-24 6701l-1, Revised Statutes, for which the person has been punished
53-25 under Subsection (e) of that article, the order shall restrict the
54-1 person to the operation of a motor vehicle equipped with that
54-2 device. If the person's license has been suspended following a
54-3 conviction of an offense under Article 6701l-1, Revised Statutes,
54-4 or Section 19.05(a)(2), Penal Code, before entering the order, the
54-5 judge shall determine from criminal history record information
54-6 maintained by the Department of Public Safety whether the person
54-7 has two or more previous convictions under that article or that
54-8 section or has one previous conviction under that article and one
54-9 previous conviction under that section. If the judge determines
54-10 that the person has two or more such previous convictions, as part
54-11 of the order the judge shall require that the petitioner not
54-12 operate a motor vehicle unless the vehicle is equipped with the
54-13 device described in this subsection. The defendant shall obtain
54-14 the device at his own cost unless the court finds that to do so
54-15 would not be in the best interest of justice and enters its
54-16 findings on record. The court shall order the device to remain
54-17 installed on that vehicle for a period not less than 50 percent of
54-18 the supervision period. If the court determines the offender is
54-19 unable to pay for the device, the court may impose a reasonable
54-20 payment schedule not to exceed twice the period of the court's
54-21 order. Notwithstanding the provisions of this section, if a person
54-22 is required to operate a motor vehicle in the course and scope of
54-23 the person's employment and if the vehicle is owned by the
54-24 employer, the person may operate that vehicle without installation
54-25 of an approved ignition interlock device if the employer has been
55-1 notified of such driving privilege restriction and if proof of that
55-2 notification is with the vehicle. This employment exemption does
55-3 not apply, however, if the business entity that owns the vehicle is
55-4 owned or controlled by the person whose driving privilege has been
55-5 restricted. The order shall be definite as to hours of the day,
55-6 days of the week, specific reasons for travel, and areas or routes
55-7 of travel to be permitted, except that the petitioner shall not be
55-8 allowed to operate a motor vehicle more than four (4) hours in any
55-9 twenty-four (24) consecutive hours. On a proper showing of
55-10 necessity, however, the court may waive the four-hour restriction
55-11 and allow the petitioner to operate a motor vehicle for any period
55-12 determined by the court that does not exceed twelve (12) hours in
55-13 any twenty-four (24) consecutive hours. When a person's license is
55-14 suspended under Article 6687b-1, Revised Statutes, or Chapter 434,
55-15 Acts of the 61st Legislature, Regular Session, 1969 (Article
55-16 6701l-5, Vernon's Texas Civil Statutes), and the person has not had
55-17 a prior suspension arising from an alcohol-related or drug-related
55-18 enforcement contact, as defined in Article 6687b-1, Revised
55-19 Statutes, in the five years immediately preceding the date of the
55-20 person's arrest, an order under this section granting the person an
55-21 occupational license to meet an essential need shall be immediately
55-22 effective. Provided, that the court shall order the petitioner to
55-23 comply with the alcohol counselling and rehabilitation program
55-24 requirements contained in Subsection (g) of this section. If the
55-25 person's driver's license has been suspended as a result of an
56-1 alcohol-related or drug-related enforcement contact, as defined in
56-2 Section 1(2)(B) or (C), Article 6687b-1, Revised Statutes, in the
56-3 five years immediately preceding the date of the person's arrest,
56-4 the order may not be effective before 90 days after the effective
56-5 date of the suspension. If the person's driver's license has been
56-6 suspended as a result of a conviction under Article 6701l-1,
56-7 Revised Statutes, or under Section 19.05(a)(2), Penal Code, in the
56-8 five years immediately preceding the date of the person's arrest,
56-9 the order may not be effective before 180 days after the effective
56-10 date of the suspension. An order entered by the court shall extend
56-11 until the end of the period of the suspension. A certified copy of
56-12 the petition and the court order setting out the judge's finding
56-13 and the restrictions shall be forwarded to the Department. The
56-14 petitioner may use a copy of the court order as a restricted
56-15 license for thirty (30) days after the date the order is effective.
56-16 The Department of Public Safety shall promulgate rules and
56-17 regulations for the approval of models and classes of devices used
56-18 under this subsection and Section 25(a) of this Act. The
56-19 Department by rule shall establish standards for the calibration
56-20 and maintenance of devices, but the calibration and maintenance of
56-21 each individual device is the responsibility of the manufacturer of
56-22 that device. If the Department approves a device, the Department
56-23 shall notify the manufacturer in writing of that fact. Written
56-24 notice from the Department to a manufacturer approving a device is
56-25 admissible in any civil or criminal proceeding in this state. The
57-1 manufacturer shall reimburse the Department for any cost incurred
57-2 by the Department in approving a device under this subsection. The
57-3 Department may not be held liable in a civil or criminal proceeding
57-4 arising out of the use of a device approved under this subsection.
57-5 SECTION 22. Section 34(f), Chapter 173, Acts of the 47th
57-6 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
57-7 Civil Statutes), is amended to read as follows:
57-8 (f) If it is shown on the trial of an offense under this
57-9 section that the person has previously been convicted of an offense
57-10 under this section or former Section 32(c)(1), Texas Motor Vehicle
57-11 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
57-12 Statutes), the offense is punishable as a Class A misdemeanor.
57-13 SECTION 23. Section 25(l), Texas Commercial Driver's License
57-14 Act (Article 6687b-2, Revised Statutes), is amended to read as
57-15 follows:
57-16 (l) A person who is subject to disqualification under this
57-17 article may also have the person's driver's license suspended,
57-18 revoked, canceled, or denied under Chapter 173, Acts of the 47th
57-19 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
57-20 Civil Statutes); Article 6687b-1, Revised Statutes; or Chapter 434,
57-21 Acts of the 61st Legislature, Regular Session, 1969 (Article
57-22 6701l-5, Vernon's Texas Civil Statutes)<; or the Texas Motor
57-23 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
57-24 Civil Statutes)>, if the conduct providing grounds for
57-25 disqualification under this article also constitutes a ground for
58-1 suspension, revocation, cancellation, or denial under any of those
58-2 laws.
58-3 SECTION 24. Section 4, Chapter 209, Acts of the 53rd
58-4 Legislature, Regular Session, 1953 (Article 6701c-1, Vernon's Texas
58-5 Civil Statutes), is amended to read as follows:
58-6 Sec. 4. Such lease, memorandum, or agreement as required by
58-7 Section 2 of this Act shall contain or provide, but shall not be
58-8 limited to, the name and address of the registered owner of such
58-9 commercial motor vehicle or truck-tractor, the name and address of
58-10 the person other than the owner under whose supervision, direction,
58-11 and control the vehicle will be operated, the actual consideration,
58-12 the term, the commodity or commodities to be transported under such
58-13 lease, memorandum, or agreement and a full description of the
58-14 commercial motor vehicle or vehicles or truck-tractors covered
58-15 thereby, and except as to leases between regulated carriers subject
58-16 to the jurisdiction of the Railroad Commission of Texas or the
58-17 Interstate Commerce Commission, that the operation of such vehicle
58-18 shall be under the full and complete control and supervision of the
58-19 person other than the registered owner, <that the person other than
58-20 the registered owner shall provide for each vehicle during the term
58-21 of such lease, memorandum or agreement proof of financial
58-22 responsibility as defined in the Texas Motor Vehicle
58-23 Safety-Responsibility Act, as amended (Article 6701h, Vernon's
58-24 Texas Civil Statutes),> and shall state that such commercial motor
58-25 vehicle or vehicles or truck-tractors are not the subject of any
59-1 other such lease, memorandum, or agreement which shall have been
59-2 filed with the Department of Public Safety in accordance with
59-3 Section 2 of this Act and which is still in effect, unless the
59-4 lease, memorandum, or agreement is otherwise required by law.
59-5 All information contained in any lease, memorandum, or
59-6 agreement filed with the Department as required by Section 2 of
59-7 this Act shall, with the exception of the name and address of the
59-8 registered owner, the name and address of the person other than the
59-9 owner, under whose supervision, direction and control the same is
59-10 being operated, and a full description of the commercial motor
59-11 vehicle or truck-tractor covered thereby, shall be for the
59-12 confidential use of the Department; except, however, that the
59-13 Department of Public Safety may make such information available to
59-14 the law enforcement officers of the Interstate Commerce Commission,
59-15 and may further use such information in any judicial proceeding
59-16 brought in the name of the State of Texas.
59-17 SECTION 25. Section 47(a), Uniform Act Regulating Traffic on
59-18 Highways (Article 6701d, Vernon's Texas Civil Statutes), is amended
59-19 to read as follows:
59-20 (a) Except as provided by Subsection (b) of this section,
59-21 all accident reports made as required by this Act <or Section 4,
59-22 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
59-23 Vernon's Texas Civil Statutes), and its subsequent amendments>, by
59-24 persons involved in accidents, by garages, or by peace officers
59-25 shall be without prejudice to the individual so reporting and shall
60-1 be privileged and for the confidential use of the Department and
60-2 agencies of the United States, this state, or local governments of
60-3 this state having use for the records for accident prevention
60-4 purposes.
60-5 SECTION 26. Section 107F, Uniform Act Regulating Traffic on
60-6 Highways (Article 6701d, Vernon's Texas Civil Statutes), is amended
60-7 to read as follows:
60-8 Sec. 107F. Identification Required for Vehicle Near Mexican
60-9 Border. On the demand of a peace officer within 250 feet of the
60-10 Mexican border at a checkpoint authorized by Section 411.0095,
60-11 Government Code, a driver of a vehicle shall produce a valid
60-12 driver's license <and proof of compliance with the Texas Motor
60-13 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
60-14 Civil Statutes)>.
60-15 SECTION 27. Section 140(a), Uniform Act Regulating Traffic
60-16 on Highways (Article 6701d, Vernon's Texas Civil Statutes), is
60-17 amended to read as follows:
60-18 (a) Every motor vehicle, trailer, semitrailer, pole trailer,
60-19 or mobile home, registered in this state and operated on the
60-20 highways of this state, shall have the tires, brake system
60-21 (including power brake unit), lighting equipment, horns and warning
60-22 devices, mirrors, windshield wipers, front seat belts in vehicles
60-23 where seat belt anchorages were part of the manufacturer's original
60-24 equipment on the vehicle, steering system (including power
60-25 steering), wheel assembly, safety guards or flaps if required by
61-1 Section 139A of this Act, tax decal if required by Section 141(d)
61-2 of this Act, sunscreening devices unless the vehicle is exempt from
61-3 sunscreen device restrictions under Section 134C(k) or (l) of this
61-4 Act, exhaust system, and exhaust emission system inspected at
61-5 state-appointed inspection stations or by State Inspectors as
61-6 hereinafter provided. Provisions relating to the inspection of
61-7 trailers, semitrailers, pole trailers, or mobile homes apply only
61-8 when the actual gross weight or the registered gross weight of such
61-9 vehicles is greater than four thousand five hundred (4,500) pounds.
61-10 Only the mechanism and equipment designated in this section may be
61-11 inspected, and the owner shall not be required to have any other
61-12 equipment or part of his motor vehicle inspected as a prerequisite
61-13 for the issuance of an inspection certificate. <At the time of
61-14 inspection the owner or operator shall furnish evidence of
61-15 financial responsibility. The evidence of financial responsibility
61-16 may be shown in the manner specified under Section 1B(a), Texas
61-17 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
61-18 Texas Civil Statutes). A personal automobile insurance policy
61-19 used as evidence of financial responsibility under this subsection
61-20 must be written for a term of 30 days or more as required by
61-21 Article 5.06, Insurance Code. An inspection certificate may not be
61-22 issued for a vehicle for which the owner or operator fails to
61-23 furnish the required evidence of financial responsibility. An
61-24 inspection facility or station is not liable to any person,
61-25 including a third party, for issuing an inspection certificate in
62-1 reliance on evidence of financial responsibility submitted to the
62-2 facility or station. If the inspection facility or station is the
62-3 seller of a motor vehicle, the inspection facility or station may
62-4 rely on an oral insurance binder.>
62-5 SECTION 28. Section 143A(a), Uniform Act Regulating Traffic
62-6 on Highways (Article 6701d, Vernon's Texas Civil Statutes), is
62-7 amended to read as follows:
62-8 (a) When a person is charged with a misdemeanor offense
62-9 under this Act, other than a violation of Section 39, 40, 51, 104,
62-10 or 186 or a serious traffic violation as defined in Section 3(26),
62-11 Texas Commercial Driver's License Act (Article 6687b-2, Revised
62-12 Statutes), committed while operating a motor vehicle, the defendant
62-13 shall be advised by the court of his right to successfully complete
62-14 a driving safety course and the court:
62-15 (1) in its discretion may defer proceedings and allow
62-16 the person 90 days to present a uniform certificate of course
62-17 completion as evidence that, subsequent to the alleged act, the
62-18 person has successfully completed a driving safety course approved
62-19 under the Texas Driver and Traffic Safety Education Act (Article
62-20 4413(29c), Vernon's Texas Civil Statutes); or
62-21 (2) shall defer proceedings and allow the person 90
62-22 days to present a uniform certificate of course completion as
62-23 written evidence that, subsequent to the alleged act, the person
62-24 has successfully completed a driving safety course approved under
62-25 the Texas Driver and Traffic Safety Education Act (Article
63-1 4413(29c), Vernon's Texas Civil Statutes), if:
63-2 (A) the person enters a plea in person or in
63-3 writing of No Contest or Guilty and presents to the court an oral
63-4 request or a written request, in person or by mail postmarked on or
63-5 before the answer date on the citation, to take a course;
63-6 (B) the court enters judgment on the person's
63-7 plea of No Contest or Guilty at the time the plea is made but
63-8 defers imposition of the judgment for 90 days;
63-9 (C) the person has a valid Texas driver's
63-10 license or permit;
63-11 (D) the person's driving record as maintained by
63-12 the Texas Department of Public Safety does not indicate successful
63-13 completion of a driving safety course under this subdivision within
63-14 the one year immediately preceding the date of the alleged offense;
63-15 (E) the person files an affidavit with the court
63-16 stating that the person is not in the process of taking a course
63-17 under this subdivision and has not completed a course under this
63-18 subdivision that is not yet reflected on the person's driving
63-19 record; and
63-20 (F) the offense charged is for an offense
63-21 covered by this section other than speeding 25 miles per hour or
63-22 more over the posted speed limit at the place where the alleged
63-23 offense occurred<; and>
63-24 <(G) the person provides proof of financial
63-25 responsibility as required by Section 1A, Texas Motor Vehicle
64-1 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
64-2 Statutes)>.
64-3 SECTION 29. Section 1(b), Chapter 302, Acts of the 55th
64-4 Legislature, Regular Session, 1957 (Article 6701l-4, Vernon's Texas
64-5 Civil Statutes), is amended to read as follows:
64-6 (b) As used in this section, the term "any traffic law of
64-7 this state" shall include the following statutes:
64-8 (1) Chapter 88, General Laws, Acts of the 41st
64-9 Legislature, 2nd Called Session, 1929 (Article 6675a-1 et seq.,
64-10 Vernon's Texas Civil Statutes);
64-11 (2) Chapter 338, Acts of the 64th Legislature, Regular
64-12 Session, 1975 (Article 6675a-5e.1, Vernon's Texas Civil Statutes);
64-13 (3) Article 6675b-1, Revised Statutes;
64-14 (4) Article 6675b-2, Revised Statutes;
64-15 (5) Article 6675b-3, Revised Statutes;
64-16 (6) Article 6675b-4, Revised Statutes;
64-17 (7) Article 6675b-5, Revised Statutes;
64-18 (8) Article 6675b-6, Revised Statutes;
64-19 (9) Article 6675b-7, Revised Statutes;
64-20 (10) Chapter 173, Acts of the 47th Legislature,
64-21 Regular Session, 1941 (Article 6687b, Vernon's Texas Civil
64-22 Statutes);
64-23 (11) Chapter 329, Acts of the 60th Legislature,
64-24 Regular Session, 1967 (Article 6701c-3, Vernon's Texas Civil
64-25 Statutes);
65-1 (12) Uniform Act Regulating Traffic on Highways
65-2 (Article 6701d, Vernon's Texas Civil Statutes); and
65-3 (13) Chapter 42, General Laws, Acts of the 41st
65-4 Legislature, 2nd Called Session, 1929 (Article 6701d-11, Vernon's
65-5 Texas Civil Statutes)<; and>
65-6 <(14) Texas Motor Vehicle Safety-Responsibility Act
65-7 (Article 6701h, Vernon's Texas Civil Statutes)>.
65-8 SECTION 30. The following laws are repealed:
65-9 (1) Articles 5.06-1 and 5.06-3, Insurance Code;
65-10 (2) Section 2a, Chapter 88, General Laws, Acts of the
65-11 41st Legislature, 2nd Called Session, 1929 (Article 6675a-2a,
65-12 Vernon's Texas Civil Statutes);
65-13 (3) Section 5, Chapter 517, Acts of the 58th
65-14 Legislature, 1963 (Article 6675a-6c, Vernon's Texas Civil
65-15 Statutes);
65-16 (4) Section 6(c), Chapter 173, Acts of the 47th
65-17 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
65-18 Civil Statutes);
65-19 (5) Section 24(l), Chapter 173, Acts of the 47th
65-20 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
65-21 Civil Statutes); and
65-22 (6) the Texas Motor Vehicle Safety-Responsibility Act
65-23 (Article 6701h, Vernon's Texas Civil Statutes).
65-24 SECTION 31. (a) Except as provided by Subsection (b) of
65-25 this section, this Act takes effect September 1, 1995.
66-1 (b) Sections 10-30 of this Act take effect January 1, 1996.
66-2 (c) This Act applies only to an insurance policy that is
66-3 delivered, issued for delivery, or renewed on or after January 1,
66-4 1996. A policy that is delivered, issued for delivery, or renewed
66-5 before January 1, 1996, is governed by the law as it existed
66-6 immediately before the effective date of this Act, and that law is
66-7 continued in effect for that purpose.
66-8 (d) Subchapters I and J, Chapter 27, Insurance Code, as
66-9 added by this Act, apply only to an action to recover damages for
66-10 accidental injury that accrues on or after January 1, 1996. An
66-11 action that accrues before January 1, 1996, is governed by the law
66-12 in effect at the time the action accrues, and that law is continued
66-13 in effect for that purpose.
66-14 (e) The change in law made by this Act applies only to the
66-15 punishment for an offense committed on or after January 1, 1996.
66-16 For purposes of this section, an offense is committed before the
66-17 effective date of this Act if any element of the offense occurs
66-18 before the effective date.
66-19 (f) An offense committed before January 1, 1996, is covered
66-20 by the law in effect when the offense was committed, and the former
66-21 law is continued in effect for this purpose.
66-22 SECTION 32. The importance of this legislation and the
66-23 crowded condition of the calendars in both houses create an
66-24 emergency and an imperative public necessity that the
66-25 constitutional rule requiring bills to be read on three several
67-1 days in each house be suspended, and this rule is hereby suspended.