74R10848 DLF-D By Corte, et al. H.B. No. 164 Substitute the following for H.B. No. 164: By Counts C.S.H.B. No. 164 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to liability for injury arising from a motor vehicle 1-3 accident to a driver who fails to maintain financial 1-4 responsibility. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Article I, Texas Motor Vehicle 1-7 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil 1-8 Statutes), is amended by adding Section 1I to read as follows: 1-9 Sec. 1I. LIABILITY FOR INJURY TO OPERATOR WHO FAILS TO 1-10 MAINTAIN FINANCIAL RESPONSIBILITY. (a) A person may not obtain 1-11 noneconomic damages or exemplary damages in a civil action for 1-12 bodily injury, death, or damage to or destruction of property 1-13 arising out of a motor vehicle accident if, at the time of the 1-14 accident, the person: 1-15 (1) is the operator of a motor vehicle involved in the 1-16 accident; and 1-17 (2) is operating the motor vehicle in violation of 1-18 Section 1A of this Act. 1-19 (b) Except as provided by Subsection (c) of this section, 1-20 Subsection (a) of this section applies to a claim for damages made 1-21 by a person whose right to recovery derives from an injury to a 1-22 person whose right to recovery of noneconomic and exemplary damages 1-23 would be barred under Subsection (a), including a claim for 1-24 wrongful death or for loss of consortium or companionship. 2-1 (c) In an action governed by Section 26, Article 16, Texas 2-2 Constitution, exemplary damages may be awarded if the claimant 2-3 proves that the death with respect to which the claimant seeks 2-4 recovery of exemplary damages resulted from a wilful act or 2-5 omission or gross neglect. 2-6 (d) Each insurer that issues a policy of motor vehicle 2-7 insurance in this state to comply with the requirements of this 2-8 Act, including a Lloyd's plan insurer, county mutual insurer, or 2-9 reciprocal or interinsurance exchange, shall notify the person to 2-10 whom the policy is issued of the provisions of Subsections (a)-(c) 2-11 of this section. The notice required by this subsection shall be 2-12 made at the time the policy is initially issued and at any time 2-13 coverage under the policy is terminated. The commissioner of 2-14 insurance by rule shall adopt the form and content of the notice 2-15 required by this subsection. 2-16 (e) The Department shall post notice of the provisions of 2-17 Subsections (a)-(c) of this section at each facility of the 2-18 Department at which an in-person application for issuance or 2-19 renewal of a license may be made. 2-20 (f) A person who offers a driving safety course approved by 2-21 the Central Education Agency under the Texas Driver and Traffic 2-22 Safety Education Act (Article 4413(29c), Vernon's Texas Civil 2-23 Statutes) shall notify each student in writing of the provisions of 2-24 Subsections (a)-(c) of this section. The Central Education Agency 2-25 shall adopt the form and content of the notice required by this 2-26 subsection. At the option of the person who offers the course, the 2-27 notice may be included in approved course materials or provided 3-1 separately from those materials. 3-2 (g) In this section: 3-3 (1) "Noneconomic damages" means damages to compensate 3-4 the operator for a loss other than a pecuniary loss, including 3-5 damages for pain and suffering, mental anguish, loss associated 3-6 with disfigurement, and loss of companionship or consortium. 3-7 (2) "Exemplary damages" has the meaning assigned by 3-8 Section 41.001, Civil Practice and Remedies Code. 3-9 SECTION 2. This Act applies only to a cause of action that 3-10 accrues on or after the effective date of this Act. An action that 3-11 accrued before the effective date of this Act is governed by the 3-12 law applicable to the action immediately before the effective date 3-13 of this Act, and that law is continued in effect for that purpose. 3-14 SECTION 3. The importance of this legislation and the 3-15 crowded condition of the calendars in both houses create an 3-16 emergency and an imperative public necessity that the 3-17 constitutional rule requiring bills to be read on three several 3-18 days in each house be suspended, and this rule is hereby suspended, 3-19 and that this Act take effect and be in force from and after its 3-20 passage, and it is so enacted.