Amend CSHB 1357 as follows:
      (1)  On page 2, strike lines 20-27 and substitute the
following:
      SECTION 5.   Subchapter A, Chapter 601, Transportation Code,
is amended by adding Section 601.0085 to read as follows:
      Sec. 601.0085.  LIABILITY FOR INJURY TO OPERATOR WHO FAILS TO
MAINTAIN FINANCIAL RESPONSIBILITY.  (a)  A person may not obtain
noneconomic damages or exemplary damages in a civil action for
bodily injury, death, or damage to or destruction of property
arising out of a motor vehicle accident if, at the time of the
accident, the person:
            (1)  is the operator of a motor vehicle involved in the
accident; and
            (2)  is operating the motor vehicle in violation of
Section 601.051.
      (b)  Except as provided by Subsection (c), Subsection (a)
applies to a claim for damages made by a person whose right to
recovery derives from an injury to another person whose right to
recovery of noneconomic and exemplary damages would be barred under
Subsection (a), including a claim for wrongful death or for loss of
consortium or companionship.
      (c)  This section does not prohibit the recovery of exemplary
damages for a wilful act or omission or gross neglect in a wrongful
death action brought by or on behalf of a surviving spouse or heirs
of the decedent's body under a statute enacted pursuant to Section
26, Article XVI, Texas Constitution.  A claim for exemplary damages
described by this subsection is governed by Chapter 41, Civil
Practice and Remedies Code.
      (d)  Each insurer that issues a policy of motor vehicle
insurance in this state to comply with the requirements of this
chapter, including a Lloyd's plan insurer, county mutual insurer,
or reciprocal or interinsurance exchange, shall notify the person
to whom the policy is issued of the provisions of Subsections
(a)-(c).  The notice required by this subsection shall be made at
the time the policy is initially issued and at any time coverage
under the policy is terminated.  The commissioner of insurance by
rule shall adopt the form and content of the notice required by
this subsection.
      (e)  The department shall post notice of the provisions of
Subsections (a)-(c) at each facility of the department at which an
in-person application for issuance or renewal of a license may be
made.
      (f)  A person who offers a driving safety course approved by
the Texas Education Agency under the Texas Driver and Traffic
Safety Education Act (Article 4413(29c), Vernon's Texas Civil
Statutes) shall notify each student in writing of the provisions of
Subsections (a)-(c).  The Texas Education Agency shall adopt the
form and content of the notice required by this subsection.  At the
option of the person who offers the course, the notice may be
included in approved course materials or provided separately from
those materials.
      (g)  This section does not apply to a claim brought against a
person who, in connection with the accident, committed an act that
violates Chapter 49, Penal Code, without regard to whether the
person is criminally convicted of that offense.
      (h)  This section does not prohibit the person described by
Subsection (a)(1) from acting in a representative capacity to bring
suit on behalf of  another person injured in the accident, as next
friend or otherwise.
      (i)  In this section:
            (1)  "Noneconomic damages" means damages other than
compensatory damages for pecuniary loss.  The term includes damages
for physical pain and mental anguish, loss of consortium,
disfigurement, physical impairment, or loss of  companionship and
society.  The term does not include exemplary damages.
            (2)  "Exemplary damages"  has the meaning assigned by
Section 41.001, Civil Practice and Remedies Code.
      SECTION 6.  The commissioner of insurance shall conduct
hearings to determine the effects of this Act on automobile
liability insurance rates and shall report the findings of the
commissioner to the presiding officer of each house of the
legislature not later than December 1, 1998.
      SECTION 8.  (a)  This Act takes effect September 1, 1997.
      The change in law made by Section 601.0085, Transportation
Code, as added by this Act, applies only to a cause of action that
accrues on or after September 1, 1997.  An action that accrued
before the effective date of this Act is governed by the law
applicable to the action immediately before the effective date of
this Act, and that law is continued in effect for that purpose.