SRC-JFA S.B. 1427 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1427
By: Nelson
Economic Development
4-28-97
As Filed


DIGEST 

Currently, Texas law requires all drivers to have proof of financial
responsibility, usually through a liability insurance policy.  This proof
must be provided in order to renew a driver's license, register a car or
have a car inspected.  However, some drivers are circumventing the law by
purchasing liability insurance in order to accomplish the above and then
cancelling the policy, thereby driving uninsured.  This bill would
prohibit a driver involved in a motor vehicle accident from recovering
noneconomic damages or exemplary damages if the person was not able to
show proof of financial responsibility at the time of the accident.  

PURPOSE

As proposed, S.B. 1427 prohibits a driver involved in a motor vehicle
accident from recovering noneconomic damages or exemplary damages if the
person was not able to show proof of financial responsibility at the time
of the accident.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 601A, Transportation Code, by adding Section
601.0085, as follows: 

Sec. 601.0085.  LIABILITY FOR INJURY TO OPERATOR WHO FAILS TO MAINTAIN
FINANCIAL RESPONSIBILITY.  Prohibits a person from obtaining 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 is the operator of a
motor vehicle involved in the accident; and is operating the motor vehicle
in violation of Section 601.051.  Provides that Subsection (a) applies to
a claim for damages made by a person whose right to recovery derives from
an injury to a person whose right to recovery of noneconomic and exemplary
damages would be barred under Subsection (a). Defines "exemplary damages"
and "noneconomic damages."  

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.