By Goolsby H.B. No. 804 75R4392 DLF-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to motor vehicle insurance rates for certain individuals 1-3 with good driving records. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter A, Chapter 5, Insurance Code, is 1-6 amended by adding Article 5.03-4 to read as follows: 1-7 Art. 5.03-4. YOUNG DRIVERS' PREMIUM DISCOUNT 1-8 Sec. 1. DEFINITIONS. In this article: 1-9 (1) "Applicant" means an individual who applies under 1-10 this article for a discount in motor vehicle insurance premiums. 1-11 (2) "Driving record" means an individual's history of 1-12 convictions of violations of traffic safety regulations. 1-13 (3) "Insurer" means an insurance company, 1-14 interinsurance exchange, mutual, capital stock company, fraternal 1-15 benefit society, local mutual aid association, county mutual, 1-16 reciprocal, association, Lloyd's plan, or other entity writing 1-17 motor vehicle insurance in this state. The term includes an 1-18 affiliate, as defined by Section 2, Article 21.49-1, Insurance 1-19 Code. 1-20 (4) "Motor vehicle" means any private passenger 1-21 vehicle that: 1-22 (A) is registered in this state; and 1-23 (B) has a gross weight of 25,000 pounds or less. 1-24 (5) "Traffic safety regulation" means a law or 2-1 ordinance of a state or a political subdivision of a state relating 2-2 to the operation of motor vehicles other than a regulation relating 2-3 to pedestrians or to the parking of motor vehicles. 2-4 Sec. 2. DISCOUNT AUTHORIZED; ELIGIBILITY CONDITIONS FOR 2-5 DRIVERS. (a) An insurer who delivers or issues for delivery in 2-6 this state a motor vehicle insurance policy, on receipt of written 2-7 verification from the insured that the insured or a family member 2-8 covered by the policy is eligible under Subsection (b) of this 2-9 section, may grant a discount in the amount provided by Subsection 2-10 (f) of this section in the premiums charged for the liability, 2-11 medical payments, personal injury protection, and collision 2-12 coverage only for the motor vehicle designated to be driven by the 2-13 eligible person. 2-14 (b) To be eligible for the discount authorized under 2-15 Subsection (a) of this section, an applicant must: 2-16 (1) be licensed to drive in this state; 2-17 (2) be under 25 years of age, if male, or under 21 2-18 years of age, if female; 2-19 (3) have held a driver's license for at least three 2-20 years on the date that the application is filed; 2-21 (4) have not, during the three years preceding the 2-22 date of the application, been convicted of a violation of a traffic 2-23 safety regulation that involves a moving vehicle; and 2-24 (5) have not, during the three years preceding the 2-25 date of the application, been found at fault in a motor vehicle 2-26 accident. 2-27 (c) An applicant is not eligible to receive a discount under 3-1 this article if the applicant has been convicted of an offense 3-2 relating to the operation of a motor vehicle under: 3-3 (1) Chapter 49, Penal Code; 3-4 (2) Article 6701l-1, Revised Statutes, as that statute 3-5 existed before repeal by Chapter 900, Acts of the 73rd Legislature, 3-6 Regular Session, 1993, or Section 19.05, Penal Code, as that 3-7 statute existed before amendment by Chapter 900, Acts of the 73rd 3-8 Legislature, Regular Session, 1993; or 3-9 (3) another state's statute similar to a statute 3-10 described by Subdivision (1) or (2). 3-11 (d) For purposes of Subsections (b) and (c) of this section, 3-12 an applicant is considered to have been convicted in a case if: 3-13 (1) a sentence is imposed; or 3-14 (2) the applicant receives community supervision or 3-15 analogous treatment under the law of another state. 3-16 (e) The commissioner by rule may establish additional 3-17 requirements for receipt of a discount under this article. 3-18 (f) The commissioner by rule shall set the amount of the 3-19 discount applicable under this article and may adopt other rules 3-20 necessary for the implementation of this article. 3-21 Sec. 3. INELIGIBILITY; REVOCATION OF DISCOUNT. (a) A 3-22 person may not continue to receive a discount under this article 3-23 after the first date on which the person fails to satisfy the 3-24 requirements of Section 2 of this article unless the person 3-25 reestablishes eligibility under this article. 3-26 (b) A person may not receive a discount under this article 3-27 at the same time the person is receiving a discount under Article 4-1 5.03-3 of this code. 4-2 (c) An insurer shall revoke a discount under this article if 4-3 an applicant for the discount knowingly provides false information 4-4 in or with the application. 4-5 SECTION 2. (a) This Act takes effect September 1, 1997. 4-6 (b) This Act applies only to a motor vehicle insurance 4-7 policy that is delivered, issued for delivery, or renewed on or 4-8 after January 1, 1998. A policy that is delivered, issued for 4-9 delivery, or renewed before January 1, 1998, is governed by the law 4-10 as it existed immediately before the effective date of this Act, 4-11 and that law is continued in effect for that purpose. 4-12 SECTION 3. The importance of this legislation and the 4-13 crowded condition of the calendars in both houses create an 4-14 emergency and an imperative public necessity that the 4-15 constitutional rule requiring bills to be read on three several 4-16 days in each house be suspended, and this rule is hereby suspended.