By Garcia                                             H.B. No. 1265

         75R4966 DAK-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the recovery of and insurance coverage for exemplary

 1-3     damages against a person for harm arising from the person's

 1-4     operation of a motor vehicle while intoxicated.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 41.002, Civil Practice and Remedies Code,

 1-7     is amended by adding Subsection (e) to read as follows:

 1-8           (e)  Notwithstanding any provision to the contrary, this

 1-9     chapter does not apply to an action to recover exemplary damages

1-10     against a person for harm arising from the person's operation of a

1-11     motor vehicle while intoxicated, as that term is defined by Section

1-12     49.01, Penal Code.

1-13           SECTION 2.  Subchapter A, Chapter 5, Insurance Code, is

1-14     amended by adding Article 5.06-7 to read as follows:

1-15           Art. 5.06-7.  MOTOR VEHICLE COVERAGE FOR CERTAIN EXEMPLARY

1-16     DAMAGES.  A personal automobile policy or any similar policy form

1-17     adopted or approved by the commissioner under Article 5.06 of this

1-18     code that covers liability arising out of ownership, maintenance,

1-19     or use of a motor vehicle must provide coverage for exemplary

1-20     damages against a covered person for harm arising from the person's

1-21     operation of the motor vehicle while intoxicated, as that term is

1-22     defined by Section 49.01, Penal Code.

1-23           SECTION 3.  This Act takes effect September 1, 1997, and

1-24     applies only to a cause of action that accrues on or after that

 2-1     date.  An action that accrued before the effective date of this Act

 2-2     is governed by the law applicable to the action immediately before

 2-3     the effective date of this Act, and that law is continued in effect

 2-4     for that purpose.

 2-5           SECTION 4.  The importance of this legislation and the

 2-6     crowded condition of the calendars in both houses create an

 2-7     emergency and an imperative public necessity that the

 2-8     constitutional rule requiring bills to be read on three several

 2-9     days in each house be suspended, and this rule is hereby suspended.

2-10                          COMMITTEE AMENDMENT NO. 1

2-11           Amend H.B. 1265 to read as follows:

2-12           (1)  On page 1, remove lines 20 through 22 in SECTION 2.  Add

2-13     the following:

2-14     damages, up to the policy limits, against a covered person for harm

2-15     arising from the person's operation of the motor vehicle while

2-16     intoxicated, as that term is defined by Section 49.01, Penal Code.

2-17                                                                 Goodman