1-1 AN ACT 1-2 relating to motor vehicle insurance rates for certain individuals 1-3 with good driving records who are members of youth groups. 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 5.03-5 to read as follows: 1-7 Art. 5.03-5. PREMIUM DISCOUNT FOR CERTAIN YOUTH GROUP 1-8 MEMBERS 1-9 Sec. 1. DEFINITIONS. In this article: 1-10 (1) "Applicant" means an individual who applies under 1-11 this article for a discount in motor vehicle insurance premiums. 1-12 (2) "Driving record" means an individual's history of 1-13 convictions of violations of traffic safety regulations. 1-14 (3) "Insurer" means an insurance company, 1-15 interinsurance exchange, mutual, capital stock company, fraternal 1-16 benefit society, local mutual aid association, county mutual, 1-17 reciprocal, association, Lloyd's plan, or other entity writing 1-18 motor vehicle insurance in this state. The term includes an 1-19 affiliate, as defined by Section 2, Article 21.49-1, of this 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 (6) "Youth group" means a nonprofit organization that: 2-5 (A) is chartered as a national or statewide 2-6 organization; 2-7 (B) is organized and operated exclusively for 2-8 youth recreational or educational purposes and that includes, as 2-9 part of the group's program, components relating to: 2-10 (i) prevention of drug abuse; 2-11 (ii) character development; 2-12 (iii) citizenship training; and 2-13 (iv) physical and mental fitness; 2-14 (C) has been in existence for at least 10 years; 2-15 and 2-16 (D) has a membership of which at least 65 2-17 percent is younger than 22 years of age. 2-18 Sec. 2. DISCOUNT AUTHORIZED; ELIGIBILITY CONDITIONS FOR 2-19 DRIVERS. (a) An insurer who delivers or issues for delivery in 2-20 this state a motor vehicle insurance policy, on receipt of written 2-21 verification from the insured that the insured or a family member 2-22 covered by the policy is eligible under Subsection (b) of this 2-23 section, may grant a discount in the amount provided by Subsection 2-24 (f) of this section in the premiums charged for the liability, 2-25 medical payments, personal injury protection, and collision 2-26 coverage only for the motor vehicle designated to be driven by the 2-27 eligible person. 3-1 (b) To be eligible for the discount authorized under 3-2 Subsection (a) of this section, an applicant must: 3-3 (1) be licensed to drive in this state; 3-4 (2) be a member of a youth group, including an adult 3-5 leader, board member, or officer of the group; 3-6 (3) be younger than 22 years of age or an adult 3-7 leader, board member, or officer of the group; 3-8 (4) have held a driver's license for at least three 3-9 years on the date the application is filed; 3-10 (5) have not, during the three years preceding the 3-11 date of the application, been convicted of a violation of a traffic 3-12 safety regulation that involves a moving vehicle; and 3-13 (6) have not, during the three years preceding the 3-14 date of the application, been found at fault in a motor vehicle 3-15 accident. 3-16 (c) An applicant is not eligible to receive a discount under 3-17 this article if the applicant has been convicted of an offense 3-18 relating to the operation of a motor vehicle under: 3-19 (1) Chapter 49, Penal Code; 3-20 (2) Article 6701l-1, Revised Statutes, as that statute 3-21 existed before repeal by Chapter 900, Acts of the 73rd Legislature, 3-22 Regular Session, 1993, or Section 19.05, Penal Code, as that 3-23 statute existed before amendment by Chapter 900, Acts of the 73rd 3-24 Legislature, Regular Session, 1993; or 3-25 (3) another state's statute similar to a statute 3-26 described by Subdivision (1) or (2) of this subsection. 3-27 (d) For purposes of Subsections (b) and (c) of this section, 4-1 an applicant is considered to have been convicted in a case if: 4-2 (1) a sentence is imposed; or 4-3 (2) the applicant receives community supervision or 4-4 analogous treatment under the law of another state. 4-5 (e) The commissioner by rule may establish additional 4-6 requirements for receipt of a discount under this article. 4-7 (f) The commissioner by rule shall set the amount of the 4-8 discount applicable under this article and may adopt other rules 4-9 necessary for the implementation of this article, including rules 4-10 identifying youth groups whose members are eligible for a discount 4-11 under this article. 4-12 Sec. 3. INELIGIBILITY; REVOCATION OF DISCOUNT. (a) A 4-13 person may not continue to receive a discount under this article 4-14 after the first date on which the person fails to satisfy the 4-15 requirements of Section 2 of this article unless the person 4-16 reestablishes eligibility under this article. 4-17 (b) A person may not receive a discount under this article 4-18 at the same time the person is receiving a discount under Article 4-19 5.03-3 of this code. 4-20 (c) An insurer shall revoke a discount under this article if 4-21 an applicant for the discount knowingly provides false information 4-22 in or with the application. 4-23 SECTION 2. (a) This Act takes effect September 1, 1997. 4-24 (b) This Act applies only to a motor vehicle insurance 4-25 policy that is delivered, issued for delivery, or renewed on or 4-26 after January 1, 1998. A policy that is delivered, issued for 4-27 delivery, or renewed before January 1, 1998, is governed by the law 5-1 as it existed immediately before the effective date of this Act, 5-2 and that law is continued in effect for that purpose. 5-3 SECTION 3. The importance of this legislation and the 5-4 crowded condition of the calendars in both houses create an 5-5 emergency and an imperative public necessity that the 5-6 constitutional rule requiring bills to be read on three several 5-7 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 1498 was passed by the House on May 5, 1997, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 1498 was passed by the Senate on May 22, 1997, by a viva-voce vote. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor