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