1-1     By:  Wise, et al. (Senate Sponsor - Lucio)            H.B. No. 1498

 1-2           (In the Senate - Received from the House May 6, 1997;

 1-3     May 7, 1997, read first time and referred to Committee on Economic

 1-4     Development; May 18, 1997, reported favorably by the following

 1-5     vote:  Yeas 10, Nays 0; May 18, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to motor vehicle insurance rates for certain individuals

 1-9     with good driving records who are members of youth groups.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Subchapter A, Chapter 5, Insurance Code, is

1-12     amended by adding Article 5.03-5 to read as follows:

1-13           Art. 5.03-5.  PREMIUM DISCOUNT FOR CERTAIN YOUTH GROUP

1-14     MEMBERS

1-15           Sec. 1.  DEFINITIONS.  In this article:

1-16                 (1)  "Applicant" means an individual who applies under

1-17     this article for a discount in motor vehicle insurance premiums.

1-18                 (2)  "Driving record" means an individual's history of

1-19     convictions of violations of traffic safety regulations.

1-20                 (3)  "Insurer" means an insurance company,

1-21     interinsurance exchange, mutual, capital stock company, fraternal

1-22     benefit society, local mutual aid association, county mutual,

1-23     reciprocal, association, Lloyd's plan, or other entity writing

1-24     motor vehicle insurance in this state.  The term includes an

1-25     affiliate, as defined by Section 2, Article 21.49-1, of this code.

1-26                 (4)  "Motor vehicle" means any private passenger

1-27     vehicle that:

1-28                       (A)  is registered in this state; and

1-29                       (B)  has a gross weight of 25,000 pounds or less.

1-30                 (5)  "Traffic safety regulation" means a law or

1-31     ordinance of a state or a political subdivision of a state relating

1-32     to the operation of motor vehicles other than a regulation relating

1-33     to pedestrians or to the parking of motor vehicles.

1-34                 (6)  "Youth group" means a nonprofit organization that:

1-35                       (A)  is chartered as a national or statewide

1-36     organization;

1-37                       (B)  is organized and operated exclusively for

1-38     youth recreational or educational purposes and that includes, as

1-39     part of the group's program, components relating to:

1-40                             (i)  prevention of drug abuse;

1-41                             (ii)  character development;

1-42                             (iii)  citizenship training; and

1-43                             (iv)  physical and mental fitness;

1-44                       (C)  has been in existence for at least 10 years;

1-45     and

1-46                       (D)  has a membership of which at least 65

1-47     percent is younger than 22 years of age.

1-48           Sec. 2.  DISCOUNT AUTHORIZED; ELIGIBILITY CONDITIONS FOR

1-49     DRIVERS.  (a)  An insurer who delivers or issues for delivery in

1-50     this state a motor vehicle insurance policy, on receipt of written

1-51     verification from the insured that the insured or a family member

1-52     covered by the policy is eligible under Subsection (b) of this

1-53     section, may grant a discount in the amount provided by Subsection

1-54     (f) of this section in the premiums charged for the liability,

1-55     medical payments, personal injury protection, and collision

1-56     coverage only for the motor vehicle designated to be driven by the

1-57     eligible person.

1-58           (b)  To be eligible for the discount authorized under

1-59     Subsection (a) of this section, an applicant must:

1-60                 (1)  be licensed to drive in this state;

1-61                 (2)  be a member of a youth group, including an adult

1-62     leader, board member, or officer of the group;

1-63                 (3)  be younger than 22 years of age or an adult

1-64     leader, board member, or officer of the group;

 2-1                 (4)  have held a driver's license for at least three

 2-2     years on the date the application is filed;

 2-3                 (5)  have not, during the three years preceding the

 2-4     date of the application, been convicted of a violation of a traffic

 2-5     safety regulation that involves a moving vehicle; and

 2-6                 (6)  have not, during the three years preceding the

 2-7     date of the application, been found at fault in a motor vehicle

 2-8     accident.

 2-9           (c)  An applicant is not eligible to receive a discount under

2-10     this article if the applicant has been convicted of an offense

2-11     relating to the operation of a motor vehicle under:

2-12                 (1)  Chapter 49, Penal Code;

2-13                 (2)  Article 6701l-1, Revised Statutes, as that statute

2-14     existed before repeal by Chapter 900, Acts of the 73rd Legislature,

2-15     Regular Session, 1993, or Section 19.05, Penal Code, as that

2-16     statute existed before amendment by Chapter 900, Acts of the 73rd

2-17     Legislature, Regular Session, 1993; or

2-18                 (3)  another state's statute similar to a statute

2-19     described by Subdivision (1) or (2) of this subsection.

2-20           (d)  For purposes of Subsections (b) and (c) of this section,

2-21     an applicant is considered to have been convicted in a case if:

2-22                 (1)  a sentence is imposed; or

2-23                 (2)  the applicant receives community supervision or

2-24     analogous treatment under the law of another state.

2-25           (e)  The commissioner by rule may establish additional

2-26     requirements for receipt of a discount under this article.

2-27           (f)  The commissioner by rule shall set the amount of the

2-28     discount applicable under this article and may adopt other rules

2-29     necessary for the implementation of this article, including rules

2-30     identifying youth groups whose members are eligible for a discount

2-31     under this article.

2-32           Sec. 3.  INELIGIBILITY; REVOCATION OF DISCOUNT.  (a)  A

2-33     person may not continue to receive a discount under this article

2-34     after the first date on which the person fails to satisfy the

2-35     requirements of Section 2 of this article unless the person

2-36     reestablishes eligibility under this article.

2-37           (b)  A person may not receive a discount under this article

2-38     at the same time the person is receiving a discount under Article

2-39     5.03-3 of this code.

2-40           (c)  An insurer shall revoke a discount under this article if

2-41     an applicant for the discount knowingly provides false information

2-42     in or with the application.

2-43           SECTION 2.  (a)  This Act takes effect September 1, 1997.

2-44           (b)  This Act applies only to a motor vehicle insurance

2-45     policy that is delivered, issued for delivery, or renewed on or

2-46     after January 1, 1998.  A policy that is delivered, issued for

2-47     delivery, or renewed before January 1, 1998, is governed by the law

2-48     as it existed immediately before the effective date of this Act,

2-49     and that law is continued in effect for that purpose.

2-50           SECTION 3.  The importance of this legislation and the

2-51     crowded condition of the calendars in both houses create an

2-52     emergency and an imperative public necessity that the

2-53     constitutional rule requiring bills to be read on three several

2-54     days in each house be suspended, and this rule is hereby suspended.

2-55                                  * * * * *