By Corte                                        H.B. No. 3401

      75R6383 DLF-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to liability for injury arising out of a motor vehicle

 1-3     accident.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Title 4, Civil Practice and Remedies Code, is

 1-6     amended by adding Chapter 92 to read as follows:

 1-7                    CHAPTER 92.  PERSONAL RESPONSIBILITY

 1-8                         FOR MOTOR VEHICLE ACCIDENTS

 1-9           Sec. 92.001.  DEFINITIONS.  In this chapter:

1-10                 (1)  "Claimant" means a party seeking to recover

1-11     damages, including a plaintiff, counterclaimant, cross-claimant, or

1-12     third-party plaintiff.

1-13                 (2)  "Economic damages" means compensatory damages for

1-14     pecuniary loss. The term does not include exemplary damages or

1-15     damages for physical and mental anguish, loss of consortium,

1-16     disfigurement, physical impairment, or loss of companionship and

1-17     society.

1-18                 (3)  "Exemplary damages" has the meaning assigned by

1-19     Section 41.001.

1-20                 (4)  "Noneconomic damages" means damages other than

1-21     economic damages.

1-22           Sec. 92.002.  SCOPE OF CHAPTER.  This chapter applies only to

1-23     a civil action to recover damages arising out of an accident

1-24     involving the operation or use of a motor vehicle.

 2-1           Sec. 92.003.  LIMITATION ON DAMAGES.  (a)  A claimant may not

 2-2     recover noneconomic damages if:

 2-3                 (1)  the claimant was:

 2-4                       (A)  operating a motor vehicle, at the time of

 2-5     the accident, while intoxicated in violation of Section 49.04,

 2-6     Penal Code, or another law of this state relating to the operation

 2-7     of a motor vehicle while intoxicated; and

 2-8                       (B)  convicted of an offense described by

 2-9     Paragraph (A); or

2-10                 (2)  the claimant was:

2-11                       (A)  operating the motor vehicle, at the time of

2-12     the accident, in violation of Chapter 601, Transportation Code, or

2-13     another law of this state requiring financial responsibility while

2-14     operating or using a motor vehicle; and

2-15                       (B)  convicted of an offense described by

2-16     Paragraph (A).

2-17           (b)  Subsection (a)  does not apply to a claimant described

2-18     by Subsection (a)(2) if the claimant was injured by another person

2-19     who was:

2-20                 (1)  operating a motor vehicle, at the time of the

2-21     accident, while intoxicated in violation of Section 49.04, Penal

2-22     Code, or another law of this state relating to the operation of a

2-23     motor vehicle while intoxicated; and

2-24                 (2)  convicted of an offense described by Subdivision

2-25     (1).

2-26           Sec. 92.004.  LIABILITY OF INSURER.  (a)  An insurer is not

2-27     directly or indirectly liable under a motor vehicle liability

 3-1     insurance policy or under uninsured or underinsured motorist

 3-2     coverage to indemnify a claimant described by Section 92.003(a) for

 3-3     noneconomic damages.  This section does not apply to a claimant

 3-4     described by Section 92.003(b).

 3-5           (b)  Notwithstanding Article 21.55, Insurance Code, or any

 3-6     other law, an insurer may delay payment of all or part of a claim

 3-7     that is attributable to noneconomic damages if:

 3-8                 (1)  a criminal action for an offense described by

 3-9     Section 92.003 has been brought against the claimant; or

3-10                 (2)  the insurer reasonably believes that a criminal

3-11     action for an offense described by Section 92.003 may be brought

3-12     against the claimant.

3-13           (c)  An insurer shall make or deny payment on any part of a

3-14     claim that is attributable to noneconomic damages promptly after

3-15     the resolution of any criminal action against the claimant.

3-16           (d)  A delay of payment of all or part of a claim in

3-17     accordance with Subsection (b) is not an unfair method of

3-18     competition or an unfair or deceptive act or practice in the

3-19     business of insurance for purposes of Article 21.21, Insurance

3-20     Code.

3-21           Sec. 92.005.  DERIVATIVE CLAIMS.  Except as provided by

3-22     Section 92.006, Section 92.003 applies to a claim for damages made

3-23     by a claimant other than a person described by Section 92.003(a)

3-24     if:

3-25                 (1)  the claimant's right to recovery results from

3-26     injury to a person described by Section 92.003(a), including a

3-27     claim for the wrongful death of the person or a claim for loss of

 4-1     consortium with or loss of companionship of the person; and

 4-2                 (2)  the right to recovery of the person described by

 4-3     Section 92.003(a) is barred by Section 92.003.

 4-4           Sec. 92.006.  EXCEPTION.  This chapter does not limit the

 4-5     award of exemplary damages for a wilful act or omission or gross

 4-6     neglect in a wrongful death action brought by or on behalf of a

 4-7     surviving spouse or heirs of the decedent's body, in accordance

 4-8     with Section 26, Article XVI, Texas Constitution.

 4-9           Sec. 92.007.  CONVICTION.  A person is convicted of an

4-10     offense for purposes of this chapter if:

4-11                 (1)  a sentence is imposed; or

4-12                 (2)  the person receives a fine, probation, or deferred

4-13     adjudication, without regard to whether the person admits guilt.

4-14           SECTION 2.  This Act applies only to a cause of action that

4-15     accrues on or after the effective date of this Act.  A cause of

4-16     action that accrues before the effective date of this Act is

4-17     governed by the law applicable to the cause of action immediately

4-18     before the effective date of this Act, and that law is continued in

4-19     effect for that purpose.

4-20           SECTION 3.  This Act takes effect September 1, 1997.

4-21           SECTION 4.  The importance of this legislation and the

4-22     crowded condition of the calendars in both houses create an

4-23     emergency and an imperative public necessity that the

4-24     constitutional rule requiring bills to be read on three several

4-25     days in each house be suspended, and this rule is hereby suspended.