By Driver H.B. No. 90
76R1614 DWS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to an intermediate driver's license and to discounts in
1-3 motor vehicle insurance premiums for holders of that license.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. INTERMEDIATE DRIVER'S LICENSE
1-6 SECTION 1.01. Section 521.001(a), Transportation Code, is
1-7 amended by amending Subdivision (3) and adding Subdivision (9) to
1-8 read as follows:
1-9 (3) "Driver's license" means an authorization issued
1-10 by the department for the operation of a motor vehicle. The term
1-11 includes:
1-12 (A) a temporary license, [or] instruction
1-13 permit, or intermediate license; and
1-14 (B) an occupational license.
1-15 (9) "Traffic offense" means violation of a statute or
1-16 ordinance that regulates a driver's conduct or condition while
1-17 operating a motor vehicle.
1-18 SECTION 1.02. Section 521.123, Transportation Code, is
1-19 amended to read as follows:
1-20 Sec. 521.123. DESIGNATOR ON LICENSE ISSUED TO PERSON UNDER
1-21 21 YEARS OF AGE. The department shall:
1-22 (1) designate and clearly mark as a provisional
1-23 license each original, renewed, or duplicate driver's license
1-24 issued by the department to a person who is under 18 years of age;
2-1 [and]
2-2 (2) indicate "UNDER 21" on the face of each original,
2-3 renewed, or duplicate license issued to a person who is under 21
2-4 years of age;
2-5 (3) indicate "INSTRUCTION PERMIT" on the face of each
2-6 instruction permit; and
2-7 (4) indicate "INTERMEDIATE LICENSE" on the face of
2-8 each intermediate license.
2-9 SECTION 1.03. Subchapter K, Chapter 521, Transportation
2-10 Code, is amended by adding Section 521.2221 to read as follows:
2-11 Sec. 521.2221. INTERMEDIATE LICENSE. (a) The department
2-12 may issue an intermediate license to a person who:
2-13 (1) is 16 years of age or older but under 18 years of
2-14 age;
2-15 (2) meets the requirements imposed by Sections
2-16 521.204(2), (3), and (4) on an applicant for a Class C driver's
2-17 license; and
2-18 (3) requests to be issued an intermediate license.
2-19 (b) A person eligible to be issued an intermediate license
2-20 is not required to obtain an intermediate license but may obtain
2-21 any license for which the person is eligible. A person who holds
2-22 an intermediate license is eligible for a discount in the motor
2-23 vehicle insurance premium otherwise applicable to coverage for that
2-24 person as provided by Article 5.03-6, Insurance Code.
2-25 (c) A holder of an intermediate license may not operate a
2-26 motor vehicle at nighttime, as defined by Section 541.401, unless
2-27 the holder is accompanied by the holder's parent or guardian.
3-1 (d) The department may issue a Class A, B, or C driver's
3-2 license to an applicant under 18 years of age who holds an
3-3 intermediate license only if the applicant has held the
3-4 intermediate license for at least six months preceding the date of
3-5 the application.
3-6 (e) The department may not issue a Class A, B, or C driver's
3-7 license to an applicant under 18 years of age who holds an
3-8 intermediate license if the applicant was alleged to have committed
3-9 a traffic offense during the six-month period preceding the date of
3-10 the application and the allegation:
3-11 (1) resulted in a final:
3-12 (A) adjudication under juvenile proceedings; or
3-13 (B) conviction; or
3-14 (2) has not been finally disposed of before the date
3-15 of the application.
3-16 (f) This section expires January 1, 2001.
3-17 SECTION 1.04. Effective January 1, 2001, Subchapter K,
3-18 Chapter 521, Transportation Code, is amended by adding Section
3-19 521.2221 to read as follows:
3-20 Sec. 521.2221. INTERMEDIATE LICENSE; ADDITIONAL RESTRICTIONS
3-21 ON MINOR. (a) The department may issue an intermediate license to
3-22 a person who:
3-23 (1) is 16 years of age or older but under 18 years of
3-24 age; and
3-25 (2) meets the requirements imposed by Sections
3-26 521.204(2), (3), and (4) on an applicant for a Class C driver's
3-27 license.
4-1 (b) A person who holds an intermediate license is eligible
4-2 for a discount in the motor vehicle insurance premium otherwise
4-3 applicable to coverage for that person as provided by Article
4-4 5.03-6, Insurance Code.
4-5 (c) A holder of an intermediate license may not operate a
4-6 motor vehicle at nighttime, as defined by Section 541.401, unless
4-7 the holder is accompanied by the holder's parent or guardian.
4-8 (d) The department may issue a Class A, B, or C driver's
4-9 license to an applicant under 18 years of age only if the applicant
4-10 has held an intermediate license or hardship license for at least
4-11 six months preceding the date of the application.
4-12 (e) The department may not issue a Class A, B, or C driver's
4-13 license to an applicant under 18 years of age if the applicant was
4-14 alleged to have committed a traffic offense during the six-month
4-15 period preceding the date of the application and the allegation:
4-16 (1) resulted in a final:
4-17 (A) adjudication under juvenile proceedings; or
4-18 (B) conviction; or
4-19 (2) has not been finally disposed of before the date
4-20 of the application.
4-21 ARTICLE 2. MOTOR VEHICLE INSURANCE PREMIUM DISCOUNT
4-22 SECTION 2.01. Subchapter A, Chapter 5, Insurance Code, is
4-23 amended by adding Article 5.03-6 to read as follows:
4-24 Art. 5.03-6. PREMIUM DISCOUNT PROGRAM FOR HOLDER OF
4-25 INTERMEDIATE DRIVER'S LICENSE
4-26 Sec. 1. DEFINITIONS. In this article:
4-27 (1) "Driving record" means an individual's history of
5-1 convictions of violations of traffic safety regulations.
5-2 (2) "Insurer" means an insurance company,
5-3 interinsurance exchange, mutual, capital stock company, fraternal
5-4 benefit society, local mutual aid association, county mutual,
5-5 reciprocal, association, Lloyd's plan, or other entity writing
5-6 motor vehicle insurance in this state. The term includes a company
5-7 affiliated with an insurer.
5-8 (3) "Intermediate license" means an intermediate
5-9 driver's license issued under Section 521.2221, Transportation
5-10 Code.
5-11 (4) "Traffic safety regulation" means a law or
5-12 ordinance of this state or a political subdivision of this state
5-13 relating to the operation of motor vehicles, other than a
5-14 regulation relating to pedestrians or to the parking of motor
5-15 vehicles.
5-16 Sec. 2. DISCOUNT REQUIRED. (a) An insurer who delivers or
5-17 issues for delivery in this state a motor vehicle insurance policy,
5-18 on receipt of written verification from the insured that the
5-19 insured or a family member covered by the policy is eligible under
5-20 Subsection (b) of this section, shall grant a discount in the
5-21 amount provided by Subsection (c) of this section in the premiums
5-22 charged for the liability, medical payments, personal injury
5-23 protection, and collision coverage only for the motor vehicle
5-24 designated to be driven by the holder of the intermediate license.
5-25 (b) To be eligible for a discount under this article, an
5-26 applicant for a discount must file with the insurer a copy of the
5-27 intermediate license held by the insured or the insured's family
6-1 member, or other information as prescribed by the commissioner,
6-2 that presents evidence satisfactory to establish that the person
6-3 covered by the discount holds an intermediate license.
6-4 (c) Except as provided by Subsection (d) of this section,
6-5 the commissioner by rule shall set the amount of the discount
6-6 applicable under this article in an amount not less than 15 percent
6-7 lower than the lowest applicable premium rate offered by that
6-8 insurer for motor vehicle insurance coverage applicable to an
6-9 average driver:
6-10 (1) whose driving record does not evidence any
6-11 violations of traffic safety regulations; and
6-12 (2) who is the same age as the holder of the
6-13 intermediate license.
6-14 (d) The commissioner by rule may modify the amount of the
6-15 discount applicable under this article if, after hearing, the
6-16 commissioner determines that a modification is necessary to
6-17 establish premium rates that are reasonable, adequate, not unfairly
6-18 discriminatory, non-confiscatory, and not excessive.
6-19 (e) The commissioner may adopt other rules necessary for the
6-20 implementation of this article.
6-21 Sec. 3. REVOCATION OF DISCOUNT. An insurer shall revoke a
6-22 discount under this article if an applicant for the discount
6-23 knowingly provides false information in or with the application.
6-24 ARTICLE 3. TRANSITION; EFFECTIVE DATE; EMERGENCY
6-25 SECTION 3.01. Except as otherwise provided by this Act, this
6-26 Act takes effect January 1, 2000.
6-27 SECTION 3.02. Article 5.03-6, Insurance Code, as added by
7-1 this Act, applies only to a motor vehicle insurance policy that is
7-2 delivered, issued for delivery, or renewed on or after March 1,
7-3 2000. A policy that is delivered, issued for delivery, or renewed
7-4 before March 1, 2000, is governed by the law as it existed
7-5 immediately before the effective date of this Act, and that law is
7-6 continued in effect for that purpose.
7-7 SECTION 3.03. The importance of this legislation and the
7-8 crowded condition of the calendars in both houses create an
7-9 emergency and an imperative public necessity that the
7-10 constitutional rule requiring bills to be read on three several
7-11 days in each house be suspended, and this rule is hereby suspended.