By Harris S.B. No. 347 76R2983 DLF-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to liability for injury or property damage arising from a 1-3 motor vehicle accident and related effects on motor vehicle 1-4 insurance. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Title 4, Civil Practice and Remedies Code, is 1-7 amended by adding Chapter 92 to read as follows: 1-8 CHAPTER 92. LIABILITY FOR CERTAIN MOTOR VEHICLE 1-9 ACCIDENTS 1-10 Sec. 92.001. DEFINITION. In this chapter, "exemplary 1-11 damages" has the meaning assigned by Section 41.001. 1-12 Sec. 92.002. LIABILITY FOR INJURY TO CERTAIN OPERATORS. 1-13 Except as provided by Section 92.003, a person may not obtain 1-14 damages in a civil action for bodily injury, death, or damage to or 1-15 destruction of property arising out of a motor vehicle accident if, 1-16 at the time of the accident, the person was operating the motor 1-17 vehicle in violation of Section 601.051, Transportation Code. 1-18 Sec. 92.003. EXCEPTION: DAMAGES INCURRED IN EXCESS OF MOTOR 1-19 VEHICLE SAFETY RESPONSIBILITY ACT. Section 92.002 does not 1-20 prohibit the recovery of damages for bodily injury, death, or 1-21 damage to or destruction of property arising out of a motor vehicle 1-22 accident to the extent the damages exceed the minimum amounts of 1-23 motor vehicle liability insurance required to establish financial 1-24 responsibility under Sections 601.072(a)(1) and (3), Transportation 2-1 Code. 2-2 Sec. 92.004. EXCEPTION: CERTAIN CRIMINAL CONDUCT. (a) 2-3 Section 92.002 does not apply to a claim brought against a person 2-4 who, in connection with the accident, committed an act that 2-5 constitutes: 2-6 (1) an offense punishable as a felony; or 2-7 (2) an offense under Chapter 49, Penal Code. 2-8 (b) Subsection (a) applies without regard to whether the 2-9 person is criminally convicted of the offense. 2-10 Sec. 92.005. DERIVATIVE CLAIMS. (a) Except as provided by 2-11 Subsection (b), Section 92.002 and the exceptions established by 2-12 Sections 92.003 and 92.004 apply to a claim for damages made by a 2-13 person whose right to recovery derives from an injury to another 2-14 person whose right to recovery of damages would be barred under 2-15 Section 92.002, including a claim for wrongful death or for loss of 2-16 consortium or companionship. 2-17 (b) Section 92.002 does not prohibit the recovery of 2-18 exemplary damages for a wilful act or omission or gross neglect in 2-19 a wrongful death action brought by or on behalf of a surviving 2-20 spouse or heirs of the decedent's body under a statute enacted 2-21 pursuant to Section 26, Article XVI, Texas Constitution. 2-22 Sec. 92.006. REPRESENTATIVE ACTIONS. Section 92.002 does 2-23 not prohibit a person described by that section from acting in a 2-24 representative capacity to bring suit on behalf of another person 2-25 injured in the accident, as next friend or otherwise. 2-26 SECTION 2. Subchapter A, Chapter 5, Insurance Code, is 2-27 amended by adding Article 5.06-1A to read as follows: 3-1 Art. 5.06-1A. RATE ROLLBACK BASED ON CERTAIN LIMITED 3-2 LIABILITY 3-3 Sec. 1. DEFINITION. In this article, "motor vehicle 3-4 insurance" has the meaning assigned by Article 5.01 of this code. 3-5 Sec. 2. APPLICATION; RATE ROLLBACK. (a) This article 3-6 applies to an insurer, including a county mutual insurer or an 3-7 insurer made subject to this subchapter by Article 5.01-2 of this 3-8 code, who: 3-9 (1) delivers, issues for delivery, or renews a policy 3-10 of motor vehicle insurance in this state; and 3-11 (2) accrues savings that are directly attributable to 3-12 the operation of Chapter 92, Civil Practice and Remedies Code. 3-13 (b) An insurer subject to this article shall pass the 3-14 savings accrued by the insurer to its motor vehicle insurance 3-15 policyholders through a uniform reduction in the premium rate 3-16 charged to each policyholder as prescribed by the commissioner. To 3-17 implement this requirement, the commissioner may require 3-18 information to be provided by the insurer to the department through 3-19 rate filings, informational hearings, and any other means 3-20 consistent with this code. 3-21 (c) On or before September 1 of each year, the commissioner 3-22 shall hold a rulemaking hearing under Chapter 2001, Government 3-23 Code, to determine the percentage of rate reductions applicable for 3-24 the subsequent calendar year for motor vehicle insurance policies 3-25 issued by an insurer subject to this article. The commissioner by 3-26 rule shall set the applicable percentage not later than October 1 3-27 of each year. The rate reduction adopted under this section 4-1 applies to each motor vehicle insurance policy delivered, issued 4-2 for delivery, or renewed by the insurer on or after January 1 of 4-3 the subsequent calendar year. 4-4 (d) A rate reduction under this section applicable to an 4-5 insurer subject to this article is in addition to any other rate 4-6 reduction otherwise applicable to the insurer under this code. 4-7 Sec. 3. REPORT TO LEGISLATURE. The commissioner shall 4-8 assemble information, conduct hearings, and take other appropriate 4-9 measures to assess and evaluate changes in the insurance market 4-10 resulting from the implementation of this article and shall report 4-11 findings and recommendations to the legislature not later than 4-12 February 1 of each odd-numbered year. 4-13 SECTION 3. Chapter 92, Civil Practice and Remedies Code, as 4-14 added by this Act, applies only to a cause of action that accrues 4-15 on or after the effective date of this Act. An action that accrued 4-16 before the effective date of this Act is governed by the law 4-17 applicable to the action immediately before the effective date of 4-18 this Act, and that law is continued in effect for that purpose. 4-19 SECTION 4. (a) Notwithstanding Section 2(c), Article 4-20 5.06-1A, Insurance Code, as added by this Act, not later than the 4-21 30th day after the effective date of this Act the commissioner of 4-22 insurance shall hold a rulemaking hearing under Chapter 2001, 4-23 Government Code, to determine the initial percentage of rate 4-24 reductions applicable under Article 5.06-1A, Insurance Code, as 4-25 added by this Act. The commissioner by rule shall set the 4-26 applicable percentage not later than the 15th day after the date of 4-27 the hearing. 5-1 (b) Notwithstanding Subsection (a) of this section, if, on 5-2 the 60th day after the effective date of this Act, the commissioner 5-3 of insurance has not issued an order establishing a rate reduction 5-4 under this section, a six percent rate reduction applies to the 5-5 base rate in effect on the effective date of this Act. 5-6 (c) The rate reduction adopted under Subsection (a) of this 5-7 section or imposed under Subsection (b) of this section applies to 5-8 each motor vehicle insurance policy delivered, issued for delivery, 5-9 or renewed on or after the 60th day after the effective date of 5-10 this Act and continues in force until a subsequent applicable 5-11 percentage is established under Article 5.06-1A, Insurance Code, as 5-12 added by this Act. 5-13 SECTION 5. The importance of this legislation and the 5-14 crowded condition of the calendars in both houses create an 5-15 emergency and an imperative public necessity that the 5-16 constitutional rule requiring bills to be read on three several 5-17 days in each house be suspended, and this rule is hereby suspended, 5-18 and that this Act take effect and be in force from and after its 5-19 passage, and it is so enacted.