By: Jackson  S.B. No. 1159
         (In the Senate - Filed March 5, 2007; March 14, 2007, read
  first time and referred to Committee on Business and Commerce;
  May 15, 2007, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 6, Nays 0; May 15, 2007,
  sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1159 By:  Harris
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to prohibition of certain insurer restrictions regarding
  repair of a motor vehicle covered under an insurance policy.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (a), Section 1952.301, Insurance
  Code, is amended to read as follows:
         (a)  Except as provided by rules adopted by the commissioner,
  under an automobile insurance policy that is delivered, issued for
  delivery, or renewed in this state, an insurer may not directly or
  indirectly [limit the insurer's coverage under a policy covering
  damage to a motor vehicle by]:
               (1)  specify [specifying] the brand, type, kind, age,
  vendor, supplier, or condition of parts or products that may be used
  to repair the vehicle; or
               (2)  limit [limiting] the beneficiary of the policy to
  [from] selecting a repair person or facility to repair damage to the
  vehicle from a list provided to the beneficiary by the insurer.
         SECTION 2.  Subsection (a), Section 1952.303, Insurance
  Code, is amended to read as follows:
         (a)  A contract between an insurer and a repair person or
  repair facility may not include[, including] an agreement under
  which the repair person or facility agrees to extend discounts for
  parts or labor to the insurer in exchange for referrals by the
  insurer[, may not result in a reduction of coverage under an
  insured's automobile insurance policy].
         SECTION 3.  This Act applies only to an automobile insurance
  policy delivered, issued for delivery, or renewed on or after
  January 1, 2008. A policy delivered, issued for delivery, or
  renewed before January 1, 2008, is governed by the law as it existed
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
         SECTION 4.  The change in law made by this Act to Subsection
  (a), Section 1952.303, Insurance Code, applies only to a contract
  entered into on or after the effective date of this Act.  A contract
  entered into before the effective date of this Act is governed by
  the law in effect immediately before that date, and that law is
  continued in effect for that purpose.
         SECTION 5.  This Act takes effect September 1, 2007.
 
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