HBA-MPM H.B. 90 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 90 By: Driver Public Safety 4/14/99 Introduced BACKGROUND AND PURPOSE Data from the Insurance Institute for Highway Safety shows that 16-year-olds are three times more likely, and 17- to 19-year-olds twice as likely, to die in traffic accidents as all drivers combined. A disproportionate number of fatal accidents involving teenage drivers occur at night. H.B. 90 creates an intermediate driver's license for new drivers who are 16 or 17 years old. Such a license does not allow the driver to drive at night unless accompanied by a parent or guardian. The bill also provides a motor vehicle insurance discount for the holders of an intermediate license. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Commissioner of Insurance in SECTION 2.01 (Article 5.03-6, Section 2, Insurance Code) of this bill. SECTION BY SECTION ANALYSIS ARTICLE 1. INTERMEDIATE DRIVER'S LICENSE SECTION 1.01. Amends Section 521.001(a), Transportation Code, to amend Subdivision (3) to include "intermediate license" in a list of terms under the definition of "driver's license." Amends Subdivision (9) to define "traffic offense" as a violation of statute or ordinance regulating a driver's conduct or condition when they operate a motor vehicle. SECTION 1.02. Amends Section 521.123, Transportation Code, as follows: Sec. 521.123. DESIGNATOR ON LICENSE ISSUED TO PERSON UNDER 21 YEARS OF AGE. Requires the Texas Department of Public Safety (department) to include a renewed or duplicate driver's license among those licenses issued by the department to a person under 18 years of age that must be clearly marked and designated as a provisional license. Requires the department to indicate "INSTRUCTION PERMIT" on the face of each instruction permit and to indicate "INTERMEDIATE LICENSE" on the face of each intermediate license. SECTION 1.03. Amends Subchapter K, Chapter 521, Transportation Code, to add Section 521.2221, as follows: Sec. 521.2221. INTERMEDIATE LICENSE. (a) Authorizes the department to issue an intermediate license to a person 16 years of age or older but under 18 years of age and who meets requirements imposed by Sections 521.204(2), (3), and (4) (Restrictions on Minor) on an applicant for a Class C driver's license, and who requests issuance of an intermediate license. (b) Provides that a person eligible for an intermediate license is not required to obtain one, but may obtain any license for which the person is eligible. Sets forth that the person holding an intermediate license is eligible for a discounted motor vehicle insurance premium, which otherwise applies to the person's coverage as provided under Article 5.03-6, Insurance Code. (c) Prohibits the holder of an intermediate license from driving at nighttime, as defined by Section 541.401 (Miscellaneous Terms), unless accompanied by the holder's parent or guardian. (d) Authorizes the department to issue a Class A, B, or C driver's license to an applicant who is under 18 and holds an intermediate license provided the applicant has held the intermediate license for at least six months preceding the application date. (e) Prohibits the department from issuing a Class A, B, or C driver's license to an applicant under 18 who holds an intermediate license if the applicant is alleged to have committed a traffic offense during the six-month period preceding the application date; and if the allegation resulted in a final conviction or adjudication under juvenile proceedings, or if the allegation has not been resolved before the application date. (f) Sets forth that this section expires January 1, 2001. SECTION 1.04. Amends Subchapter K, Chapter 521, Transportation Code, to add Section 521.2221, effective January 1, 2001, as follows: Sec. 521.2221. INTERMEDIATE LICENSE; ADDITIONAL RESTRICTIONS ON MINOR. (a) Authorizes the department to issue an intermediate license to a person who is 16 years of age or older, but under 18 years, and who meets the requirements imposed by Sections 521.204(2), (3), and (4) (Restrictions on Minor) on an applicant for a Class C driver's license. (b) Sets forth that a person holding an intermediate driver's license is eligible for a discounted motor vehicle insurance premium otherwise applicable to coverage for that person as provided by Article 5.03-6, Insurance Code. (c) Prohibits the holder of an intermediate license from driving at night, as defined in Section 504.401 (Miscellaneous Terms), unless accompanied by the holder's parent or guardian. (d) Authorizes the department to issue a Class A, B, or C driver's license to an applicant under 18 only if the applicant has held an intermediate or hardship license for at least six months preceding the application date. (e) Prohibits the department from issuing a Class A, B, or C driver's license to an applicant under 18 if that applicant was alleged to have committed a traffic offense during the six-month period preceding the application date, and if the allegation resulted in a final conviction or adjudication under juvenile proceedings, or if the allegation has not been resolved before the application date. ARTICLE 2. MOTOR VEHICLE INSURANCE PREMIUM DISCOUNT SECTION 2. Amends Subchapter A, Chapter 5, Insurance Code, to add Article 5.03-6, as follows: ARTICLE 5.03-6. PREMIUM DISCOUNT PROGRAM FOR HOLDER OF INTERMEDIATE DRIVER'S LICENSE. Sec. 1. DEFINITIONS. Defines "driving record," "insurer," "intermediate license," and "traffic safety regulation." Sec. 2. DISCOUNT REQUIRED. (a) Requires an insurer who provides a motor insurance policy to grant a discount in the amount provided by Subsection (c) of this section in premiums charged for liability, medical payments, personal injury protection, and collision coverage, only for the motor vehicle designated to be driven by the holder of an intermediate license. Requires written verification to be provided to the insurer that the insured or a family member covered by the policy is eligible under Subsection (b) of this section. (b) Provides that an applicant for a discount must file with the insurer a copy of the intermediate license held by the insured or insured's family member, or other information prescribed by the Commissioner of Insurance (commissioner) that presents sufficient evidence that the person covered by the discount holds an intermediate license, in order to be eligible for a discount under this article. (c) Requires the commissioner, by rule, except as provided by Subsection (d) of this section, to set the amount of the discount in an amount no less than 15 percent lower than the lowest applicable premium offered by that insurer for insurance coverage to an average driver whose driving record does not reflect any traffic violations and who is the same age as the intermediate license holder. (d) Authorizes the commissioner, by rule, to modify the amount of the discount if, after a hearing, the commissioner decides that a modification is necessary to establish reasonable, adequate premium rates that are not unfairly discriminatory, non-confiscatory, or excessive. (e) Authorizes the commissioner to adopt rules necessary to implement this article. ARTICLE 3. TRANSITION; EFFECTIVE DATE; EMERGENCY. SECTION 3.01. Effective date: January 1, 2000, except that Section 1.04 takes effect January 1, 2001. SECTION 3.02. Makes application of this Act prospective. SECTION 3.03. Emergency clause.