HBA-ATS C.S.H.B. 3757 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3757 By: Giddings Insurance 4/16/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Driving under the influence or driving while intoxicated continues to be a serious problem in Texas. According to some reports, nearly 1,750 drivers died as a result of an alcohol-related traffic accident in Texas during 1997. Those fatalities accounted for almost 50 percent of all traffic fatalities in Texas. C.S.H.B. 3757 requires the Texas Education Agency (agency) to develop a separate school certification and educational curriculum for drug and alcohol awareness programs (programs). The agency and the Texas Commission on Alcohol and Drug Abuse must enter into a memorandum of understanding for the interagency development of the required educational curriculum. Under this bill, the commissioner of insurance is required, by rule, to require a five percent premium discount (discount) to a motor vehicle insurance policyholder for completion of an approved drug and alcohol driving awareness program. However, the discount does not apply if any policyholder has, within seven years preceding enrollment in the program, been convicted of an offense related to the operation of a motor vehicle under Chapter 49 (Intoxication and Alcoholic Beverage Offenses), Penal Code, an offense under Sections 106.02 (Purchase of Alcohol by a Minor), 106.025 (Attempt to Purchase Alcohol by a Minor), 106.04 (Consumption of Alcohol by a Minor), 106.041 (Driving Under the Influence of Alcohol by Minor), or 106.05 (Possession of Alcohol by a Minor), Alcoholic Beverage Code, that has not been expunged, or an offense under a statute of another state that is similar to the above statutes. Nevertheless, a person who completes a program but who is ineligible for the discount becomes eligible on the seventh anniversary of the date of the conviction, without regard to when the person completed the program. 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 3 (Article 5.03-4, Insurance Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 3, Article 4413(29c), V.T.C.S. (Texas Driver and Traffic Safety Education Act), by adding Subdivision (23), to define "drug and alcohol driving awareness program." SECTION 2. Amends Article 4413(29c), V.T.C.S. (Texas Driver and Traffic Safety Education Act), by adding Section 4A, as follows: Sec. 4A. DRUG AND ALCOHOL DRIVING AWARENESS PROGRAMS. (a) Requires the Texas Education Agency (agency) to develop a separate school certification and educational curriculum for drug and alcohol awareness programs (programs). Provides that the programs must be offered in the same manner as other safety driving safety courses, except as provided by rules adopted by the agency. (b) Requires the agency and the Texas Commission on Alcohol and Drug Abuse to enter into a memorandum of understanding for the interagency development of the required educational curriculum, in accordance with Section 461.013(b) (Education and Research Programs Concerning Controlled Substances), Health and Safety Code. (c) Authorizes the program standards adopted by the agency to require the course provider to evaluate aspects of the programs. SECTION 3. Amends Subchapter A, Chapter 5, Insurance Code, by adding Article 5.03-4, as follows: Art. 5.03-4. DISCOUNTS FOR DRUG AND ALCOHOL DRIVING AWARENESS PROGRAMS. (a) Requires the commissioner of insurance, by rule, to require a five percent premium discount (discount) to a motor vehicle insurance policyholder for completion of an approved drug and alcohol driving awareness program. (b) Provides that the discount does not apply if any policyholder has, within seven years preceding enrollment in the program, been convicted of an offense related to the operation of a motor vehicle under Chapter 49 (Intoxication and Alcoholic Beverage Offenses), Penal Code, an offense under Sections 106.02 (Purchase of Alcohol by a Minor), 106.025 (Attempt to Purchase Alcohol by a Minor), 106.04 (Consumption of Alcohol by a Minor), 106.041 (Driving Under the Influence of Alcohol by Minor), or 106.05 (Possession of Alcohol by a Minor), Alcoholic Beverage Code, that has not been expunged, or an offense under a statute of another state that is similar to the above statutes. (c) Provides that a person who completes a program but who is ineligible for the discount becomes eligible on the seventh anniversary of the date of the conviction, without regard to when the person completed the program. (d) Provides that the standards for the programs are the minimum standards for certified programs designed to educate persons on the dangers of alcohol, drugs, and driving. Provides that a person is not eligible for, and an insurer is prohibited from offering, a discount for a program that does not use the developed uniform curriculum. SECTION 4. Effective date: September 1, 1999. SECTION 5. Makes application of this Act prospective for a personal motor vehicle liability insurance policy delivered, issued for delivery, or renewed on or after January 1, 2000. SECTION 6. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3757 modifies the original bill by adding a new SECTION 1 to include the definition of "drug and alcohol driving awareness program" in proposed Section 3(23), Article 4413(29c), V.T.C.S. C.S.H.B. 3757 modifies the original bill by redesignating SECTION 1 of the original to SECTION 2. The original bill contained no SECTION 2. In SECTION 2, the substitute provides a new title, "Drug and Alcohol Driving Awareness Programs," for Section 4A. In SECTION 2, the substitute amends Article 4413(29c), (Texas Driver and Traffic Safety Education Act) V.T.C.S., by adding Section 4A, which was originally added in SECTION 1 of the original. The substitute deletes the definitions of "approved drug and alcohol awareness program," "commission," "department," "discount," "driver training," "drug and alcohol driving awareness program," "reporting period," "school," and "self-assessment" found in proposed Section 4A(a) of the original. In the new proposed Section 4A(a), the substitute requires the Texas Education Agency (agency) to develop a separate school certification and educational curriculum for drug and alcohol awareness programs (programs). Proposed Section 4A(b) of the original required the Texas Education Agency to develop school certification and educational curriculum for driver training and driving safety courses. Proposed Section 4A(b) of the substitute requires the agency and the Texas Commission on Alcohol and Drug Abuse to enter into a memorandum of understanding for the interagency development of the required educational curriculum, in accordance with Section 461.013(b), Health and Safety Code. Proposed Section 4A(c) of the substitute authorizes the program standards adopted by the agency to require the course provider to evaluate aspects of the programs. The substitute deletes proposed Sections 4A(c), (d), (e), and (f) of the original. Proposed Section 4A(c) requires the Texas Commission on Alcohol and Drug Abuse to enter into a memorandum of understanding with the agency for the development of curricula, in accordance with Section 461.013(b), Health and Safety Code. Proposed Section 4A(d) requires the Texas Department of Insurance to require motor vehicle liability insurers to offer a five percent discount on personal auto coverage upon completion of the approved drug and alcohol driving awareness program. Proposed Section 4A(e) sets forth that drivers convicted of driving while intoxicated or of being a minor found guilty of the possession, consumption, or purchase of alcoholic beverages, within the last seven years from the date of anticipated enrollment in the program, are not eligible for the discount, and sets forth that drivers who are convicted for these types of offenses after taking the course will not be eligible for the discount for seven years after being convicted. Proposed Section 4A(f) provides that the agency's intent is to promulgate minimum standards for the uniform operation of certified programs designed to educate persons on the dangers of alcohol/drugs and driving to receive a discount on personal auto coverage, and provides that a certified program must utilize a uniform curriculum developed by the commission. C.S.H.B. 3757 modifies the original bill in a new SECTION 3 of the substitute to amend Subchapter A, Chapter 5, Insurance Code, by adding Article 5.03-4. In proposed Article 5.03-4(a), the substitute requires the commissioner of insurance, by rule, to require a five percent premium discount (discount) to a motor vehicle insurance policyholder for completion of an approved drug and alcohol driving awareness program. In proposed Article 5.03-4(a), the substitute provides that the discount does not apply if any policyholder has, within seven years preceding enrollment in the program, been convicted of an offense under Chapter 49, Penal Code, an offense under Sections 106.02, 106.025, 106.04, 106.041, or 106.05, Alcoholic Beverage Code, that has not been expunged, or an offense under a statute of another state that is similar to the above statutes. In proposed Article 5.03-4(c), the substitute provides that a person who completes a program but who is ineligible for the discount becomes eligible on the seventh anniversary of the date of the conviction, without regard to when the person completed the program. In proposed Article 5.03-4(d), the substitute provides that the standards for the programs are the minimum standards for certified programs designed to educate persons on the dangers of alcohol, drugs, and driving. The substitute also provides that a person is not eligible for, and an insurer is prohibited from offering, a discount for a program that does not use the developed uniform curriculum. C.S.H.B. 3757 modifies the original bill by adding SECTION 4 (effective date). C.S.H.B. 3757 modifies the original bill by adding SECTION 5 to make application of the Act prospective for a personal motor vehicle liability insurance policy delivered, issued for delivery, or renewed on or after January 1, 2000. C.S.H.B. 3757 modifies the original bill by redesignating SECTION 3 of the original to SECTION 6 (emergency clause).