By:  Smith, Ashley                                    H.B. No. 1162
       73R923 DLF-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to damages in personal injury actions.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subtitle B, Title 2, Civil Practice and Remedies
    1-5  Code, is amended by adding Chapters 24 and 25 to read as follows:
    1-6                CHAPTER 24.  COLLATERAL SOURCE BENEFITS
    1-7        Sec. 24.001.  DEFINITIONS.  In this chapter:
    1-8              (1)  "Claimant" means a party, including a plaintiff,
    1-9  counterclaimant, cross-claimant, or third-party claimant, seeking
   1-10  recovery of damages.  If the action is brought through or on behalf
   1-11  of an estate, the term includes the beneficiaries of the estate.
   1-12  If the action is brought on behalf of a minor, the term includes
   1-13  the minor's parent or guardian.
   1-14              (2)  "Collateral source benefit" means a benefit paid
   1-15  or payable to or on behalf of a claimant under:
   1-16                    (A)  the Social Security Act (42 U.S.C. 301 et
   1-17  seq.);
   1-18                    (B)  a state or federal income replacement,
   1-19  disability, workers' compensation, or other law that provides
   1-20  partial or full income replacement;
   1-21                    (C)  any insurance policy, other than a life
   1-22  insurance policy, including:
   1-23                          (i)  an accident, health, or sickness
   1-24  insurance policy;
    2-1                          (ii)  a disability insurance policy; and
    2-2                          (iii)  a property or casualty insurance
    2-3  policy, including a motor vehicle or homeowners' insurance policy;
    2-4                    (D)  an agreement under which a person, including
    2-5  a health maintenance organization operating under a certificate of
    2-6  authority issued under the Texas Health Maintenance Organization
    2-7  Act (Chapter 20A, Vernon's Texas Insurance Code), is obligated to
    2-8  provide or pay for medical, hospital, dental, or other health care
    2-9  services or similar benefits; or
   2-10                    (E)  a contractual or voluntary wage continuation
   2-11  plan, provided by an employer or other person, or any other system
   2-12  intended to provide wages during a period of disability.
   2-13        Sec. 24.002.  APPLICATION OF CHAPTER.  (a)  This chapter
   2-14  applies only to a claim for damages arising from personal injury,
   2-15  including a claim for loss of wages, medical or other health care
   2-16  costs, rehabilitation costs, and services.
   2-17        (b)  This chapter applies regardless of the theory of
   2-18  liability under which the action is brought.
   2-19        Sec. 24.003.  ADMISSIBILITY OF EVIDENCE OF COLLATERAL SOURCE
   2-20  BENEFITS.  Evidence of a collateral source benefit is admissible in
   2-21  a personal injury action if the benefit:
   2-22              (1)  has been paid or is substantially certain to be
   2-23  paid to the claimant; and
   2-24              (2)  compensates the claimant for at least some of the
   2-25  damages sought in the action.
   2-26        Sec. 24.004.  CONSIDERATION OF COLLATERAL SOURCE BENEFITS.
   2-27  (a)  The trier of fact shall consider collateral source benefits
    3-1  admissible under Section 24.003 in determining the amount of a
    3-2  judgment.
    3-3        (b)  The court shall consider collateral source benefits
    3-4  admissible under Section 24.003 in reviewing a judgment for
    3-5  excessiveness.
    3-6        Sec. 24.005.  PREMIUMS PAID FOR COLLATERAL SOURCE BENEFITS.
    3-7  In determining the amount of a judgment, the trier of fact may
    3-8  consider premiums personally paid by a claimant to obtain coverage
    3-9  that provides a collateral source benefit that has been paid or
   3-10  that is payable.
   3-11        Sec. 24.006.  EVIDENCE OF TAX IMPLICATION OF DAMAGE AWARDS.
   3-12  The trier of fact shall be informed of the tax implications of an
   3-13  award of damages for a claim for which collateral source benefits
   3-14  were received.
   3-15                     CHAPTER 25.  AWARD OF DAMAGES
   3-16        Sec. 25.001.  DEFINITION.  In this chapter, "claimant" means
   3-17  a party, including a plaintiff, counterclaimant, cross-claimant, or
   3-18  third-party claimant, seeking recovery of damages.  If the action
   3-19  is brought through or on behalf of an estate, the term includes the
   3-20  beneficiaries of the estate.  If the action is brought on behalf of
   3-21  a minor, the term includes the minor's parent or guardian.
   3-22        Sec. 25.002.  SPECIAL DAMAGES FINDINGS REQUIRED.  (a)  If a
   3-23  trier of fact awards damages for personal injury, the trier of fact
   3-24  shall make separate findings for each claimant specifying:
   3-25              (1)  the amount of damages that have accrued at the
   3-26  time of the judgment for:
   3-27                    (A)  medical and other health care costs;
    4-1                    (B)  economic loss other than the costs of
    4-2  medical or other health care; and
    4-3                    (C)  noneconomic loss; and
    4-4              (2)  the amount of damages that will accrue in the
    4-5  future for:
    4-6                    (A)  medical and other health care costs;
    4-7                    (B)  economic loss other than the costs of
    4-8  medical or other health care; and
    4-9                    (C)  noneconomic loss.
   4-10        (b)  This section applies regardless of the theory of
   4-11  liability under which the claim for damages for personal injury is
   4-12  brought.
   4-13        Sec. 25.003.  COMPUTATION OF FUTURE DAMAGES.  (a)  The trier
   4-14  of fact, in computing the cost of medical or other health care that
   4-15  will accrue in the future and future noneconomic loss, may consider
   4-16  only the costs and losses that will accrue during the period of
   4-17  time the claimant will sustain those costs and losses.
   4-18        (b)  The trier of fact, in computing the economic loss other
   4-19  than the cost of medical or other health care that will accrue in
   4-20  the future, shall consider the losses that would have accrued
   4-21  during the period of time the claimant would have lived if the
   4-22  injury on which the claim is made had not been sustained.
   4-23        SECTION 2.  This Act takes effect September 1, 1993, and
   4-24  applies only to a cause of action that commences on or after that
   4-25  date.  An action that commences before that date is governed by the
   4-26  law in effect at the time the action commences, and that law is
   4-27  continued in effect for that purpose.
    5-1        SECTION 3.  The importance of this legislation and the
    5-2  crowded condition of the calendars in both houses create an
    5-3  emergency   and   an   imperative   public   necessity   that   the
    5-4  constitutional rule requiring bills to be read on three several
    5-5  days in each house be suspended, and this rule is hereby suspended.