By:  Sibley                                            S.B. No. 929
       73R1420 DLF-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to binding arbitration of claims for personal injury or
    1-3  death resulting from negligence of a health care provider.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Title 7, Civil Practice and Remedies Code, is
    1-6  amended by adding Chapter 156 to read as follows:
    1-7             CHAPTER 156.  BINDING ARBITRATION OF MEDICAL
    1-8                          MALPRACTICE CLAIMS
    1-9        Sec. 156.001.  DEFINITIONS.  In this chapter:
   1-10              (1)  "Binding arbitration" is a forum in which each
   1-11  party and the party's counsel present the position of the party
   1-12  before one or more impartial third parties who render a specific
   1-13  award.
   1-14              (2)  "Binding arbitration contract" means a written
   1-15  agreement with a health care provider requiring binding arbitration
   1-16  of any medical malpractice claim arising from services provided to
   1-17  a patient by the provider.
   1-18              (3)  "Commissioner" means the Commissioner of Health
   1-19  and Human Services.
   1-20              (4)  "Health care provider" means any person who
   1-21  provides health care under a license, certificate, or other
   1-22  recognition issued to the provider under state law.
   1-23              (5)  "Medical malpractice claim" means a claim against
   1-24  a health care provider alleging that personal injury to or death of
    2-1  a patient resulted from one or more negligent acts or omissions in
    2-2  the diagnosis, care, or treatment of the patient.
    2-3        Sec. 156.002.  BINDING ARBITRATION CONTRACT.  (a)  A health
    2-4  care provider may offer to a patient a contract requiring binding
    2-5  arbitration of any medical malpractice claim arising from services
    2-6  provided by the provider.
    2-7        (b)  A binding arbitration contract is enforceable only if
    2-8  the contract complies with the requirements of this chapter and is
    2-9  not unconscionable or void or unenforceable as a contract of
   2-10  adhesion.
   2-11        Sec. 156.003.  FORM OF CONTRACT.  (a)  A binding arbitration
   2-12  contract must be in a form approved by the commissioner and must
   2-13  specify:
   2-14              (1)  the number of impartial third parties that would
   2-15  conduct arbitration under the contract; and
   2-16              (2)  the manner in which the third parties would be
   2-17  selected.
   2-18        (b)  A binding arbitration contract may specify the manner in
   2-19  which the arbitration would be conducted, subject to approval by
   2-20  the commissioner.
   2-21        (c)  The commissioner may not approve a binding arbitration
   2-22  contract unless the following language appears immediately before
   2-23  the signature line in at least 10-point bold type:
   2-24        "BY SIGNING THIS CONTRACT YOU ARE AGREEING TO HAVE ANY ISSUE
   2-25  OF MEDICAL MALPRACTICE DECIDED BY NEUTRAL ARBITRATION AND YOU ARE
   2-26  GIVING UP YOUR RIGHT TO A JURY OR COURT TRIAL.  A HEALTH CARE
   2-27  PROVIDER MAY NOT DENY TREATMENT TO YOU SOLELY BECAUSE YOU REFUSE TO
    3-1  SIGN THIS CONTRACT".
    3-2        Sec. 156.004.  MINOR PATIENT.  If the patient is a minor, a
    3-3  binding arbitration contract must be signed by the patient's
    3-4  parent, managing conservator, or legal guardian.
    3-5        Sec. 156.005.  ENFORCEMENT OF ARBITRATION AWARD.  An award
    3-6  made in a binding arbitration conducted in accordance with a
    3-7  binding arbitration contract is enforceable in the same manner as
    3-8  any contract obligation.
    3-9        SECTION 2.  This Act takes effect September 1, 1993, and
   3-10  applies only to a contract executed on or after January 1, 1994.  A
   3-11  contract that is executed before January 1, 1994, is governed by
   3-12  the law as it existed immediately before the effective date of this
   3-13  Act, and that law is continued in effect for that purpose.
   3-14        SECTION 3.  The importance of this legislation and the
   3-15  crowded condition of the calendars in both houses create an
   3-16  emergency   and   an   imperative   public   necessity   that   the
   3-17  constitutional rule requiring bills to be read on three several
   3-18  days in each house be suspended, and this rule is hereby suspended.