BILL ANALYSIS Insurance Committee By: Smithee 03-22-95 Committee Report (Substituted) BACKGROUND Currently not-for-profit nursing homes are prevented from purchasing punitive damage insurance under medical professional liability insurance from an admitted or standard carrier. PURPOSE As proposed, House Bill 771 would include a not-for-profit nursing home under the definition of a hospital as described in Section 8, Article 5.15-1, Insurance Code. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 8, Article 5.15-1, Insurance Code to include not-for-profit nursing homes under the definition of a hospital as described in this article. SECTION 2. Effective Date and provides transition language for policies that are delivered, issued, or renewed on or after January 1, 1996. SECTION 3. Emergency Clause COMPARISON OF ORIGINAL TO SUBSTITUTE H.B. 771 as filed amended Section 2(2), Article 5.15-1, Insurance Code by deleting not-for-profit nursing home for the definition of health care providers. The substitute to H.B. 771 amends Section 8, Article 5.15-1, Insurance Code to include a not-for-profit nursing home under the definition of a hospital as described in this article. SUMMARY OF COMMITTEE ACTION In accordance with House Rules, H.B. 771 was heard in a public hearing on March 1995. The Chair laid out H.B. 771 and explained the bill. The Chair recognized the following persons to testify in support of H.B. 771: Chris Spence, Wesleyan Homes, Inc.; David Latimar, Texas Association of Homes and Services for the Aging. The Chair recognized the following person to testify neutrally on H.B. 771: David Durden, Texas Department of Insurance. The Chair left H.B. 771 pending before the Committee. On March 22, 1995, the Chair laid out H.B. 771 as business pending before the Committee. The Chair recognized Representative Averitt who offered a substitute to H.B. 771 and moved the Committee adopt the substitute to H.B. 771. The Chair heard no objections and the substitute was adopted. The Chair recognized Representative Dutton who moved the Committee report H.B. 771 as substituted to the full House with the recommendation that it do pass, be printed, and sent to the Committee on Local and Consent Calendars. Representative G. Lewis seconded the motion and the motion prevailed by the following vote: AYES (7); NAYES (0); ABSENT (2); PNV (0).