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).