SRC-TNM, AAA S.B. 1279 75(R) BILL ANALYSIS Senate Research Center S.B. 1279 By: Lucio Economic Development 6-27-97 As Filed DIGEST Currently, liability for injuries allegedly caused by medical products is determined by the laws of each state. Punitive damages present a problem in that they are unpredictable and interfere with reasonable settlement negotiations. This bill prohibits exemplary damages from being awarded against a manufacturer or seller of a drug if the manufacturer or seller is in compliance with certain provisions. PURPOSE As proposed, S.B. 1279 prohibits exemplary damages from being awarded if there is compliance with certain provisions. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 41, Civil Practice & Remedies Code, by adding Section 41.014, as follows: Sec. 41.014. COMPLIANCE WITH GOVERNMENT STANDARDS. Sets forth instances in which exemplary damages are prohibited from being awarded against a manufacturer or seller of a drug that caused the claimant's harm. Provides that the prohibition does not apply to certain manufacturers of drugs. Defines "drug." SECTION 2. Effective date: September 1, 1997. Makes application of this Act prospective.