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.