By Culberson                                     H.B. No. 554

      75R1737 MLS-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the distribution of exemplary damages to the permanent

 1-3     school fund.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 41, Civil Practice and Remedies Code, is

 1-6     amended by adding Section 41.014 to read as follows:

 1-7           Sec. 41.014.  DISTRIBUTION OF AWARD.  (a)  Notwithstanding

 1-8     any contractual agreement between a claimant and the claimant's

 1-9     attorney, a court shall order an award of exemplary damages paid as

1-10     follows:

1-11                 (1)  15 percent to the claimant;

1-12                 (2)  10 percent to the claimant's attorney; and

1-13                 (3)  75 percent to the permanent school fund.

1-14           (b)  The provisions of this section may not be made known to

1-15     the jury through any means, including voir dire, introduction into

1-16     evidence, or instruction.

1-17           SECTION 2.  This Act takes effect September 1, 1997, and

1-18     applies only to a cause of action that accrues on or after that

1-19     date.  An action that accrues before the effective date of this Act

1-20     is governed by the law in effect at the time the action accrued,

1-21     and that law is continued in effect for that purpose.

1-22           SECTION 3.  The importance of this legislation and the

1-23     crowded condition of the calendars in both houses create an

1-24     emergency and an imperative public necessity that the

 2-1     constitutional rule requiring bills to be read on three several

 2-2     days in each house be suspended, and this rule is hereby suspended.