1-1                                   AN ACT

 1-2     relating to certain nursing homes for purposes of professional

 1-3     liability insurance coverage.

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

 1-5           SECTION 1.   Section 8, Article 5.15-1, Insurance Code, is

 1-6     amended to read as follows:

 1-7           Sec. 8.  PUNITIVE DAMAGES UNDER MEDICAL PROFESSIONAL

 1-8     LIABILITY INSURANCE.  No policy of medical professional liability

 1-9     insurance issued to or renewed for a health care provider or

1-10     physician in this state may include coverage for punitive damages

1-11     that may be assessed against the health care provider or physician;

1-12     provided, however, that the commissioner [board] may approve an

1-13     endorsement form that provides for coverage for punitive damages to

1-14     be used on a policy of medical professional liability insurance

1-15     issued to a hospital, as the term "hospital" is defined in this

1-16     article, or to a not-for-profit nursing home.

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

1-18     applies only to an insurance policy that is delivered, issued for

1-19     delivery, or renewed on or after January 1, 1998.  A policy that is

1-20     delivered, issued for delivery, or renewed before January 1, 1998,

1-21     is governed by the law as it existed immediately before the

1-22     effective date of this Act, and that law is continued in effect for

1-23     that purpose.

1-24           SECTION 3.   The importance of this legislation and the

 2-1     crowded condition of the calendars in both houses create an

 2-2     emergency and an imperative public necessity that the

 2-3     constitutional rule requiring bills to be read on three several

 2-4     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1170 was passed by the House on April

         16, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 1170 on May 21, 1997, by a non-record

         vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1170 was passed by the Senate, with

         amendments, on May 19, 1997, by the following vote:  Yeas 31, Nays

         0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor