By Smithee                                      H.B. No. 1170

      75R2178 SAW-D                           

                                A BILL TO BE ENTITLED

 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 board may approve an endorsement form

1-13     that provides for coverage for punitive damages to be used on a

1-14     policy of medical professional liability insurance issued to a

1-15     hospital, as the term "hospital" is defined in this article, or to

1-16     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.

 3-1                          COMMITTEE AMENDMENT NO. 1

 3-2           Amend H.B. 1170 on Page 1, at line 12 by deleting the word

 3-3     "board," and inserting the word "commissioner."

 3-4                                                        Lewis of Tarrant