1-1     By:  Smithee (Senate Sponsor - Shapiro)               H.B. No. 1170

 1-2           (In the Senate - Received from the House April 17, 1997;

 1-3     April 18, 1997, read first time and referred to Committee on

 1-4     Economic Development; May 8, 1997, reported adversely, with

 1-5     favorable Committee Substitute by the following vote:  Yeas 6, Nays

 1-6     0; May 8, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 1170                 By:  Haywood

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to certain nursing homes for purposes of professional

1-11     liability insurance coverage.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Section 8, Article 5.15-1, Insurance Code, is

1-14     amended to read as follows:

1-15           Sec. 8.  Punitive damages under medical professional

1-16     liability insurance.  No policy of medical professional liability

1-17     insurance issued to or renewed for a health care provider or

1-18     physician in this state may include coverage for punitive damages

1-19     that may be assessed against the health care provider or physician;

1-20     provided, however, that the commissioner [board] may approve an

1-21     endorsement form that provides for coverage for punitive damages to

1-22     be used on a policy of medical professional liability insurance

1-23     issued to a hospital, as the term "hospital" is defined in this

1-24     article, or to a not-for-profit nursing home.

1-25           SECTION 2.  This Act takes effect September 1, 1997, and

1-26     applies only to an insurance policy that is delivered, issued for

1-27     delivery, or renewed on or after January 1, 1998.  A policy that is

1-28     delivered, issued for delivery, or renewed before January 1, 1998,

1-29     is governed by the law as it existed immediately before the

1-30     effective date of this Act, and that law is continued in effect for

1-31     that purpose.

1-32           SECTION 3.  The importance of this legislation and the

1-33     crowded condition of the calendars in both houses create an

1-34     emergency and an imperative public necessity that the

1-35     constitutional rule requiring bills to be read on three several

1-36     days in each house be suspended, and this rule is hereby suspended.

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