By:  Harris                                   S.B. No. 883

         97S0567/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to structured settlement offers in certain personal injury

 1-2     suits.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Chapter 30, Civil Practice and Remedies Code, is

 1-5     amended by adding Section 30.011 to read as follows:

 1-6           Sec. 30.011.  STRUCTURED SETTLEMENT OFFERS IN CERTAIN

 1-7     PERSONAL INJURY SUITS.  (a)  This section applies only to a suit

 1-8     for damages arising from personal injury to minors, incapacitated

 1-9     persons, or in which the personal injury has resulted in the

1-10     substantial disablement of the person injured.

1-11           (b)  On or after the commencement of the suit, if the

1-12     defendant makes an offer of settlement, it must be made in writing

1-13     and the offer presented to:

1-14                 (1)  the attorney for the plaintiff; and

1-15                 (2)  if the suit is brought on behalf of the injured

1-16     person, any attorney representing the injured person.

1-17           (c)  As soon as practicable after receiving the offer of

1-18     settlement from the defendant, but not later than any expiration

1-19     date which may accompany the quotation which outlines the terms of

1-20     the structured settlement offered, the attorney receiving the offer

1-21     must present the offer to the injured person or their personal

1-22     representative.  The attorney must provide competent advice and

1-23     counsel regarding the terms, conditions, and attributes of the

 2-1     proposed structured settlement as well as the appropriateness of

 2-2     accepting a structured settlement under the circumstances.

 2-3           (d)  The value of the settlement shall be the actual cost of

 2-4     the total settlement.

 2-5           (e)  If a guardian ad litem has been appointed by the court

 2-6     to participate in the case to the extent necessary to adequately

 2-7     protect the interests of a minor or incompetent, the guardian ad

 2-8     litem's fiduciary duty to the minor or incompetent is one of

 2-9     integrity, loyalty, and the utmost good faith.  As such, it is the

2-10     guardian ad litem's duty to obtain competent counsel from a person

2-11     qualified to analyze and explain structured settlement offers and

2-12     to make suggestions for tailoring the offer to meet the needs of

2-13     the minor or incompetent before the offer is accepted.

2-14           SECTION 2.  This Act applies only to a suit commenced on or

2-15     after the effective date of this Act.  A suit commenced before the

2-16     effective date of this Act is governed by the law applicable to the

2-17     suit immediately before the effective date of this Act, and that

2-18     law is continued in effect for that purpose.

2-19           SECTION 3.  The importance of this legislation and the

2-20     crowded condition of the calendars in both houses create an

2-21     emergency and an imperative public necessity that the

2-22     constitutional rule requiring bills to be read on three several

2-23     days in each house be suspended, and this rule is hereby suspended,

2-24     and that this Act take effect and be in force from and after its

2-25     passage, and it is so enacted.