1-1 By: Harris S.B. No. 883 1-2 (In the Senate - Filed March 3, 1997; March 5, 1997, read 1-3 first time and referred to Committee on Jurisprudence; 1-4 April 9, 1997, reported favorably by the following vote: Yeas 6, 1-5 Nays 0; April 9, 1997, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to structured settlement offers in certain personal injury 1-9 suits. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Chapter 30, Civil Practice and Remedies Code, is 1-12 amended by adding Section 30.011 to read as follows: 1-13 Sec. 30.011. STRUCTURED SETTLEMENT OFFERS IN CERTAIN 1-14 PERSONAL INJURY SUITS. (a) This section applies only to a suit 1-15 for damages arising from personal injury to minors, incapacitated 1-16 persons, or in which the personal injury has resulted in the 1-17 substantial disablement of the person injured. 1-18 (b) On or after the commencement of the suit, if the 1-19 defendant makes an offer of settlement, it must be made in writing 1-20 and the offer presented to: 1-21 (1) the attorney for the plaintiff; and 1-22 (2) if the suit is brought on behalf of the injured 1-23 person, any attorney representing the injured person. 1-24 (c) As soon as practicable after receiving the offer of 1-25 settlement from the defendant, but not later than any expiration 1-26 date which may accompany the quotation which outlines the terms of 1-27 the structured settlement offered, the attorney receiving the offer 1-28 must present the offer to the injured person or their personal 1-29 representative. The attorney must provide competent advice and 1-30 counsel regarding the terms, conditions, and attributes of the 1-31 proposed structured settlement as well as the appropriateness of 1-32 accepting a structured settlement under the circumstances. 1-33 (d) The value of the settlement shall be the actual cost of 1-34 the total settlement. 1-35 (e) If a guardian ad litem has been appointed by the court 1-36 to participate in the case to the extent necessary to adequately 1-37 protect the interests of a minor or incompetent, the guardian ad 1-38 litem's fiduciary duty to the minor or incompetent is one of 1-39 integrity, loyalty, and the utmost good faith. As such, it is the 1-40 guardian ad litem's duty to obtain competent counsel from a person 1-41 qualified to analyze and explain structured settlement offers and 1-42 to make suggestions for tailoring the offer to meet the needs of 1-43 the minor or incompetent before the offer is accepted. 1-44 SECTION 2. This Act applies only to a suit commenced on or 1-45 after the effective date of this Act. A suit commenced before the 1-46 effective date of this Act is governed by the law applicable to the 1-47 suit immediately before the effective date of this Act, and that 1-48 law is continued in effect for that purpose. 1-49 SECTION 3. The importance of this legislation and the 1-50 crowded condition of the calendars in both houses create an 1-51 emergency and an imperative public necessity that the 1-52 constitutional rule requiring bills to be read on three several 1-53 days in each house be suspended, and this rule is hereby suspended, 1-54 and that this Act take effect and be in force from and after its 1-55 passage, and it is so enacted. 1-56 * * * * *