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.

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