By Haywood                                      S.B. No. 1817

      75R3845 DAK-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to future medical expenses in civil suits.

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

 1-4           SECTION 1.  Subtitle C, Title 2, Civil Practice and Remedies

 1-5     Code, is amended by adding Chapter 46 to read as follows:

 1-6                    CHAPTER 46.  FUTURE MEDICAL EXPENSES

 1-7           Sec. 46.001.  DEFINITIONS.  In this chapter:

 1-8                 (1)  "Claimant" means a party seeking recovery of

 1-9     future medical expenses, including a plaintiff, counterclaimant,

1-10     crossclaimant, or third-party plaintiff.

1-11                 (2)  "Defendant" includes any party from whom a

1-12     claimant seeks recovery of future medical expenses.

1-13           Sec. 46.002.  SCOPE OF CHAPTER.  This chapter applies to any

1-14     civil action in which a claimant seeks future medical expenses.

1-15           Sec. 46.003.  EVIDENCE OF FUTURE MEDICAL EXPENSES REQUIRED.

1-16     (a)  A court may not enter a judgment that includes an award for

1-17     future medical expenses for the claimant unless the claimant has

1-18     introduced evidence showing that:

1-19                 (1)  there is a medical condition from which the

1-20     claimant is likely to suffer in the future; and

1-21                 (2)  the medical condition is likely to require paid

1-22     treatment to relieve or cure the condition.

1-23           (b)  The showing required by Subsection (a) may be made by an

1-24     affidavit as provided by Section 46.004 or by other evidence

 2-1     introduced at the trial of the case.

 2-2           Sec. 46.004.  AFFIDAVITS RELATING TO FUTURE MEDICAL EXPENSES.

 2-3     (a)  Unless a controverting affidavit is filed as provided by this

 2-4     section, an affidavit making the showing required by Section 46.003

 2-5     is sufficient to support an award by the trier of fact of future

 2-6     medical expenses.

 2-7           (b)  A claimant offering an affidavit to support an award of

 2-8     future medical expenses must file the affidavit with the clerk of

 2-9     the court and serve a copy on each other party to the case at least

2-10     30 days before the date on which evidence is first presented at the

2-11     trial of the case.

2-12           (c)  A defendant intending to controvert an affidavit offered

2-13     by the claimant to support an award of future medical expenses must

2-14     file a counteraffidavit with the clerk of the court and serve a

2-15     copy on each other party or the party's attorney of record:

2-16                 (1)  not later than the earlier of:

2-17                       (A)  30 days after the date the defendant

2-18     receives a copy of the affidavit offered by the claimant; or

2-19                       (B)  14 days before the date on which evidence is

2-20     first presented at the trial of the case; or

2-21                 (2)  with leave of the court, at any time before

2-22     evidence is first presented by the defendant at the trial of the

2-23     case.

2-24           (d)  An affidavit or counteraffidavit must:

2-25                 (1)  be taken before a person authorized to administer

2-26     oaths; and

2-27                 (2)  be made by a person who is qualified, by

 3-1     knowledge, skill, experience, training, education, or other

 3-2     expertise, to testify relating to the matter contained in the

 3-3     affidavit.

 3-4           Sec. 46.005.  FORMS OF PAYMENT.  (a)  A court shall require

 3-5     that any future medical expenses awarded in a settlement or

 3-6     judgment be paid in the manner provided by this section.

 3-7           (b)  Subject to this section, the claimant or defendant may

 3-8     petition the court to award future medical expenses in the form of:

 3-9                 (1)  an insurance policy;

3-10                 (2)  annual payments made to an escrow account; or

3-11                 (3)  a lump sum payment.

3-12           (c)  A court may not award future medical expenses in the

3-13     form of a lump sum payment unless it is shown that the expenses

3-14     will be incurred on or before the first anniversary of the date of

3-15     the award.

3-16           (d)  If future medical expenses are paid through an insurance

3-17     policy as part of a settlement, the parties shall compute the value

3-18     of the coverage as part of the aggregate value of the settlement.

3-19           (e)  A court that approves the payment of future medical

3-20     expenses in the form of annual payments shall provide that:

3-21                 (1)  the annual payments are to extend over a period of

3-22     five years;

3-23                 (2)  the payments are made into an escrow account from

3-24     which the claimant may draw to cover medical expenses related to

3-25     the injury;

3-26                 (3)  the attorney for the claimant manages the account;

3-27                 (4)  the claimant must provide notice to the defendant

 4-1     or a designated representative of the defendant of a claim to draw

 4-2     on the account;

 4-3                 (5)  a claim to draw on the account may be disputed as

 4-4     provided by Subsection (f); and

 4-5                 (6)  the court may accelerate payments to the escrow

 4-6     account on a finding that the claimant's medical condition requires

 4-7     accelerated payments.

 4-8           (f)  The defendant or designated representative of the

 4-9     defendant, including an insurance company, may dispute a claim to

4-10     draw from the account before the 31st day after the date the

4-11     defendant or representative receives notice of the claim.  The

4-12     defendant or representative of the defendant may contest the claim

4-13     in a district court or by alternative methods of dispute resolution

4-14     agreed to by the parties.

4-15           SECTION 2.  This Act takes effect September 1, 1997, and

4-16     applies only to a cause of action that accrues on or after that

4-17     date.  An action that accrued before the effective date of this Act

4-18     is governed by the law applicable to the action immediately before

4-19     the effective date of this Act, and that law is continued in effect

4-20     for that purpose.

4-21           SECTION 3.  The importance of this legislation and the

4-22     crowded condition of the calendars in both houses create an

4-23     emergency and an imperative public necessity that the

4-24     constitutional rule requiring bills to be read on three several

4-25     days in each house be suspended, and this rule is hereby suspended.