SRC-DBM S.B. 1064 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1064
By: Fraser
Economic Development
3/31/1999
As Filed


DIGEST 

Currently, a 19th century rule of evidence, the "collateral source rule,"
prevents a defendant from introducing evidence that the plaintiff has been
compensated for damages by insurance or workers' compensation, or that any
future bills will be paid by a third party.  The majority of states have
abolished the collateral source rule and allow juries to decide cases after
hearing all the evidence. Texas is one of only 14 states that applies the
common law collateral source rule in all tort actions without exception.
S.B. 1064 would establish the Supreme Court Advisory Committee on
Collateral Benefits to assist the legislature in determining whether the
Civil Practice and Remedies Code or the Texas Rules of Civil Procedure
should be amended to authorize the admission of evidence of collateral
benefits paid to claimants in civil lawsuits and to require the reduction
of unjustified double recovery in civil cases. 

PURPOSE

As proposed, S.B. 1064 establishes a supreme court advisory committee to
study unjustified double recovery in certain civil actions. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 6, Civil Practice and Remedies Code, by adding
Chapter 145, as follows: 

CHAPTER 145.  SUPREME COURT ADVISORY COMMITTEE ON TREATMENT OF
COLLATERAL BENEFITS IN DAMAGE CALCULATIONS

 Sec. 145.001.  DEFINITION.  Defines "collateral benefits."

Sec. 145.002.  APPOINTMENT OF ADVISORY COMMITTEE.  Requires the supreme
court to appoint an advisory committee of no less than 15 persons,
including legislators, judges, and other persons, to assist the legislature
in determining whether this code or the Texas Rules of Civil Procedure
should be amended to authorize the admission of evidence of collateral
benefits paid to claimants in civil lawsuits and to require the reduction
of unjustified double recovery in civil cases by the amount of collateral
benefits paid to claimants in civil lawsuits.  Requires the committee to be
known as the Supreme Court Advisory Committee on Collateral Benefits
(committee). 

Sec. 145.003.  REPORT OF FINDINGS.  Requires the committee to prepare a
report of its findings regarding unjustified double recovery of collateral
benefits and deliver copies of the report to the chief justice of the
supreme court, the lieutenant governor, and the speaker of the house
representatives. 

Sec. 145.004.  REVIEW OF RULES.  Requires the supreme court to review the
Texas Rules of Civil Procedure to determine changes needed to incorporate
the committee's recommendations, if the committee makes recommendations
regarding unjustified double  recovery of collateral benefits. 

SECTION 2.Effective date: September 1, 1999.

 SECTION 3.Emergency clause.