77R13471 DAK-F By Hinojosa, et al. H.B. No. 1905 Substitute the following for H.B. No. 1905: By Bosse C.S.H.B. No. 1905 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a cause of action that a health care liability claim is 1-3 brought in bad faith. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. The Medical Liability and Insurance Improvement 1-6 Act of Texas (Article 4590i, Vernon's Texas Civil Statutes) is 1-7 amended by adding Subchapter H to read as follows: 1-8 SUBCHAPTER H. CAUSE OF ACTION FOR BAD FAITH 1-9 Sec. 8.01. DEFINITIONS. In this subchapter: 1-10 (1) "Reasonable grounds" means a reasonable basis in 1-11 fact and law. 1-12 (2) "Reckless disregard" means: 1-13 (A) a state or quality on the part of the actor 1-14 of wanton disregard of the rights of others; or 1-15 (B) a conscious indifference on the part of the 1-16 actor to the result that may follow as a consequence of the actor's 1-17 acts. 1-18 Sec. 8.02. CAUSE OF ACTION FOR BAD FAITH. (a) A person may 1-19 bring a cause of action that a health care liability claim is 1-20 brought in bad faith. 1-21 (b) A health care liability claim is brought in bad faith if 1-22 it is maintained or filed with reckless disregard as to whether or 1-23 not reasonable grounds exist for asserting the claim. 1-24 Sec. 8.03. PERSONS LIABLE. A cause of action that a health 2-1 care liability claim is brought in bad faith may be brought against 2-2 any claimant or the attorney of any claimant if the person is 2-3 responsible for conduct constituting a reckless disregard as to 2-4 whether or not reasonable grounds exist for asserting the health 2-5 care liability claim. It is a defense for the claimant or the 2-6 attorney for the claimant that the person could not reasonably have 2-7 had knowledge of the absence of reasonable grounds to assert the 2-8 claim. 2-9 Sec. 8.04. BAD FAITH CLAIM BROUGHT IN BAD FAITH. A person 2-10 asserting a bad faith claim with reckless disregard as to whether 2-11 or not reasonable grounds exist for asserting the claim may be 2-12 liable to the defendant for reasonable expenses in defending the 2-13 lawsuit, including attorney's fees and court costs. 2-14 SECTION 2. (a) This Act takes effect immediately if it 2-15 receives a vote of two-thirds of all the members elected to each 2-16 house, as provided by Section 39, Article III, Texas Constitution. 2-17 If this Act does not receive the vote necessary for immediate 2-18 effect, this Act takes effect September 1, 2001. 2-19 (b) This Act applies only to a cause of action relating to a 2-20 claim for which notice under Section 4.01, Medical Liability and 2-21 Insurance Improvement Act of Texas (Article 4590i, Vernon's Texas 2-22 Civil Statutes), is given on or after the effective date of this 2-23 Act. An action relating to a claim for which notice under Section 2-24 4.01, Medical Liability and Insurance Improvement Act of Texas 2-25 (Article 4590i, Vernon's Texas Civil Statutes), is given before the 2-26 effective date of this Act is governed by the law applicable to the 2-27 action immediately before the effective date of this Act, and that 3-1 law is continued in effect for that purpose.