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.