By Hinojosa H.B. No. 1905 77R6471 DAK-F 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. CAUSE OF ACTION FOR BAD FAITH. (a) A person may 1-10 bring a cause of action that a health care liability claim is 1-11 brought in bad faith. 1-12 (b) A health care liability claim is brought in bad faith if 1-13 it is maintained or filed with reckless disregard as to whether or 1-14 not reasonable grounds exist for asserting the claim. 1-15 (c) The person may bring the cause of action as a separate 1-16 suit or as a counterclaim in the suit involving the health care 1-17 liability claim. 1-18 Sec. 8.02. NOTICE. A person or the person's agent bringing 1-19 a cause of action that a health care liability claim is brought in 1-20 bad faith shall give written notice by certified mail, return 1-21 receipt requested, to the party asserting the health care liability 1-22 claim or the party's attorney: 1-23 (1) if the person is bringing the cause of action as a 1-24 separate suit, before the 60th day before the date the suit is 2-1 filed; or 2-2 (2) if the person is bringing the cause of action as a 2-3 counterclaim, before the 30th day before the date the trial of the 2-4 health care liability claim begins. 2-5 Sec. 8.03. PERSONS LIABLE. A cause of action that a health 2-6 care liability claim is brought in bad faith may be brought against 2-7 any claimant or defendant or the attorney of any claimant or 2-8 defendant. 2-9 Sec. 8.04. VENUE. A cause of action that a health care 2-10 liability claim is brought in bad faith may be brought as a 2-11 separate suit: 2-12 (1) in the county where the health care liability 2-13 claim was brought; or 2-14 (2) in a district court in Travis County. 2-15 SECTION 2. (a) This Act takes effect immediately if it 2-16 receives a vote of two-thirds of all the members elected to each 2-17 house, as provided by Section 39, Article III, Texas Constitution. 2-18 If this Act does not receive the vote necessary for immediate 2-19 effect, this Act takes effect September 1, 2001. 2-20 (b) This Act applies only to a cause of action relating to a 2-21 claim for which notice under Section 4.01, Medical Liability and 2-22 Insurance Improvement Act of Texas (Article 4590i, Vernon's Texas 2-23 Civil Statutes), is given on or after the effective date of this 2-24 Act. An action relating to a claim for which notice under Section 2-25 4.01, Medical Liability and Insurance Improvement Act of Texas 2-26 (Article 4590i, Vernon's Texas Civil Statutes), is given before the 2-27 effective date of this Act is governed by the law applicable to the 3-1 action immediately before the effective date of this Act, and that 3-2 law is continued in effect for that purpose.