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.