Amend CSHB 4 as follows:                                                     
	(1)  On page 12, between lines 5 and 6, insert:                                
	Sec. 42.0015.  POLICY; INTENT.  It is the policy of this 
state to enact incentives and procedures to encourage the 
settlement of civil cases on terms that are fair and just to all 
parties, whether claimant or defendant.  The procedures in this 
chapter are intended to be balanced toward all claimants and all 
defendants.  It is the intent of the Legislature that, to the 
greatest extent possible, these procedures shall be implemented 
such that claims are resolved efficiently and fairly and without 
overreaching by any party or abuse of the system of civil justice.
	(2)  Strike page 13, line 22 through page 16, line 25, and 
substitute:       
	Sec. 42.051.  SETTLEMENT OFFER.  (a)  A party or a group of 
parties may serve on a party a settlement offer to settle all claims 
in the action between the parties.
	(b)  The settlement offer must:                                         
		(1)  be in writing;                                                    
		(2)  state that it is a settlement offer under this 
chapter;         
		(3)  state the terms by which the claims may be settled;               
		(4)  state a deadline by which the settlement offer 
must be accepted; and
		(5)  be served on the claimant to whom the settlement 
offer is made. 
	(c)  A party may not make a settlement offer under this 
section before the 90th day after the later of:
		(1)  the date any of the defendants filed a responsive 
pleading; or  
		(2)  the date any of the defendants otherwise appeared 
in the action.
	(d)  A party may not make a settlement offer under this 
section after the 30th day before the date set for trial.
	(e)  The parties are not required to file a settlement offer 
with the court.
	Sec. 42.052.  ACCEPTANCE OF SETTLEMENT OFFER.  (a)  A party 
may accept a settlement offer made under this chapter on or before 5 
p.m. on the 30th day after the date the party received the 
settlement offer or before the deadline stated in the settlement 
offer, whichever is later.
	(b)  Acceptance of a settlement offer must be:                          
		(1)  in writing; and                                                   
		(2)  served on the party who made the settlement offer.                
	Sec. 42.053.  WITHDRAWING SETTLEMENT OFFER.  (a)  A party may 
withdraw a settlement offer by serving a written withdrawal on the 
party to whom the settlement offer was made before the party accepts 
the settlement offer.  A party may not accept a settlement offer 
after it is withdrawn.
	(b)  If a settlement offer is withdrawn, the party that made 
the settlement offer is not entitled to recover litigation costs 
under this chapter.
	Sec. 42.054.  REJECTION OF SETTLEMENT OFFER.  For purposes 
of this chapter, a settlement offer is rejected if:
		(1)  the party to whom the settlement offer was made 
rejects the settlement offer by serving a written rejection on any 
party making the settlement offer; or
		(2)  the settlement offer is not withdrawn and is not 
accepted before the deadline for accepting the offer.
	Sec. 42.055.  AWARD OF LITIGATION COSTS.  (a)  Any party who 
makes a settlement offer under this chapter to another party  
seeking monetary relief shall recover litigation costs from the 
party if:
		(1)  the settlement offer is rejected;                                 
		(2)  the amount of monetary relief to be awarded in the 
judgment, exclusive of any litigation costs awarded under this 
chapter and exclusive of any attorney's fees, expenses, and costs 
incurred by the party after rejection of the offer, is more 
favorable to the party who made the settlement offer than the 
settlement offer; and
		(3)  the difference between the amount of monetary 
relief to be awarded to the party in the judgment, exclusive of any 
litigation costs awarded under this chapter and exclusive of any 
attorney's fees, expenses, and costs incurred by the party after 
rejection of the offer, and the amount of the settlement offer is 
equal to or greater than 10 percent of the amount of the settlement 
offer.
	(b)  Any party who makes a settlement offer to a party 
seeking nonmonetary relief, other than injunctive relief, may 
recover litigation costs from the party if:
		(1)  the settlement offer is rejected; and                             
		(2)  the judgment, exclusive of any litigation costs 
awarded under this chapter and exclusive of any attorney's fees, 
expenses, and costs incurred by the party after rejection of the 
offer, is more favorable to the party who made the settlement offer 
than the settlement offer.
	(c)  Litigation costs awarded to a party under this section 
include only those litigation costs incurred by the party who made a 
settlement offer after the rejection of the earliest settlement 
offer that entitles the party to an award of litigation costs under 
this section.
	(d)  Litigation costs awarded under this section shall:                 
		(1)  be awarded in the judgment;                                       
		(2)  offset the claimant's recovery against the 
offering defendant; or
		(3)  be added to the claimant's recovery against any 
nonsettling defendant.
	(3)  On page 18, strike lines 2-8, and substitute:                      
	(d)  If litigation costs are awarded against a party under 
this chapter, the party shall not be awarded any attorney's fees, 
expenses, or costs to which the party would otherwise be entitled 
under any other law that were incurred by the party after the 
party's rejection of the earliest settlement offer that entitles 
the other party to an award of litigation costs under this section.