78R1440 AJA-D

By:  Gutierrez                                                    H.B. No. 812



A BILL TO BE ENTITLED

AN ACT

relating to distribution of part of each exemplary damage award to 
the permanent school fund.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 41, Civil Practice and Remedies Code, is 
amended by adding Section 41.014 to read as follows:
	Sec. 41.014.  DISTRIBUTION OF AWARD.  (a)  Notwithstanding 
any contractual agreement between a claimant and the claimant's 
attorney, a court shall order an award of exemplary damages paid as 
follows:
		(1)  15 percent to the claimant;                                       
		(2)  10 percent to the claimant's attorney; and                        
		(3)  75 percent to the permanent school fund.                          
	(b)  The provisions of this section may not be made known to 
the jury by any means, including voir dire, introduction into 
evidence, argument, or instruction.
	SECTION 2.  This Act takes effect September 1, 2003, and, 
except as provided by a contract entered into before the effective 
date of this Act, applies only to damages awarded for a cause of 
action that accrues on or after that date.  Damages awarded for a 
cause of action that accrues before the effective date of this Act 
are governed by the law in effect immediately before that date, and 
that law is continued in effect for that purpose.