78R4172 AJA-D
By: Harris S.B. No. 312
A BILL TO BE ENTITLED
AN ACT
relating to civil liability of and liability insurance for certain
nursing institutions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. LIMITATION ON CIVIL DAMAGES IN CERTAIN ACTIONS
SECTION 1.01. Section 41.008, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 41.008. LIMITATION ON AMOUNT OF RECOVERY. (a) In an
action in which a claimant seeks recovery of exemplary damages, the
trier of fact shall determine the amount of economic damages
separately from the amount of other compensatory damages.
(b) Except as provided by this section, exemplary
[Exemplary] damages awarded against a defendant may not exceed an
amount equal to the greater of:
(1)(A) two times the amount of economic damages; plus
(B) an amount equal to any noneconomic damages
found by the jury, not to exceed $750,000; or
(2) $200,000.
(c) Except as provided by Subsection (d), Subsection (b)
does not apply to a cause of action against a defendant from whom a
plaintiff seeks recovery of exemplary damages based on conduct
described as a felony in the following sections of the Penal Code
if, except for Sections 49.07 and 49.08, the conduct was committed
knowingly or intentionally:
(1) Section 19.02 (murder);
(2) Section 19.03 (capital murder);
(3) Section 20.04 (aggravated kidnapping);
(4) Section 22.02 (aggravated assault);
(5) Section 22.011 (sexual assault);
(6) Section 22.021 (aggravated sexual assault);
(7) Section 22.04 (injury to a child, elderly
individual, or disabled individual);
(8) Section 32.21 (forgery);
(9) Section 32.43 (commercial bribery);
(10) Section 32.45 (misapplication of fiduciary
property or property of financial institution);
(11) Section 32.46 (securing execution of document by
deception);
(12) Section 32.47 (fraudulent destruction, removal,
or concealment of writing);
(13) Chapter 31 (theft) the punishment level for which
is a felony of the third degree or higher;
(14) Section 49.07 (intoxication assault); or
(15) Section 49.08 (intoxication manslaughter).
(d) Subsection (b) applies to a cause of action against a
defendant that is a not-for-profit nursing institution licensed
under Chapter 242, Health and Safety Code, and from whom a plaintiff
seeks recovery of exemplary damages based on conduct described as a
felony in Section 22.04, Penal Code, only if the defendant is
finally convicted under that section for the conduct that gives
rise to the plaintiff's cause of action.
(e) In this section, "intentionally" and "knowingly" have
the same meanings assigned those terms in Sections 6.03(a) and (b),
Penal Code.
(f) [(e)] The provisions of Subsections (a), [and] (b),
(d), and (h) may not be made known to a jury by any means, including
voir dire, introduction into evidence, argument, or instruction.
(g) [(f)] Subsection (b) does not apply to a cause of action
for damages arising from the manufacture of methamphetamine as
described by Chapter 99.
(h) Exemplary damages awarded against a defendant that is a
not-for-profit nursing institution licensed under Chapter 242,
Health and Safety Code, may not exceed an amount equal to the
greater of:
(1)(A) two times the amount of economic damages; plus
(B) an amount equal to any noneconomic damages
found by the jury, not to exceed $250,000; or
(2) $200,000.
SECTION 1.02. Section 41.008, Civil Practice and Remedies
Code, as amended by this article, applies only to an action filed on
or after the effective date of this Act. An action filed before the
effective date of this Act is governed by the law in effect
immediately before that date, and that law is continued in effect
for that purpose.
ARTICLE 2. ADMISSIBILITY OF CERTAIN EVIDENCE IN CIVIL ACTION
SECTION 2.01. Subchapter B, Chapter 32, Human Resources
Code, is amended by adding Section 32.060 to read as follows:
Sec. 32.060. ADMISSIBILITY OF CERTAIN EVIDENCE RELATING TO
NOT-FOR-PROFIT NURSING INSTITUTIONS. (a) The following are not
admissible as evidence in a civil action:
(1) any finding by the department that a
not-for-profit institution licensed under Chapter 242, Health and
Safety Code, has violated a standard for participation in the
medical assistance program under this chapter; or
(2) the fact of the assessment of a monetary penalty
against a not-for-profit institution under Section 32.021 or the
payment of the penalty by an institution.
(b) This section does not apply in an enforcement action in
which the state or an agency or political subdivision of the state
is a party.
SECTION 2.02. Subchapter A, Chapter 242, Health and Safety
Code, is amended by adding Section 242.017 to read as follows:
Sec. 242.017. ADMISSIBILITY OF CERTAIN EVIDENCE IN CIVIL
ACTIONS. (a) The following are not admissible as evidence in a
civil action:
(1) any finding by the department that a
not-for-profit institution has violated this chapter or a rule
adopted under this chapter; or
(2) the fact of the assessment of a penalty against a
not-for-profit institution under this chapter or the payment of the
penalty by an institution.
(b) This section does not apply in an enforcement action in
which the state or an agency or political subdivision of the state
is a party.
SECTION 2.03. The following laws are repealed:
(1) Sections 32.021(i) and (k), Human Resources Code;
and
(2) Section 242.050, Health and Safety Code, as added
by Chapter 1284, Acts of the 77th Legislature, Regular Session,
2001.
ARTICLE 3. FILING OF RATES FOR CERTAIN LIABILITY INSURANCE
COVERAGE
SECTION 3.01. On or before the 60th day after the effective
date of this Act, each insurer described by Article 5.13, Insurance
Code, including a Lloyd's plan and the joint underwriting
association established under Article 21.49-3, Insurance Code,
that writes professional liability insurance coverage in this state
for a nursing institution licensed under Chapter 242, Health and
Safety Code, shall file new rates for that coverage under Articles
5.13-2 and 5.15-1, Insurance Code, to ensure that the reduction in
risk that is effected by the changes in law made by this Act is
reflected in those rates.
ARTICLE 4. EFFECTIVE DATE
SECTION 4.01. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2003.