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AN ACT
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relating to health care professional liability coverage for certain |
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public institutions of higher education. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 59, Education Code, is |
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amended to read as follows: |
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CHAPTER 59. HEALTH CARE PROFESSIONAL [MEDICAL] MALPRACTICE |
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COVERAGE FOR CERTAIN INSTITUTIONS |
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SECTION 2. The heading to Subchapter A, Chapter 59, |
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Education Code, is amended to read as follows: |
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SUBCHAPTER A. HEALTH CARE [MEDICAL] PROFESSIONAL LIABILITY |
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SECTION 3. Sections 59.01(1), (2), (3), and (4), Education |
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Code, are amended to read as follows: |
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(1) "Health care professional [Medical] staff members |
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or students" means: |
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(A) physicians [medical doctors, doctors of
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osteopathy], dentists, veterinarians, [and] podiatrists, physician |
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assistants, nurses, pharmacists, and other health care providers |
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who: |
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(i) are appointed to the faculty or |
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[professional medical staff] employed [for student health
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services] by or volunteer for The University of Texas System, The |
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Texas A&M University System, the Texas Tech University System, the |
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Texas State University System, the University of Houston System, |
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Stephen F. Austin State University, or the University of North |
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Texas System; and |
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(ii) either: |
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(a) are appointed or employed on a |
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full-time basis; [Health Science Center at Fort Worth, either full
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time] or |
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(b) are appointed or volunteer on a |
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part-time basis and who[, although appointed less than full time
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(including volunteers), either] devote their total professional |
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service to providing health services [such appointment] or provide |
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services to patients by assignment from the department chairman; |
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and |
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(B) interns, residents, fellows, [and] medical |
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students, [or] dental students, veterinary students, [and] |
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students of osteopathic medicine, nursing students, pharmacy |
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students, and students of any other health care profession that |
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requires a license, certificate, or other authorization under Title |
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3, Occupations Code, [osteopathy] participating in a patient-care |
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program in The University of Texas System, The Texas A&M University |
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System, the Texas Tech University System, the Texas State |
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University System, the University of Houston System, Stephen F. |
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Austin State University, or the University of North Texas System |
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[Health Science Center at Fort Worth]. |
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(2) "Health care liability [Medical malpractice] |
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claim" means a cause of action against a physician or health care |
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professional for treatment, lack of treatment, or other claimed |
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departure from accepted standards of medical care, health care, or |
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veterinary care, or safety or professional or administrative |
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services directly related to health care, which proximately results |
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in injury to or death of a [the] patient, whether the [patient's] |
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claim or cause of action [or the executor's claim or cause of action
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under Section 71.021, Civil Practice and Remedies Code,] sounds in |
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tort or contract. |
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(3) "Board" means the board of regents of The |
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University of Texas System, the board of regents of The Texas A&M |
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University System, the board of regents of the Texas Tech |
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University System, the board of regents of the Texas State |
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University System, the board of regents of the University of |
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Houston System, the board of regents of Stephen F. Austin State |
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University, or the board of regents of the University of North Texas |
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System. |
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(4) "Fund" means the health care [medical] |
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professional liability fund. |
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SECTION 4. Sections 59.02, 59.04, 59.05, and 59.06, |
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Education Code, are amended to read as follows: |
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Sec. 59.02. HEALTH CARE [MEDICAL] PROFESSIONAL LIABILITY |
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FUND. (a) Each board may establish a separate self-insurance fund |
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to pay any damages adjudged in a court of competent jurisdiction or |
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a settlement of any health care liability [medical malpractice] |
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claim against a health care professional [member of the medical] |
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staff member or student [students] arising from the exercise of the |
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member's or student's [his] appointment, duties, or training with |
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The University of Texas System, The Texas A&M University System, |
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the Texas Tech University System, the Texas State University |
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System, the University of Houston System, Stephen F. Austin State |
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University, or the University of North Texas System [Health Science
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Center at Fort Worth]. |
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(b) The boards may pay from the funds all expenses incurred |
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in the investigation, settlement, defense, or payment of claims |
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described above on behalf of the health care professional [medical] |
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staff members or students. |
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(c) On the establishment of each fund, transfers to the fund |
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shall be made in an amount and at such intervals as determined by |
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the board. Each board may receive and accept any gifts or donations |
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specified for the purposes of this subchapter and deposit those |
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gifts or donations into the fund. Each board may invest money |
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deposited in the fund, and any income received shall be retained in |
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the fund. The money shall be deposited in any of the approved |
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depository banks of The University of Texas System, The Texas A&M |
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University System, the Texas Tech University System, the Texas |
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State University System, the University of Houston System, Stephen |
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F. Austin State University, or the University of North Texas System |
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[Health Science Center at Fort Worth]. All expenditures from the |
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funds shall be paid pursuant to approval by the boards. |
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Sec. 59.04. PURCHASE OF INSURANCE. Each board may purchase |
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health care liability [medical malpractice] insurance from an |
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insurance company authorized to engage in the [do] business of |
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insurance in this state as it considers necessary to carry out the |
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purpose of this subchapter. |
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Sec. 59.05. LEGAL COUNSEL. Each board may employ private |
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legal counsel to represent the health care professional [medical] |
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staff members or [and] students covered by this subchapter under |
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the rules of the board. |
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Sec. 59.06. LIMITATION ON APPROPRIATED FUNDS. Funds |
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appropriated by the legislature to The University of Texas System, |
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The Texas A&M University System, [either system, to] the Texas Tech |
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University System [Health Sciences Center, to the Texas Tech
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University Health Sciences Center at El Paso], the Texas State |
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University System, the University of Houston System, Stephen F. |
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Austin State University, or [to] the University of North Texas |
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System [Health Science Center at Fort Worth] from the General |
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Revenue Fund may not be used to establish or maintain the fund, to |
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purchase insurance, or to employ private legal counsel. |
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SECTION 5. Sections 59.08(a) and (e), Education Code, are |
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amended to read as follows: |
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(a) The state shall indemnify a health care professional |
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[member of the medical] staff member or [a] student for damages paid |
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as required by a judgment on or settlement of a health care |
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liability [medical malpractice] claim arising out of the provision |
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of charitable care or services. |
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(e) The attorney general is entitled to approve any |
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settlement of the portion of a health care liability [medical
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malpractice] claim that may result in the state being liable for |
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indemnification of the defendant under this section. If the |
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attorney general does not approve a settlement, the state is not |
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liable for indemnification of the defendant under this section. The |
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attorney general shall base the determination on the best interests |
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of the defendant. |
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SECTION 6. Section 59.08, Education Code, as amended by |
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this Act, applies only to a cause of action that accrues on or after |
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the effective date of this Act. A cause of action that accrued |
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before the effective date of this Act is governed by the law as it |
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existed immediately before the effective date of this Act, and that |
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law is continued in effect for that purpose. |
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SECTION 7. This Act takes effect September 1, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1592 was passed by the House on April |
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10, 2019, by the following vote: Yeas 145, Nays 1, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1592 was passed by the Senate on May |
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14, 2019, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |