1. Health Insurance
SB 10: Averitt. Relating to the creation of employer health benefit plan groups. SB 10 allows small employers to form group health cooperatives with other small and large employers in order to obtain health coverage for employees and sets forth provisions for the creation and conduct of such cooperatives.
Status: Passed by Senate on 4/9/03. Passed by House, with amendments on 5/26/03. Senate concurred with House amendments on 5/29/03. Both chambers signed bill and it was sent to the Governor for signature 5/31/03. The governor signed the bill on 6/20/03 and it is effective 9/1/03.
SB 541: Williams. Relating to authorizing insurers and health maintenance organizations to issue plans that do not include state-mandated health benefits. Under current Texas law, health insurance carriers are required to include many state-mandated benefits in their accident and sickness policies. SB. 541 allows insurers and health maintenance organizations to offer policies that do not provide state-mandated health benefits.
Status: Passed Senate on 4/15/03. Passed House, with amendments on 5/26/03. Senate concurred with House amendments on 5/59.03/ Both chambers signed bill and it was sent to the Governor for signature on 6/2/03. He signed it 6/20/03 and it is effective on 9/1/03.
HB 897: Woolley. Relating to the operation of certain employer coalitions and cooperatives established for the provision of health benefits coverage. This bill clarifies that a small employer heath coalition is a single small employer for all purposes under the Insurance Code.
Status: Passed House 4/23/03. Passed Senate with amendments 5/28.03 Senate concurred with amendments on 5/30.03 and both chambers signed bill. It was sent to the Governor for signature on 6/2/03. It was signed on 6/18/03 and becomes effective 9/1/03
2. Medical Malpractice
HB 3: Nixon. Relating to medical liability claims.
Status: 3/04/03; Passed out of committee & combined with HB 4 in # 3 below.
SB 339: Nelson. The Texas Medical Liability Insurance Underwriting Association (JUA) was created to provide a means for physicians and health care providers to obtain medical liability insurance when such coverage is not available in the admitted market. Currently, all medical malpractice liability insurance policies written by the JUA are written on an annual basis. However, some physicians need temporary coverage from the JUA while they attempt to secure insurance in the admitted voluntary market. SB 339 allows the JUA to issue medical liability insurance policies for terms of less than one year in duration and to offer installment payment plans.
Status: Passed Senate 3/27/03. Passed House 5/1/03. Signed in both chambers 5/5/03. Signed by the Governor 5/15/03. The bill is effective on 9/1/03.
3. Tort Reform
HB 4: Nixon. Relating to reform of certain procedures and remedies in civil actions. This bill would lower the cost of doing business in Texas by allowing a jury to allocate fault to any individual who may be responsible for the claimant’s alleged harm and establishing an offer of settlement rule for the defendant to encourage resolution of lawsuit before high costs are incurred. Additionally, it prevents innocent sellers of products from being sued in product liability lawsuits; ends the abusive use of class action lawsuits; and caps attorney fees. Further, it caps at $250,000 non-economic damages for all doctors, as well as a single institution, and caps at $500,000 all health-care institutions involved in a medical liability case.
Status: Passed by the House on 3/27/03. Passed by the Senate, with amendments, on 5/16/03. Conference Committee appointed. Both House and Senate passed Conference Committee report on 6/1/03. Both chambers signed bill on 6/2/03; it was sent to the Governor for signature on 6/4/03; and he signed it on June 11th. The caps contained in this bill will not be effective unless voters pass a constitutional amendment – see HJR 3 below.
HJR 3: Nixon. Requires the submission to the voters of a constitutional amendment concerning civil lawsuits against doctors and health care providers. Authorizes the Texas state legislature to determine caps / limitations on non-economic damages in medical liability lawsuits. Requires this proposed constitutional amendment to be submitted to the voters at an election to be held September 13, 2003.
Reason: In 1977 the 65th Texas Legislature passed the Medical Liability and Insurance Improvement Act of Texas to cover health care liability claims. The Act contained a $500,000-cap on all non-economic damages for health care liability claims. In 1988, in Lucas v. United States, 757 S.W.2d 687 (Tex. 1988), the Texas Supreme Court held that the limitation on these non-economic damages was unconstitutional as applied to common law causes of action.
Status: Passed House 3/28/03; passed Senate on 5/19/03; signed in both House & Senate and filed with the Secretary of State on 5/20/03.
4. Regulation
SB 340: Staples. Currently the Tax Code requires the rendering of personal property used in the production of income for ad valorem tax purposes; however, no penalty exists for the failure to render such property. This bill creates a penalty for the failure to render such properties and provides criteria for the information that is required to be included in the rendition statement.
Status: Last Action: Passed Senate 4/24/03. Passed House, with amendments, 5/10/03. Conference committee appointed; both chambers adopted that report on 5/31/03 and signed bill on 6/2/03; and the bill was sent to the Governor for signature 6/3/03. He signed it on 6/20/03 and the bill is effective for tax years beginning after 1/1/04, although some terms are effective before and after that date.
5. General Business
HB 804: Geren. Relating to the Minimum Wage. Currently, there is no Texas provision preventing municipalities from establishing their own ‘living’ wage, which is defined as an amount either above or below the federal minimum wage that is deemed as necessary for a person to live. Differing wage structures throughout the state would present many problems for businesses. This bill will ensure the uniform application of the federal minimum wage in private employment across the state.
Status: Passed by House 4/8/03. Passed by Senate, with amendments, on 5/21/03. House concurred with amendments and both chambers signed bill by 5/26/03. It was sent to the Governor for signature 5/27/03. The bill was signed 6/20/03 and becomes effective on 9/1/03.
