HBA-NRS C.S.H.B. 1905 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1905 By: Hinojosa Civil Practices 4/23/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE The Civil Practice and Remedies Code and Rule 13 of the Texas Rules of Civil Procedure establish sanctions and violations for liability for filing bad faith or groundless claims. However, these laws are limited in scope and only a court can impose them. Physicians' reputations have been ruined by groundless or frivolous lawsuits leading to the possibility of these physicians losing their practices with little or no compensation for the damage such lawsuits inflict. C.S.H.B. 1905 allows a cause of action when a health care liability claim is brought with a reckless disregard as to whether reasonable grounds exist to bring the lawsuit. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 1905 amends the Medical Liability and Insurance Improvement Act of Texas to authorize a person to bring a cause of action that a health care liability claim (claim) is brought in bad faith if the claim is maintained or filed with reckless disregard as to whether or not reasonable grounds exist for asserting the claim. The bill authorizes a cause of action that a claim is brought in bad faith to be brought against any claimant or the attorney of any claimant if the person is responsible for conduct constituting a reckless disregard as to whether or not reasonable grounds exist for asserting the health care liability claim. It is a defense for the claimant that the person could not reasonably have had knowledge of the absence of reasonable grounds to assert the claim. The bill provides that a person asserting a bad faith claim with reckless disregard as to whether or not reasonable grounds exist for asserting the claim may be liable to the defendant for reasonable expenses in defending the lawsuit, including attorney's fees and court costs. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1905 modifies the original bill by removing the requirement of giving notice to the party asserting the health care liability claim by the person bringing a cause of action for bad faith. The substitute removes the provision authorizing certain venues where a cause of action for bad faith can be brought. The substitute provides that a person asserting a bad faith claim may be liable to the defendant for reasonable expenses. The substitute provides that it is a defense for the claimant that the person could not reasonably have had knowledge of the absence of reasonable grounds to assert the claim. The substitute adds definitions of "reasonable grounds" and "reckless disregard."