Texas 2009 - 81st Regular

Texas House Bill HB3101 Compare Versions

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11 81R10749 YDB-F
22 By: Leibowitz H.B. No. 3101
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the deceptive trade practice of charging for certain
88 preventable adverse health care events.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Section 17.46(b), Business & Commerce Code, is
1111 amended to read as follows:
1212 (b) Except as provided in Subsection (d) of this section,
1313 the term "false, misleading, or deceptive acts or practices"
1414 includes, but is not limited to, the following acts:
1515 (1) passing off goods or services as those of another;
1616 (2) causing confusion or misunderstanding as to the
1717 source, sponsorship, approval, or certification of goods or
1818 services;
1919 (3) causing confusion or misunderstanding as to
2020 affiliation, connection, or association with, or certification by,
2121 another;
2222 (4) using deceptive representations or designations
2323 of geographic origin in connection with goods or services;
2424 (5) representing that goods or services have
2525 sponsorship, approval, characteristics, ingredients, uses,
2626 benefits, or quantities which they do not have or that a person has
2727 a sponsorship, approval, status, affiliation, or connection which
2828 he does not;
2929 (6) representing that goods are original or new if
3030 they are deteriorated, reconditioned, reclaimed, used, or
3131 secondhand;
3232 (7) representing that goods or services are of a
3333 particular standard, quality, or grade, or that goods are of a
3434 particular style or model, if they are of another;
3535 (8) disparaging the goods, services, or business of
3636 another by false or misleading representation of facts;
3737 (9) advertising goods or services with intent not to
3838 sell them as advertised;
3939 (10) advertising goods or services with intent not to
4040 supply a reasonable expectable public demand, unless the
4141 advertisements disclosed a limitation of quantity;
4242 (11) making false or misleading statements of fact
4343 concerning the reasons for, existence of, or amount of price
4444 reductions;
4545 (12) representing that an agreement confers or
4646 involves rights, remedies, or obligations which it does not have or
4747 involve, or which are prohibited by law;
4848 (13) knowingly making false or misleading statements
4949 of fact concerning the need for parts, replacement, or repair
5050 service;
5151 (14) misrepresenting the authority of a salesman,
5252 representative or agent to negotiate the final terms of a consumer
5353 transaction;
5454 (15) basing a charge for the repair of any item in
5555 whole or in part on a guaranty or warranty instead of on the value of
5656 the actual repairs made or work to be performed on the item without
5757 stating separately the charges for the work and the charge for the
5858 warranty or guaranty, if any;
5959 (16) disconnecting, turning back, or resetting the
6060 odometer of any motor vehicle so as to reduce the number of miles
6161 indicated on the odometer gauge;
6262 (17) advertising of any sale by fraudulently
6363 representing that a person is going out of business;
6464 (18) advertising, selling, or distributing a card
6565 which purports to be a prescription drug identification card issued
6666 under Section 4151.152, Insurance Code, in accordance with rules
6767 adopted by the commissioner of insurance, which offers a discount
6868 on the purchase of health care goods or services from a third party
6969 provider, and which is not evidence of insurance coverage, unless:
7070 (A) the discount is authorized under an agreement
7171 between the seller of the card and the provider of those goods and
7272 services or the discount or card is offered to members of the
7373 seller;
7474 (B) the seller does not represent that the card
7575 provides insurance coverage of any kind; and
7676 (C) the discount is not false, misleading, or
7777 deceptive;
7878 (19) using or employing a chain referral sales plan in
7979 connection with the sale or offer to sell of goods, merchandise, or
8080 anything of value, which uses the sales technique, plan,
8181 arrangement, or agreement in which the buyer or prospective buyer
8282 is offered the opportunity to purchase merchandise or goods and in
8383 connection with the purchase receives the seller's promise or
8484 representation that the buyer shall have the right to receive
8585 compensation or consideration in any form for furnishing to the
8686 seller the names of other prospective buyers if receipt of the
8787 compensation or consideration is contingent upon the occurrence of
8888 an event subsequent to the time the buyer purchases the merchandise
8989 or goods;
9090 (20) representing that a guarantee or warranty confers
9191 or involves rights or remedies which it does not have or involve,
9292 provided, however, that nothing in this subchapter shall be
9393 construed to expand the implied warranty of merchantability as
9494 defined in Sections 2.314 through 2.318 and Sections 2A.212 through
9595 2A.216 to involve obligations in excess of those which are
9696 appropriate to the goods;
9797 (21) promoting a pyramid promotional scheme, as
9898 defined by Section 17.461;
9999 (22) representing that work or services have been
100100 performed on, or parts replaced in, goods when the work or services
101101 were not performed or the parts replaced;
102102 (23) filing suit founded upon a written contractual
103103 obligation of and signed by the defendant to pay money arising out
104104 of or based on a consumer transaction for goods, services, loans, or
105105 extensions of credit intended primarily for personal, family,
106106 household, or agricultural use in any county other than in the
107107 county in which the defendant resides at the time of the
108108 commencement of the action or in the county in which the defendant
109109 in fact signed the contract; provided, however, that a violation of
110110 this subsection shall not occur where it is shown by the person
111111 filing such suit he neither knew or had reason to know that the
112112 county in which such suit was filed was neither the county in which
113113 the defendant resides at the commencement of the suit nor the county
114114 in which the defendant in fact signed the contract;
115115 (24) failing to disclose information concerning goods
116116 or services which was known at the time of the transaction if such
117117 failure to disclose such information was intended to induce the
118118 consumer into a transaction into which the consumer would not have
119119 entered had the information been disclosed;
120120 (25) using the term "corporation," "incorporated," or
121121 an abbreviation of either of those terms in the name of a business
122122 entity that is not incorporated under the laws of this state or
123123 another jurisdiction;
124124 (26) selling, offering to sell, or illegally promoting
125125 an annuity contract under Chapter 22, Acts of the 57th Legislature,
126126 3rd Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
127127 Statutes), with the intent that the annuity contract will be the
128128 subject of a salary reduction agreement, as defined by that Act, if
129129 the annuity contract is not an eligible qualified investment under
130130 that Act or is not registered with the Teacher Retirement System of
131131 Texas as required by Section 8A of that Act; [or]
132132 (27) taking advantage of a disaster declared by the
133133 governor under Chapter 418, Government Code, by:
134134 (A) selling or leasing fuel, food, medicine, or
135135 another necessity at an exorbitant or excessive price; or
136136 (B) demanding an exorbitant or excessive price in
137137 connection with the sale or lease of fuel, food, medicine, or
138138 another necessity; or
139139 (28) an act of a health care provider resulting in a
140140 preventable adverse event, as described by Section 17.463.
141141 SECTION 2. Subchapter E, Chapter 17, Business & Commerce
142142 Code, is amended by adding Section 17.463 to read as follows:
143143 Sec. 17.463. PREVENTABLE ADVERSE HEALTH CARE EVENT. (a) In
144144 this section:
145145 (1) "Health care provider" means a person or facility
146146 licensed, certified, or otherwise authorized by the laws of this
147147 state to administer health care, for profit or otherwise, in the
148148 ordinary course of business or professional practice.
149149 (2) "Serious disability" means:
150150 (A) a physical or mental impairment that
151151 substantially limits one or more major life activities of an
152152 individual such as seeing, hearing, speaking, walking, or
153153 breathing, or a loss of a bodily function, if the impairment or loss
154154 lasts more than seven days or is still present at the time of
155155 discharge from an inpatient health care facility; or
156156 (B) loss of a body part.
157157 (3) "Serious injury" means a bodily injury that
158158 results in:
159159 (A) death;
160160 (B) permanent and serious impairment of an
161161 important bodily function; or
162162 (C) permanent and significant disfigurement.
163163 (b) For purposes of this section, a preventable adverse
164164 health care event is any of the following events that occur during
165165 the provision of a health care service by a health care provider to
166166 a patient:
167167 (1) surgery performed on the wrong body part that is
168168 not consistent with the documented informed consent for that
169169 patient, excluding a situation requiring prompt action that occurs
170170 in the course of surgery or an urgent situation that precludes
171171 obtaining informed consent;
172172 (2) surgery performed on the wrong patient;
173173 (3) the wrong surgical procedure performed on the
174174 patient that is not consistent with the documented informed consent
175175 for that patient, excluding a situation requiring prompt action
176176 that occurs in the course of surgery or an urgent situation that
177177 precludes obtaining informed consent;
178178 (4) the unintended retention of a foreign object in
179179 the patient after surgery or another procedure;
180180 (5) death during or immediately after surgery if the
181181 patient would be classified as a normal, healthy patient under
182182 guidelines published by a national association of
183183 anesthesiologists;
184184 (6) death or serious disability caused by the use of a
185185 contaminated drug, device, or biologic provided by a health care
186186 provider if the contamination is the result of a generally
187187 detectable contaminant in drugs, devices, or biologics, regardless
188188 of the source of the contamination or product;
189189 (7) an infant being discharged from a health care
190190 facility to the wrong person;
191191 (8) death or serious disability associated with the
192192 patient's disappearance from a health care facility for more than
193193 four hours, excluding the death or serious disability of an adult
194194 patient who has decision-making capacity;
195195 (9) abduction of the patient from a health care
196196 facility;
197197 (10) sexual assault of the patient within or on the
198198 grounds of a health care facility; and
199199 (11) death or serious injury resulting from a physical
200200 assault of the patient that occurs within or on the grounds of a
201201 health care facility.
202202 (c) Notwithstanding any other law, an action which alleges a
203203 claim to relief under Section 17.50 of this subchapter in relation
204204 to a preventable adverse event is not a health care liability claim
205205 subject to Chapter 74, Civil Practice and Remedies Code. In an
206206 action described by this subsection, the consumer bringing the
207207 claim for relief is not required to demonstrate that the consumer
208208 relied on the preventable adverse event to the consumer's
209209 detriment.
210210 SECTION 3. The change in law made by this Act applies only
211211 to a cause of action that accrues on or after the effective date of
212212 this Act. A cause of action that accrues before the effective date
213213 of this Act is governed by the law in effect immediately before that
214214 date, and that law is continued in effect for that purpose.
215215 SECTION 4. This Act takes effect immediately if it receives
216216 a vote of two-thirds of all the members elected to each house, as
217217 provided by Section 39, Article III, Texas Constitution. If this
218218 Act does not receive the vote necessary for immediate effect, this
219219 Act takes effect September 1, 2009.