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