Bill Number: TX82RHB 2031
Date: 04-15-
2011
HOUSE PROPOSED AMENDMENT(S)
A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of a voluntary compensation plan
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as a method of alternative dispute resolution.
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
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SECTION 1. Title 7, Civil Practice and Remedies Code, is
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amended by adding Chapter 160 to read as follows:
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CHAPTER 160. VOLUNTARY COMPENSATION PLANS
Sec. 160.001. DEFINITIONS. In this chapter:
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(1) "Claim" means a request to obtain compensation
from a voluntary compensation plan.
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(2) "Claimant" means a person making a claim.
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plan
(3) "Legitimate claim" means a claim that in the
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administrator's opinion likely would result in the claimant
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recovering damages from the plan creator if the claim was
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asserted in a civil action by the claimant against the plan
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creator.
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(4) "Plan administrator" means an individual a
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claimant can contact to obtain information about or compensation
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from a voluntary compensation plan. There may be more than one
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plan administrator.
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(5) "Plan creator" means a person who establishes a
voluntary compensation plan under this chapter.
(6) "Potentially liable person" means a person
against whom a civil action for damages for injury, death, or
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property damage might be filed by a claimant.
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(7) "voluntary compensation plan" means a plan
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established under this chapter to compensate claimants for
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damages for injury, death, or property damage that may have been
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by the plan creator.
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Sec. 160.002. ESTABLISHING A PLAN. (a) A potentially
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liable person, acting individually or with another potentially
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liable person, may establish a voluntary compensation plan under
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this chapter at any time.
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(b) A voluntary compensation plan is established for
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purposes of this chapter when the plan creator has both
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published and posted a notice as required by Subsections (c) and
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(d).
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(c) A plan creator must publish a notice of the
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establishment of a voluntary compensation plan in a newspaper of
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record in the county in which the plan creator has the plan
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creator's principal office or principal place of business in
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this state and, for an event, in a newspaper in the county where
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the event occurred if the event occurred in this state. The
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notice must be at least 20 column inches in size, must state
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that the plan creator has established a plan for a specified
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event or product, and must contain the information required by
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Sections 160.004(a)(1), (2), (3), and (4).
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(d) A plan creator must post a notice of the establishment
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of a voluntary compensation plan on the plan creator's Internet
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website. The notice must state that the plan creator has
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established a plan for a specified event or product, contain the
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information required by Sections 160.004(a)(1), (2), (3), and
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(4), and provide a link to a website a potential claimant can
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use to contact the plan administrator. The notice must remain
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posted on the Internet website until the plan is discontinued.
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Sec. 160.003. APPOINTING PLAN ADMINISTRATORS. (a) A plan
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creator may develop a plan with or without the participation of
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a person who serves or may serve as the plan administrator.
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(b) A plan administrator must be an independent third
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party appointed by the multidistrict litigation panel. The panel
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shall appoint the plan administrator as soon as reasonably
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practicable after a request for an appointment is made by a plan
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creator or after the need for appointing a plan administrator
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arises.
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Sec. 160.004. CONTENTS OF PLAN. (a) A voluntary
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compensation plan established under this chapter must contain
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the following elements:
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(1) the name of the plan creator;
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(2) the name, address, telephone number, and e-mail
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address of the plan administrator;
(3) the kind or class of claimants who may be
eligible to receive compensation from the plan;
(4) the deadline by which claims must be filed with
the plan administrator;
(5) the criteria the plan administrator will use to
determine whether a claim is legitimate;
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(6) the formula, method, or information the plan
administrator will use to determine the amount that will be paid
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to a claimant for a legitimate claim, or a schedule showing the
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amounts the plan administrator will pay claimants for legitimate
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claims;
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(7) the dates and methods by which claims will be
paid;
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(8) a statement disclosing the extent to which
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accepting payment from the plan bars suit against the plan
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creator or others; and
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(9) any other information necessary for a claimant
to
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obtain information about or request compensation from the plan.
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(b) A potential claimant must be able to obtain from the
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plan administrator, or ascertain by using a program or other
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method made available by the plan administrator, a reasonably
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accurate statement of the amount of compensation the potential
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claimant could receive from the plan.
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(c) A voluntary compensation plan may be amended at any
time.
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Sec. 160.005. LEGAL EFFECT OF ESTABLISHING PLAN. (a)
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Establishing, attempting to establish, or planning done in
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regard to establishing a voluntary compensation plan under this
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chapter is not an admission of liability by any person.
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(b) Evidence that a person established, attempted to
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establish, planned in regard to establishing, or sought
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information or compensation from a voluntary compensation plan
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is not admissible in any civil, criminal, or administrative
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proceeding in which the tribunal will determine liability for
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the acts or omissions that gave rise to the establishment or
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potential establishment of the voluntary compensation plan.
(c) The notice published and posted as required by Section
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160.002 is not admissible in any civil, criminal, or
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administrative proceeding in which the tribunal will determine
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liability for the acts or omissions that gave rise to the
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establishment of the voluntary compensation plan.
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(d) Any statement by the plan creator or plan
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administrator, whether oral or written, regarding the plan or
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the plan creator establishing, attempting to establish, or
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planning to establish a voluntary compensation plan under this
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chapter is not admissible in any civil, criminal, or
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administrative proceeding in which the tribunal will determine
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liability for the acts or omissions that gave rise to the
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establishment or potential establishment of the voluntary
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compensation plan.
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(e) A plan creator's consideration of or planning for
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establishing a voluntary compensation plan is privileged from
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discovery or disclosure in any civil, criminal, or
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administrative proceeding in which the tribunal will determine
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liability for the acts or omissions that gave rise to the
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establishment or potential establishment of the voluntary
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compensation plan.
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(f) Establishing, attempting to establish, or planning in
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regard to establishing a voluntary compensation plan under this
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chapter does not create a legal duty owed by the plan
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administrator or plan creator to anyone. Establishing,
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attempting to establish, or planning done in regard to
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establishing a voluntary compensation plan does not give rise to
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a cause of action against a plan administrator or plan creator
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for breach of a duty of good faith and fair dealing, breach of
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Subchapter E, Chapter 17, Business & Commerce Code, or other
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similar statute, or breach of any other common law or statutory
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duty.
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(g) Establishing a voluntary compensation plan under this
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chapter does not create an obligation for the plan administrator
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or plan creator to negotiate the terms or conditions of payment
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from the plan or for the settlement of litigation or threatened
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litigation.
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(h) Because it is the public policy of this state to
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encourage the quick, fair, and inexpensive resolution of
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potential civil actions, this section is to be interpreted and
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applied liberally to encourage the use of voluntary compensation
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plans by protecting potentially liable persons from having their
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liability based in any respect on their establishing, attempting
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to establish, or planning in regard to establishing a voluntary
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compensation plan.
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Sec. 160.006. PROHIBITED CONTACT. (a) A plan creator or
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plan administrator may not contact a claimant or potential
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claimant who the plan creator knows or reasonably should know is
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represented by an attorney.
(b) A plan creator or plan administrator may not initiate
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contact with a claimant or potential claimant for the purpose of
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encouraging or attempting to induce the claimant or potential
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claimant to accept compensation under the plan.
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Sec. 160.007. SUPREME COURT RULES. The supreme court may
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promulgate rules to implement or govern proceedings under this
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chapter.
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SECTION 2. This Act takes effect immediately if it
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receives a vote of two-thirds of all the members elected to each
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house, as provided by Section 39, Article III, Texas
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Constitution. If this Act does not receive the vote necessary
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for immediate effect, this Act takes effect September 1, 2011
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