HOUSE JOURNAL SEVENTY-EIGHTH LEGISLATURE, REGULAR SESSION PROCEEDINGS

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1 HOUSE JOURNAL SEVENTY-EIGHTH LEGISLATURE, REGULAR SESSION PROCEEDINGS SEVENTH DAY MONDAY, JANUARY 27, 2003 The house met at 2 p.m. and was called to order by the speaker. The roll of the house was called and a quorum was announced present (Recordi12). Present Mr. Speaker; Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Rangel; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Truitt; Turner; Uresti; Villarreal; West; Wilson; Wise; Wohlgemuth; Wolens; Wong; Woolley; Zedler. Absent, Excused Corte; Geren; Van Arsdale. The invocation was offered by Dr. Logan Cummings, interim pastor, Ridgetop Baptist Church, Austin, as follows: Almighty God, whose we are and whom we serve, we commend our state to thee and thy servants in this place to the guidance of thy higher wisdom. Come upon us with renewing power that as we work for others we may show our love for thee. In our work, make us diligent. In our speech, make us instruments of thy truth. In our pleasures, spare us regrets, and in all we do, may we advance thy kingdom, so that at the end, we may be workmen who "needeth not to be ashamed." We recognize that you are Lord of all states, and we thank you for this state which you have given us, for it is yours and not our own. Grant us your wisdom and strength for daily duties in this place that we may serve you with clear minds,

2 162 78th LEGISLATURE REGULAR SESSION warm hearts, and new insights for the people s good. Amid the din of many voices, grant us the grace to pause and hear your still small voice. As we seek to do right, will you first make plain what is right. Through Jesus Christ our Lord. Amen. LEAVES OF ABSENCE GRANTED The following member was granted leave of absence for today and the remainder of the week because of important business in the district: Geren on motion of Kolkhorst. The following member was granted leave of absence for today because of important business in the district: Van Arsdale on motion of Gattis. The following member was granted leave of absence for today because of important business: Corte on motion of Puente. CAPITOL PHYSICIAN The speaker recognized Representative W. Smith who presented Dr. Donald Nino of Channelview as the "Doctor for the Day." The house welcomed Dr. Nino and thanked him for his participation in the Physician of the Day Program sponsored by the Texas Academy of Family Physicians. PROCLAMATIONS BY THE GOVERNOR OF THE STATE OF TEXAS The speaker laid before the house and had read the following proclamations by the governor: TO THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE SEVENTY-EIGHTH LEGISLATURE, REGULAR SESSION: Major changes must be made this session in Texas law to enable the state to exercise rate oversight authority over all insurers writing homeowners and automobile insurance. Most homeowners insurance policies in Texas are written by unregulated companies, and almost two-thirds of the market is held by three companies. Similar trends are occurring in the personal automobile insurance market. It is imperative that the people of Texas have insurance regulation that allows the Commissioner of Insurance to address practices where the market has malfunctioned, including the ability to lower rates, stabilize the insurance marketplace, increase competition, end unfair pricing practices, and stop fraud and abuse within the system. NOW, THEREFORE, I, RICK PERRY, Governor of the State of Texas, pursuant to Article III, Section 5, of the Texas Constitution and by this special message, submit the following emergency matters for immediate consideration to the 78th Legislature, now convened:

3 Monday, January 27, 2003 HOUSE JOURNAL 7th Day 163 Legislation that enacts an effective and efficient rate regulatory system that promotes stabilization of the market, product availability, price competition, and through its commissioner s actions a system that prevents rates that are excessive, inadequate, or unfairly discriminatory. Legislation that grants exclusive power to the Texas Department of Insurance and the Commissioner to order rate reductions when rates are unfair or excessive, as determined by the Commissioner of Insurance. Legislation that regulates the use of credit scoring or credit histories in underwriting and rating and that provides for an appeals process for consumers to contest actions taken against them by insurers as a result of the use of the credit scoring or credit histories. Legislation that enacts policy form oversight within a system that affords consumers greater choice through form flexibility and allows all insurers, regardless of size, to develop and use their own policy forms. Legislation that regulates water damage claim response and processing procedures, including granting the Commissioner greater authority in disciplining companies that are chronically negligent in their responses to claims. Legislation that requires licensing of parties associated with water damage claims settlement and water damage repairs, including public adjusters and mold remediators. Legislation that allows the Commissioner greater flexibility to require and approve withdrawal plans. Legislation that grants the Commissioner the authority to require all insurance companies, whether rate regulated or not, to supply the Department of Insurance with all documentation needed to evaluate past and estimated future rates. Austin, Texas January 23, 2003 Respectfully submitted, Rick Perry Governor of Texas TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE SEVENTY-EIGHTH TEXAS LEGISLATURE, REGULAR SESSION: All across Texas, doctors are abandoning the medical profession because of soaring malpractice rates and the plague of frivolous lawsuits. If this issue is not addressed soon, the medical malpractice crisis will do lasting damage to the practice of medicine in Texas and undermine the access Texans have to the quality, affordable health care they need.

4 164 78th LEGISLATURE REGULAR SESSION NOW, THEREFORE, I, RICK PERRY, Governor of the State of Texas, pursuant to Article III, Section 5, of the Texas Constitution and by this special message, submit the following emergency matters for immediate consideration to the 78th Legislature, now convened: Legislation that makes meaningful tort reform for the health care profession including but not limited to capping non-economic losses to plaintiffs at $250,000 and limiting plaintiffs attorney fees to a prescribed schedule based on the size of the award. Legislation that creates special courts or designates special judges to hear medical malpractice claims. These judges would have expertise in malpractice issues and would be better able to toss out frivolous lawsuits. This legislation should encourage these special courts or special judges to sanction lawyers and award litigation costs in frivolous cases. Legislation that improves the Board of Medical Examiners ability to police the medical profession and safeguard patient care through enforcement of licensing laws and consistent disciplinary enforcement actions. Legislation that develops a process by which doctors and hospitals around the state can agree upon a clear set of procedures for reducing medical errors, and for clear and swift disciplinary actions against the relatively few bad doctors. Legislation that extends tort immunity to health care providers who treat low-income patients. Legislation that provides for a form of temporary, emergency liability insurance coverage for doctors who have been denied coverage solely for economic reasons. Legislation that expands the Texas Department of Insurance and the Commissioner s exclusive ability to review insurance companies rates and ensure that medical malpractice premiums are commensurate with losses. Austin, Texas January 23, 2003 MOTION TO CHANGE VOTE Respectfully submitted, Rick Perry Governor of Texas On motion of Representative Hunter and by unanimous consent, the roll call vote (Record 10) taken on Wednesday, January 22, 2003, was changed to reflect Representative Hunter as present. HR 45 - ADOPTED (by Dukes) Representative Dukes moved to suspend all necessary rules to take up and consider at this time HRi45.

5 Monday, January 27, 2003 HOUSE JOURNAL 7th Day 165 HR 45, Commending the Austin Independent School District on its celebration of African American Heritage Month in February HR 45 was adopted without objection. HR 64 - ADOPTED (by Chisum) Representative Chisum moved to suspend all necessary rules to take up and consider at this time HRi64. HR 64, Granting the Texas DeMolay Association permission to use the house chamber on February 15 and 16, HR 64 was adopted without objection. HR 47 - ADOPTED (by Deshotel, et al.) Representative Deshotel moved to suspend all necessary rules to take up and consider at this time HRi47. HR 47, Recognizing January 27, 2003, as Orange County Day at the State Capitol. HR 47 was read and was adopted without objection. On motion of Representative Hamilton, the names of all the members of the house were added to HRi47 as signers thereof. INTRODUCTION OF GUESTS The speaker recognized Representative Deshotel who introduced a delegation from Orange County. BILLS AND RESOLUTIONS SIGNED BY THE SPEAKER Notice was given at this time that the speaker had signed bills and resolutions in the presence of the house (see the addendum to the daily journal, Signed by the Speaker, House List No. 2). HR 72 - ADOPTED (by Noriega) Representative Noriega moved to suspend all necessary rules to take up and consider at this time HRi72.

6 166 78th LEGISLATURE REGULAR SESSION HR 72, Honoring American veterans of the 1968 Tet Offensive on the occasion of the 35th anniversary of that assault. HR 72 was adopted without objection. ADJOURNMENT Representative Chisum moved that the house adjourn until 10 a.m. tomorrow. The house accordingly, at 2:27 p.m., adjourned until 10 a.m. tomorrow. AAAAAADDENDUMAAAAA SIGNED BY THE SPEAKER The following bills and resolutions were today signed in the presence of the house by the speaker: House List No. 2 HCRi26 AAAAAAPPENDIXAAAAA January 23 - HCRi26 ENROLLED

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