Three Tort Reform Bills Under Consideration in the Texas Legislature

By Ezequiel "Zeke" Moya, Jr. | May 26, 2026

Three draft bills addressing personal injury litigation are currently circulating in the Texas Legislature. Together, they would modify attorney and healthcare provider discipline standards, change the rules governing evidence of medical expenses at trial, and establish new standards and procedures for noneconomic damages awards. Below is a summary of what each bill proposes.

Bill 1: Discipline for Conduct Involving Medical Records and Billing

The first draft amends Chapter 82 of the Government Code, which governs attorney discipline, and Section 105.002 of the Occupations Code, which governs healthcare providers.

For attorneys, the bill would expand the definition of "dishonorable conduct" to include presenting medical records in a civil action that a reasonably competent attorney should know reflect care that probably was not medically necessary, or charges that are not reasonable compared to market-based rates. An alternative version of the provision targets attorneys who participate with a healthcare provider "in a pattern or practice of over-diagnosing, over-treating, or over-billing."

For healthcare providers, the bill creates parallel categories of "unprofessional conduct," including knowingly presenting medical records that reflect non-medically-necessary services or unreasonable charges in a civil action. It would also require a provider to disclose, in writing, any financial interest the provider or an immediate family member has in a "niche hospital" before referring a patient there, and to inform the patient of alternative facilities.

Both new categories would expose the regulated party — attorney or provider — to disciplinary action by the relevant licensing authority.

Bill 2: Evidence of Medical Expenses

The second draft adds a new Section 41.015 to the Civil Practice and Remedies Code. It applies to civil actions in which a claimant seeks to recover health care expenses that have not already been paid by a governmental or non-governmental third-party payor or in an arm's-length transaction.

In any such case, the trial court would be required to admit three categories of evidence:

• Amounts paid by governmental and non-governmental third-party payors (other than Medicaid) for the same kinds of services provided to the injured person, regardless of whether any payor had a legal or contractual obligation to pay the claimant's expenses;

• Evidence of contractual and financial relationships between the claimant's attorney and the healthcare provider; and

• Evidence that a third-party payor was available to pay the claimant's healthcare expenses.

  
  

The bill directs the Texas Supreme Court to adopt rules implementing the section. It would apply to actions filed on or after the effective date and to pending cases in which trial or retrial begins more than 90 days after that date.

This provision would supplement Texas's existing "paid or incurred" framework under Section 41.0105 and the Texas Supreme Court's decision in Haygood v. De Escabedo, which already limits recovery of medical expenses to amounts actually paid or incurred.

Bill 3: Non-economic Damages Standards and Procedures

The third bill is the most extensive of the three. It amends Chapter 41 of the Civil Practice and Remedies Code in several ways.

New definitions. The bill defines "mental or emotional pain or anguish" as suffering "of such a high degree that it causes a substantial disruption in a person's life," including loss of consortium, loss of companionship, loss of enjoyment of life, disfigurement, and physical impairment. "Physical pain and suffering" is defined as a consciously felt sensation that either arises from an observable injury, disfigurement, or impairment, or is shown through "objectively verifiable medical evaluation or testing."

Standards for awards. A new Section 41.0025 provides that awards of physical pain and suffering or mental anguish damages must be based on evidence of the nature, duration, and severity of the injury and reflect "a rational connection, grounded in the evidence, between the injury suffered and the dollar amount." Such awards may not be used to penalize the defendant, make an example to others, or "serve a social good," and may not include amounts properly considered economic losses.

Jury instructions and verdict form. The trial court would be required to instruct the jury on the new definitions and standards and to break the verdict form into six categories: past and future physical pain and suffering, past and future mental or emotional pain or anguish, and past and future injury to reputation.

Judicial explanation of large awards. A new Section 41.0125 would require trial judges in personal injury and wrongful death cases to state on the record the legal and factual support for noneconomic damages awards exceeding specified thresholds:

• For mental anguish in wrongful death and survival actions, the amount provided by Section 74.303;

• For physical pain and suffering in personal injury actions, the lesser of three times past and future health care expenses or $100,000 per year of the claimant's life expectancy;

• $2.5 million for mental anguish in a personal injury action arising from an event primarily causing emotional injury; and

• $1 million for mental anguish in a personal injury action arising from an event primarily causing bodily injury.

  
  

When providing this explanation, the court must reference Texas judgments of comparable amounts under comparable facts that have been affirmed on appeal.

The bill also relabels several existing sections of Chapter 41 to clarify that they apply specifically to exemplary damages.

Effective Dates

All three bills are drafted to take effect immediately upon a two-thirds vote in each chamber, or otherwise on September 1, 2027. Bills 1 and 3 would apply to actions filed on or after the effective date and to pending actions in which trial or retrial begins more than 180 days after that date. Bill 2 uses a 90-day threshold.

Context

Texas has enacted several rounds of tort reform legislation in recent decades, most notably House Bill 4 in 2003, which addressed medical liability, exemplary damages, and various procedural issues. The current proposals would build on that framework, focusing on attorney and provider conduct, the scope of admissible evidence on medical damages, and the standards governing noneconomic damages.

The bills remain in draft form and have not yet been formally filed or assigned committee. Any of the language summarized above is subject to revision as the proposals move through the legislative process.

We will continue to monitor these bills and post updates as they progress.

This post summarizes draft bill text and is provided for general informational purposes only. It is not legal advice. For questions about how these proposals or current law may affect a specific matter, please contact our office.