text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Health Care Liability Reform Act''.
  
  SEC. 2. HEALTH CARE LIABILITY REFORM.
  
      (a) Punitive Damages.--
              (1) Award.--Punitive damages may, to the extent permitted 
          by applicable State law, be awarded against a manufacturer or 
          product seller in a civil action if the claimant establishes by 
          clear and convincing evidence that the harm suffered was the 
          result of conduct manifesting actual malice.
              (2) Drugs and devices.--The manufacturer of a prescription 
          drug or device and a health care provider shall not be subject 
          to punitive damages with respect to harm caused by a drug or 
          device if the drug or device was approved under the Federal 
          Food, Drug, and Cosmetic Act unless--
                      (A) the manufacturer withholds from the Food and 
                  Drug Administration, or
                      (B) the health care provider withholds from a 
                  patient,
          information which is relevant to the performance of the drug or 
          device and causally related to the harm suffered by the 
          plaintiff.
              (3) Limitation on amount.--The amount of punitive damages 
          that may be awarded for a claim in any civil action shall not 
          exceed 3 times the amount awarded to the claimant for the 
          economic injury on which such claim is based, or $250,000, 
          whichever is greater.
      (b) Several Liability for Noneconomic Damages.--In any action, the 
  liability of each manufacturer or product seller of the product 
  involved in such action shall be several only and shall not be joint 
  for noneconomic damages. Such manufacturer or product seller shall be 
  liable only for the amount of noneconomic damages allocated to such 
  manufacturer or seller in direct proportion to such manufacturer's or 
  such seller's percentage of responsibility as determined by the trier 
  of fact.
      (c) Definitions.--As used in this section:
              (1) Claimant.--The term ``claimant'' means any person who 
          brings a product liability action and any person on whose 
          behalf such an action is brought, including such person's 
          decedent if such an action is brought through or on behalf of 
          an estate or such person's legal representative if it is 
          brought through or on behalf of a minor or incompetent.
              (2) Malice.--The term ``malice'' means conduct that is 
          either--
                      (A) specifically intended to cause serious personal 
                  injury, or
                      (B) carried out with both a flagrant indifference 
                  to the rights of the claimant and an awareness that 
                  such conduct is likely to result in serious personal 
                  injury.
              (3) Manufacturer.--With respect to a product, the term 
          ``manufacturer'' means--
                      (A) any person who is engaged in a business to 
                  produce, create, make, or construct the product and who 
                  designs or formulates the product or has engaged 
                  another person to design or formulate the product,
                      (B) a product seller of the product who, before 
                  placing the product in the stream of commerce--
                              (i) designs or formulates or has engaged 
                          another person to design or formulate an aspect 
                          of the product after the product was initially 
                          made by another, and
                              (ii) produces, creates, makes, or 
                          constructs such aspect of the product, or
                      (C) any product seller not described in 
                  subparagraph (B) which holds itself out as a 
                  manufacturer to the user of the product,
              (4) Product.--The term ``product''--
                      (A) means any object, substance, mixture, or raw 
                  material in a gaseous, liquid, or solid state--
                              (i) which is capable of delivery itself, in 
                          a mixed or combined state, or as a component 
                          part or ingredient,
                              (ii) which is produced for introduction 
                          into trade or commerce,
                              (iii) which has intrinsic economic value, 
                          and
                              (iv) which is intended for sale or lease to 
                          persons for commercial or personal use, and
                      (B) does not include--
                              (i) human tissue, human organs, human 
                          blood, and human blood products, or
                              (ii) electricity, water delivered by a 
                          utility, natural gas, or steam,
              (5) Product seller.--The term ``product seller''--
                      (A) means a person--
                              (i) who sells, distributes, leases, 
                          prepares, blends, packages, or labels a product 
                          or is otherwise involved in placing a product 
                          in the stream of commerce, or
                              (ii) who installs, repairs, or maintains 
                          the harm-causing aspect of a product, and
                      (B) does not include--
                              (i) a manufacturer,
                              (ii) a seller or lessor of real property,
                              (iii) a provider of professional services 
                          in any case in which the sale or use of a 
                          product is incidental to the transaction and 
                          the essence of the transaction is the 
                          furnishing of judgment, skill, or services,
                              (iv) any person who acts only in a 
                          financial capacity with respect to the sale of 
                          a product, or
                              (v) any person who leases a product under a 
                          lease arrangement in which the selection, 
                          possession, maintenance, and operation of the 
                          product are controlled by a person other than 
                          the lessor.
  
  SEC. 3. PREEMPTION.
  
      This Act preempts State law, with respect to both procedural and 
  substantive measures, to the extent that such law--
              (1) permits the recovery of a greater amount of punitive 
          damages by a plaintiff than that authorized by section 2(a)(3); 
          or
              (2) permits an action for joint liability for noneconomic 
          damages against a manufacturer or product seller of a product 
          involved in the action, which action is prohibited by section 
          2(b).
  Any issue that is not governed by this Act shall be governed by 
  otherwise applicable State or Federal law.
target: Prohibits the manufacturer of a prescription drug or device and a health care provider from being subject to punitive damages with respect to harm caused by a drug or device if the drug or device was approved under the Federal Food, Drug, and Cosmetic Act unless: (1)the manufacturer withholds from the Food and Drug Administration; or (2) the health care provider withholds from a patient, information which is relevant to the performance of the drug or device and causally related to the harm suffered by the plaintiff.
feat_title: Health Care Liability Reform Act