By Hirschi, et al.                                    H.B. No. 2388
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the protection of public employees who report a
    1-3  violation of law, cooperate in an official investigation, or refuse
    1-4  to take an unlawful action.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Chapter 832, Acts of the 68th Legislature,
    1-7  regular Session, 1983 (Article 6252-16a, Vernon's Texas Civil
    1-8  Statutes), is amended to read as follows:
    1-9  Sec. 1.  Definitions.  In this Act:
   1-10        (1)  "Appropriate law enforcement authority" means an entity
   1-11  within a state or local governmental body or within the federal
   1-12  government that is authorized to:
   1-13              (A)  investigate or prosecute a violation of criminal
   1-14  law, including, but not limited to city attorney, county attorney,
   1-15  district attorney, attorney general, United States attorney, city
   1-16  police, county sheriff, Department of Public Safety, and Federal
   1-17  Bureau of Investigation; or
   1-18              (B)  enforce or regulate under the law alleged to be
   1-19  violated.
   1-20        (2) <(1)>  "Law" means a state or federal statute, an
   1-21  ordinance passed by a local governmental body, or a written rule
   1-22  formally adopted under a statute or an ordinance.
   1-23        (3) <(2)>  "Local governmental body" means a political
    2-1  subdivision of the state.
    2-2        (4)  "Personnel action" means an action that affects
    2-3  compensation, promotion, demotion, transfer, work assignment or
    2-4  evaluation of performance.
    2-5        (5) <(3)>  "Public employee" means a paid employee or paid
    2-6  appointed officer of <person who performs services for compensation
    2-7  under a written or oral contract for> a state or local governmental
    2-8  body.  The term does not include an independent contractor.
    2-9        (6) <(4)>  "State governmental body" means:
   2-10              (A)  a board, commission, department, office, or other
   2-11  agency in the executive branch of state government that was created
   2-12  under the constitution or a statute of the state, including an
   2-13  institution of higher education as defined by Section 61.003,
   2-14  <Texas> Education Code;
   2-15              (B)  the legislature or a legislative agency; or
   2-16              (C)  the supreme court, the court of criminal appeals,
   2-17  a court of appeals, a state judicial agency, or the State Bar of
   2-18  Texas.
   2-19        Sec. 2.  Retaliation prohibited.  A state or local
   2-20  governmental body may not suspend or terminate the employment of,
   2-21  or take other adverse personnel action <otherwise discriminate>
   2-22  against<,> a public employee who:
   2-23        (1)  reports a violation of law by the employer or a fellow
   2-24  employee to an appropriate law enforcement authority if the
   2-25  employee:
    3-1              (A)  makes the report in good faith; and
    3-2              (B)  first reports the violation of law to an employee
    3-3  designated by the head of the state or local governmental body to
    3-4  receive such reports and allow the employing governmental body a
    3-5  reasonable period in which to take appropriate action in response
    3-6  to the report.  An employee is not required to first report under
    3-7  this section if the employee:
    3-8                    (i)  reasonably fears reprisal as a result of the
    3-9  report;
   3-10                    (ii)  reasonably believes an emergency exists;
   3-11                    (iii)  believes with reasonable certainty that
   3-12  the violation is already known to one or more supervisors; or
   3-13                    (iv)  reasonably believes that the reports to the
   3-14  employer will not result in prompt action to remedy the violation;
   3-15  For purposes of this section, the term "good faith" means that the
   3-16  employee reasonably believes the allegations of fact in the report
   3-17  are true and reasonably believes the report concerns a violation of
   3-18  law.  <report is made in good faith.>
   3-19        (2)  An employee is not entitled to the protection provided
   3-20  by this article unless there is some writing sufficient to indicate
   3-21  that the employee in fact made a report that a violation of law had
   3-22  occurred.
   3-23        Sec. 3.  Waiver of Immunity; Defense <Remedy, burden of
   3-24  proof>; venue; utilization of administrative remedies.
   3-25        (a)  A public employee who alleges a violation of this Act
    4-1  may sue the employing state or local governmental body for the
    4-2  remedies provided by the Act, and sovereign immunity is waived and
    4-3  abolished to the extent of liability for the remedies allowed under
    4-4  this Act for a violation of this Act <for injunctive relief,
    4-5  damages, or both>.  Except as provided by Subsection (d) of this
    4-6  section, an employee who seeks relief under this Act must sue not
    4-7  later than the 90th day after the day the alleged violation
    4-8  occurred or was discovered by the employee through the use of
    4-9  reasonable diligence.
   4-10        (b)(1)  A public employee who sues under this section has the
   4-11  burden of proof, but it is a rebuttable presumption that the
   4-12  employee was suspended or terminated for reporting a violation of
   4-13  law if the employee was suspended or terminated not later than the
   4-14  90th day after making a report in good faith.
   4-15        (2)  It is an affirmative defense to a suit under this Act
   4-16  that the employing state or local governmental body would have
   4-17  taken the action against the employee that forms the basis of the
   4-18  suit based solely on information, observation, or evidence that is
   4-19  not related to the fact that the employee made a report of a
   4-20  violation of law that is protected under Section 2 of this Act.
   4-21        (c)  A public employee who sues under this section may bring
   4-22  suit in the district court of the county in which the cause of the
   4-23  action arises <he resides or in the district court of Travis
   4-24  County>.
   4-25        (d)  Before bringing an action under this section, an
    5-1  employee of a state or local governmental body must utilize
    5-2  <exhaust> any applicable grievance or appeal procedures adopted by
    5-3  the employing <local> governmental body to resolve disputes
    5-4  concerning the suspension or termination of an employee's
    5-5  employment or an adverse personnel action <allegation of unlawful
    5-6  discrimination>. Time used by the employee in following those
    5-7  procedures may not be included in the determination of the running
    5-8  of the limitations period established by Subsection (a) of this
    5-9  section.  The employee must invoke the applicable grievance or
   5-10  appeal procedure not later than the 90th day after the date the
   5-11  alleged violation occurred or was discovered by the employee
   5-12  through the use of reasonable diligence.
   5-13  (e)  If a final decision is not rendered within 30 days of
   5-14  initiation, the employee may:
   5-15              (i)  elect to continue the grievance or appeal
   5-16  procedure and have 30 days after the exhaustion of remedies to file
   5-17  suit; or
   5-18              ii)  elect to abort the grievance or appeal procedure
   5-19  and file suit within the time remaining of the initial 90 day
   5-20  period. <provisions of Subsection (d) do not apply.>
   5-21  Sec. 4.  Remedies <Damages; reinstatement>  (a)  A public employee
   5-22  who successfully sues under this Act:
   5-23        (1)  may recover damages including:
   5-24              (i) <(1)>  actual damages;
   5-25              <(2)  exemplary damages;>
    6-1              (ii) <(3)>  costs of court<;> and
    6-2              (iii) <(4)>  reasonable attorney's fees;<.>
    6-3              (2)  may obtain appropriate injunctive relief,
    6-4  including reinstatement to his former position or to an equivalent
    6-5  position;
    6-6        (c)  Liability of a state governmental body under this Act is
    6-7  limited to money damages in a maximum amount of $250,000.
    6-8        (d)  Liability of a local governmental body under this Act is
    6-9  limited to money damages in a maximum amount of $100,000; except
   6-10  liability of a municipality is limited to money damages in a
   6-11  maximum amount of $250,000.
   6-12  <(b)  In addition to amounts recovered under Subsection (a) of this
   6-13  section, a public employee whose employment is suspended or
   6-14  terminated in violation of this Act is entitled to:>
   6-15        <(1)  reinstatement in his former position;>
   6-16        <(2)  compensation for wages lost during the period of
   6-17  suspension or termination; and>
   6-18        <(3)  reinstatement of any fringe benefits or seniority
   6-19  rights lost because of the suspension or termination.>
   6-20  Sec. 4A.  SUIT BROUGHT IN BAD FAITH OR WITHOUT REASONABLE BASIS.
   6-21  In a suit filed under this Act, the court may order the public
   6-22  employee, or his attorney, who brought suit to pay costs of court
   6-23  and reasonable attorney's fees to the defendant governmental body
   6-24  if the court determines that the suit:
   6-25        (1)  was brought in bad faith;
    7-1        (2)  was groundless;
    7-2        (3)  was for the purpose of harassment.
    7-3  Sec. 5.  Civil penalty.  (a)  A supervisor who suspends or
    7-4  terminates the employment of a public employee for reporting a
    7-5  violation of law under this Act is subject to a civil penalty not
    7-6  to exceed $1,000.  A penalty assessed under this subsection shall
    7-7  be paid by the supervisor and may not be paid by the employing
    7-8  governmental body.
    7-9  (b)  The attorney general or the appropriate prosecuting attorney
   7-10  may sue to collect the penalty.
   7-11        <(b)>  Funds collected under this section shall be deposited
   7-12  in the state treasury in the general revenue fund.
   7-13  Sec. 5A.  LIMIT ON INDIVIDUAL LIABILITY.  The personal liability of
   7-14  a supervisor or other individual under this Act is limited to the
   7-15  civil penalty that may be assessed against a supervisor under
   7-16  Section 5 of this Act.
   7-17        Sec. 6.  Notice.  Each state or local governmental body shall
   7-18  notify its employees of their rights under this Act by posting an
   7-19  appropriately worded sign in a prominent place in the workplace.
   7-20  The director of the state employees division of the office of the
   7-21  attorney general shall prescribe the design and content of the
   7-22  sign.
   7-23  SECTION 2.  The changes in law made by this Act apply only to a
   7-24  suspension or termination of employment of a public employee or to
   7-25  other adverse personnel action taken against a public employee on
    8-1  or after the effective date of this Act.  A suspension or
    8-2  termination of employment of a public employee or other
    8-3  discrimination against the employee, within the meaning of the law
    8-4  changed by this Act, that is taken before the effective date of
    8-5  this Act is governed by the law existing on the date the
    8-6  suspension, termination, or other discrimination occurred, and the
    8-7  former law is continued in effect for that purpose.  No change in
    8-8  law made by this Act should be read as a comment upon or an
    8-9  interpretation of prior existing law.
   8-10        SECTION 3.  The importance of this legislation and the
   8-11  crowded condition of the calendars in both houses create an
   8-12  emergency and an imperative public necessity that the
   8-13  constitutional rule requiring bills to be read on three several
   8-14  days in each house be suspended, and this rule is hereby suspended,
   8-15  and this Act take effect and be in force from and after its
   8-16  passage, and it is so enacted.