1-1  By:  Wentworth                                        S.B. No. 1389
    1-2        (In the Senate - Filed April 19, 1993; April 20, 1993, read
    1-3  first time and referred to Committee on State Affairs;
    1-4  May 22, 1993, reported favorably by the following vote:  Yeas 10,
    1-5  Nays 0; May 22, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Harris of Dallas   x                               
    1-9        Rosson             x                               
   1-10        Carriker                                      x    
   1-11        Henderson          x                               
   1-12        Leedom             x                               
   1-13        Lucio              x                               
   1-14        Luna               x                               
   1-15        Nelson             x                               
   1-16        Patterson          x                               
   1-17        Shelley                                       x    
   1-18        Sibley             x                               
   1-19        West                                          x    
   1-20        Whitmire           x                               
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to indemnification of certain government employees.
   1-24        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-25        SECTION 1.  Subsections (a) and (c), Section 102.002, Civil
   1-26  Practice and Remedies Code, are amended to read as follows:
   1-27        (a)  A local government may pay actual damages awarded
   1-28  against an employee of the local government if the damages:
   1-29              (1)  result from an act or omission of the employee in
   1-30  the course and scope of his employment for the local government;
   1-31  and
   1-32              (2)  arise from a cause of action for:
   1-33                    (A)  negligence or gross negligence; or
   1-34                    (B)  an intentional act, including a cause of
   1-35  action for a deprivation of a right, privilege, or immunity
   1-36  guaranteed by the constitution or laws of this state or of the
   1-37  United States.
   1-38        (c)  A local government may not pay damages awarded against
   1-39  an employee that<:>
   1-40              <(1)>  arise from a cause of action for official
   1-41  misconduct.  For purposes of this subsection, "official misconduct"
   1-42  has the meaning assigned by Section 21.002, Local Government Code.
   1-43  The term includes any act that would be an offense under Section
   1-44  39.01, Penal Code<; or>
   1-45              <(2)  arise from a cause of action involving a wilful
   1-46  or wrongful act or omission or an act or omission constituting
   1-47  gross negligence>.
   1-48        SECTION 2.  Section 102.003, Civil Practice and Remedies
   1-49  Code, is amended to read as follows:
   1-50        Sec. 102.003.  Maximum Payments.  (a)  Except as provided by
   1-51  Subsection (b), payments <Payments> under this chapter by a local
   1-52  government may not exceed:
   1-53              (1)  the limits on amounts recoverable against the
   1-54  local government established by Section 101.023 for personal
   1-55  injury, death, or property damage; or
   1-56              (2)  $100,000 to any one person or $300,000 for any
   1-57  single occurrence in any other <the> case <of personal injury or
   1-58  death or $10,000 for a single occurrence of property damage>.
   1-59        (b)  Notwithstanding any other law, a local government may
   1-60  pay damages awarded against an employee in any amount if the
   1-61  payment:
   1-62              (1)  is made with current funds that were not
   1-63  appropriated to the local government by the state; and
   1-64              (2)  is in the interest of the local government as
   1-65  determined by its governing body.
   1-66        SECTION 3.  Section 104.001, Civil Practice and Remedies
   1-67  Code, is amended to read as follows:
   1-68        Sec. 104.001.  State Liability; Persons Covered.  In a cause
    2-1  of action based on conduct described in Section 104.002, the state
    2-2  shall indemnify the following persons, without regard to whether
    2-3  the persons performed their services for compensation, for actual
    2-4  damages, court costs, and attorney's fees adjudged against:
    2-5              (1)  an employee, a member of the governing board, or
    2-6  any other officer of a state agency, institution, or department;
    2-7              (2)  a former employee, former member of the governing
    2-8  board, or any other former officer of a state agency, institution,
    2-9  or department who was an employee or officer when the act or
   2-10  omission on which the damages are based occurred;
   2-11              (3)  a physician or psychiatrist licensed in this state
   2-12  who was performing services under a contract with any state agency,
   2-13  institution, or department or a racing official performing services
   2-14  under a contract with the Texas Racing Commission when the act or
   2-15  omission on which the damages are based occurred;
   2-16              (4)  a person serving on the governing board of a
   2-17  foundation, corporation, or association at the request and on
   2-18  behalf of an institution of higher education, as that term is
   2-19  defined by Section 61.003(8), Education Code, not including a
   2-20  public junior college; or
   2-21              (5)  the estate of a person listed in this section.
   2-22        SECTION 4.  (a)  This Act takes effect September 1, 1993.
   2-23        (b)  This Act applies only to a claim for indemnity arising
   2-24  from conduct that occurs on or after the effective date of this
   2-25  Act.  A claim for indemnity arising from conduct that occurred
   2-26  before the effective date of this Act is governed by the law in
   2-27  effect at the time the conduct occurred, and that law is continued
   2-28  in effect for that purpose.
   2-29        SECTION 5.  The importance of this legislation and the
   2-30  crowded condition of the calendars in both houses create an
   2-31  emergency and an imperative public necessity that the
   2-32  constitutional rule requiring bills to be read on three several
   2-33  days in each house be suspended, and this rule is hereby suspended.
   2-34                               * * * * *
   2-35                                                         Austin,
   2-36  Texas
   2-37                                                         May 22, 1993
   2-38  Hon. Bob Bullock
   2-39  President of the Senate
   2-40  Sir:
   2-41  We, your Committee on State Affairs to which was referred S.B.
   2-42  No. 1389, have had the same under consideration, and I am
   2-43  instructed to report it back to the Senate with the recommendation
   2-44  that it do pass and be printed.
   2-45                                                         Rosson,
   2-46  Vice-Chairman
   2-47                               * * * * *
   2-48                               WITNESSES
   2-49                                                  FOR   AGAINST  ON
   2-50  ___________________________________________________________________
   2-51  Name:  Charles Rex Hall                          x
   2-52  Representing:  Self
   2-53  City:  Austin
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   2-55  Name:  Terry Davis                               x
   2-56  Representing:  Self
   2-57  City:  Austin
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   2-59                                                  FOR   AGAINST  ON
   2-60  ___________________________________________________________________
   2-61  Name:  Margo Frasier                             x
   2-62  Representing:
   2-63  City:  Austin
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   2-65  Name:  Robert Lemens                                           x
   2-66  Representing:  Tx Assn of Counties
   2-67  City:  Austin
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   2-69  Name:  Jorge Vega                                              x
   2-70  Representing:  Office of Attorney General
    3-1  City:  Austin
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