BILL ANALYSIS C.S.H.B. 383 By: Junell (Shapiro) Economic Development 4-27-95 Senate Committee Report (Substituted) BACKGROUND The individual liability of public officers and employees under state law is presently governed by common law rules. These rules, as they have evolved in the courts, provide different levels of immunity to public officials and employees depending upon the type of function the official or employee is engaged in when the cause of action arises. The courts have held that public officials are liable for acts arising out of the performance of ministerial functions, but have immunity for acts arising out of the performance of quasi-judicial or discretionary functions. If the cause of action involves a ministerial function, there is no limit to the amount of damages that may be awarded against an individual. In an effort to protect these individuals, some governmental entities have purchased insurance or provided indemnification for their officers and employees. State law provides that, in most circumstances, the liability of a governmental entity itself is limited. Also, a settlement of a suit against an entity is a bar to an action against an individual. This has resulted in many more lawsuits being brought against the individual as well as the governmental entity. PURPOSE As proposed, C.S.H.B. 383 provides for the liability of certain governmental units and to the employees and officers of those units. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 101.055, Civil Practice and Remedies Code, to provide that Chapter 101 does not apply to a claim arising from the action of an employee while responding to an emergency call or reacting to an emergency situation if the action is in compliance with the laws and ordinances applicable to emergency action, or in the absence of such a law or ordinance, if the action is not taken with conscious indifference or reckless disregard for the safety of others. SECTION 2. Amends Section 104.001, Civil Practice and Remedies Code, to require the state to indemnify certain persons without regard to whether the persons performed their services for compensation. SECTION 3. Amends Section 104.003(a), Civil Practice and Remedies Code, to prohibit, except by specific appropriation, state liability for indemnification from exceeding certain amounts. SECTION 4. Amends Chapter 108, Civil Practice and Remedies Code, as follows: CHAPTER 108. LIMITATION OF LIABILITY FOR PUBLIC SERVANTS Sec. 108.001. New heading: DEFINITIONS. (1) Redefines "public servant" as: (A) a public official elected or appointed to serve a governmental unit and acting in that capacity when the act or omission on which the damages were based occurred; or (B) covered by Section 104.001 or 102.001. (2) Provides that "public servant" does not include an independent contractor, an agent or employee of an independent contractor, or another person who performs a contract for a unit of government. Sec. 108.002. LIMITATION OF LIABILITY. (a)(1) Sets forth provisions under which, except in an action arising under U.S. laws, a public servant, other than a provider of health care as that term is defined in Section 108.002(c), is not personally liable for certain damages exceeding $100,000. (2) Sets forth provisions by which a public servant is covered for damages resulting from an act within the scope of local government for an amount not exceeding $100,000. (b)(1) Sets forth provisions under which, except in an action arising under U.S. laws, a public servant, other than a provider of health care as defined in Section 108.002(c), is not liable for property damages exceeding $100,000. (2) Sets forth provisions by which a public servant is covered for damages not exceeding $100,000. Sec. 108.003. STATE LIABILITY NOT AFFECTED. Provides that this chapter does not affect the liability for indemnification of the state under Chapter 104 or a local government under Chapter 102. (b) Provides that this chapter does not impose liability or waive immunity for a public servant who has common law, statutory, or other immunity. (c) Sets forth providers of health care in Sections 108.002(a) and (b). SECTION 5. Amends Chapter 101C, Civil Practice and Remedies Code, by adding Section 101.064, as follows: Sec. 101.064. LAND ACQUIRED UNDER FORECLOSURE OF LIEN. (a) Provides that this section applies only to a municipality with a population of 1.5 million or more that acquires land at a sale following the foreclosure of a lien held by the municipality. (b) Provides that this chapter does not apply to a claim that: (1) arises after the date the land was acquired and before the date the land is sold, conveyed, or exchanged by the municipality; and (2) arises from the condition of the land; a premises defect on the land; or an action committed by any person, other than an agent or employee of the municipality, on the land. (c) Defines "land." SECTION 6. Makes application of this Act prospective. SECTION 7. Effective date: September 1, 1995. Makes application of this Act prospective. SECTION 8. Emergency clause.