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.